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Understanding Why
We Spend What We Spend
by Syble Solomon
We spend hours shopping every year and hours more paying
bills, but we rarely take time to step back and consider what we
spend money on. Rarer still are people who take some time to
think about why they are spending the way they are. On one hand,
it's surprising that people don't make even a minimal effort to
understand their spending habits because doing so can pay huge
dividends for the short- and long-term. On the other hand, it's
not that surprising because money is one of those taboo topics
that people would rather not talk about - even with a trusted
partner. Such conversations are often tedious, contentious,
embarrassing or generally stressful in some way. As a result,
the status quo prevails with our spending habits and we don't
make the progress we want, whether it's cutting out that $3
daily coffee or setting aside enough money to buy a house.
If paying just a little bit more attention to our habits and
attitudes might be the key to spending and saving better, how
can we get people to really look at how they relate to money?
Obviously, the approach must be easy to use and understand.
And, we'd want something that engages people, inspires
conversation and leads to valuable insights - but minimizes the
disagreements inherent in discussing money.
Money Habitudes is a fun, non-threatening educational card
game that was created to address this dilemma. Money Habitudes
is endorsed by the ICFE. It provides people with an easy tool
that generates healthy conversations about their habits and
attitudes (habitudes) related to money. The cards help people
understand their money habitudes and what motivates the way they
manage - or mismanage - their money.
Once people understand their own money habits and attitudes,
they begin to see why they spend the way they do. Perhaps it is
to feel secure, to present a positive image, or to feel good by
giving to others. Whatever the challenge, the cards help
identify the individual's patterns of spending, saving, giving
and investing and what motivates those patterns.
Conversely, using Money Habitudes can help people key in on
times when they should actually be spending more money. While
this may seem counterintuitive when it comes to better money
management, the reality is that sometimes it's better to buy
something of quality rather than simply the cheapest thing,
which often breaks and must then be replaced with a better,
costlier item. The goal isn't necessarily to always spend less,
but to spend smarter and with better balance.
Why we spend the way we do should also lead one to consider
when we spend on certain things. Are there certain times or
situations in which we make spending choices we later regret? If
you go shopping with your spouse, do you watch every penny - but
then pick up purchases you don't need when shopping with a
friend? Do you feel a stressful time calls for a night on the
town or a pint of ice cream? Do you love the rush of sales and
find yourself wrapped up in the excitement of getting a deal? Is
it dangerous for you to leave the house just after you get your
paycheck?
Simply having someone figure out what they spend money on
typically won't uncover such why and when factors, which are
just as important, if not more so. Once you present the whole
picture regarding people's spending habits, it's much easier for
them to see what's really going on, make meaningful changes and
achieve their financial goals. Money Habitudes cards help
explain the why and when behind spending. Armed with that
knowledge, people will be better able to implement a budget and
stick with it.
Syble Solomon, the creator of
Money Habitudes™, is a recognized expert on the psychology
of money. Among other accolades, she has been named Educator of
the Year by the Association for Financial Counseling and
Planning Education.
To learn more or order cards visit
MoneyHabitudes.com or call 888.833.4331.
Enter the code: ICFE on the checkout page to get a special
10% discount on your order until 2/1/10.
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About the ICFE:
About the
ICFE:
The Institute of Consumer Financial Education (ICFE), founded in 1982 by the
late Loren Dunton (creator of the “certified financial planner” (CFP)
designation) and it is dedicated to helping consumers of all ages to improve
their spending, increase savings and use credit more wisely. The ICFE trains and
certifies Personal Finance Instructors for its own curriculum. It also trains
and certifies Credit Report Reviewers and Identity Theft Prevention Specialists.
The ICFE is an award winning, nonprofit, consumer education organization that
has helped millions of people through its education programs and resources. It
publishes the Do-It-Yourself Credit File correction Guide, now in its 16th
printing and has distributed over one million “Credit/Debit Card Warning Labels”
and “Credit/Debit Card Sleeves” world wide.
The ICFE became an official partner with the Department of Defense/Financial
Readiness Campaign in June of 2004.
The ICFE is also a partner in the national Jump$tart Coalition for Financial
Literacy and the California Jump$tart chapter. The ICFE staff is also active
with San Diego Saves, an offshoot of America Saves, and the California Student
Debt Resource Awareness Project (CASDRAP) (studentdebthelp.org).
The ICFE’s on-line help for consumers who spend too much was featured in PARADE
Magazine in the Intelligence Report section. The money helps and tips are from
“The Money Instruction Book,” a course in personal finance, positioned to become
among the premier programs in the new bankruptcy and debtor education
initiatives.
The ICFE Web site at:
http://www.icfe.info helps consumers with mending spending, learning about
the proper use of credit, budget and expense guidelines, how to set up and
implement a spending-plan and also how to access financial education courses and
videos and how to teach children about money. Other ICFE services include a free
eNewsletter, and an online resource center of financial education learning
tools, including videos, books, software and personal finance courses.
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