How to avoid 'spaving' from hitting your wallet
There's an ol 'trick' with a new name hitting your bank account — and everyone is guilty of some form of it.
""Spaving" is the concept of spending to save more," says certified financial planner Bryan Kuderna, the founder of Kuderna Financial Team. "It's a way that companies from retail stores up to the online giants like Amazon and Walmart encourage consumers out there to buy more and more and get poured into "bargains.""
The key part of "spaving" is the consumer thinks they're getting a deal — when they're probably buying something they don't need — and it almost always benefits big business.
"Spaving" – spending more to save – is an old "trap" with a new name hitting grocery stores, retailers and even online gambling.
Though there are times "spaving" is worthwhile, one personal finance expert outlined how consumers can avoid becoming the "victim" of the marketing ploy.
"They're trying to make profits," adds Kuderna. "That's why they come up with these things — they know what consumer behavior is and what people are going to fall prey to."
Kohl's department store during the holiday season shopping. (Photo by James Leynse/Corbis via Getty Images)
Some of the most prominent "spaving" deals are promotions like "buy one, get one," in-store "cash" to use on future purchases, free gifts or even programs like "subscribe and save."
Common "spaving" tactics include BOGO, flash sales or free gifts.
"There's definitely a lot of research behind the idea that human beings are not only impulsive, but we get this dopamine rush, we get this, craving, if you will. We get this euphoria when we feel like we've gotten a deal of some kind deal," Lynnette Khalfani-Cox, the CEO and co-founder, Askthemoneycoach.com said.
Just remember to check in with yourself. "Ask yourself, do I need this? Am I actually going to use it? And was it even in my plans to buy something like this in the first place? Because the power of suggestion can be enormously powerful," Khalfani-Cox said.
These are tips to consider ahead of the all the back-to-school sales.
FOX Business contributed to this report.