Canadian Finance Blog

Posted: 28 Dec 2011 02:00 AM PST

Shopping can be addictive. Everyone knows that there’s shopaholics out there. There’s the larger than life, cartoon style shoppers, who spend all day spending money and never thinking about their actual purchases, or the woman who has 30 too many pairs of shoes, or the guy who buys a new car every 6 months. There’s a rush when you make purchases, and some people get addicted to the feeling. What most people don’t realize, however, is that almost all of us are a little bit addicted to shopping.

It’s not in a big way, it’s in the little things, the things that you may not even notice. When you start to spend money, it lubricates your wallet. Suddenly it’s easier to make a purchase when you’re already spending money.

Check Out Stands

Take the check out stand, for example. Any classic grocery store will have a candy shelf, or magazine shelf, right next to the checkout. That way, you’re forced to take a look at a bunch of small, easy purchases right as you’re about to pull out the wallet. It is so easy to think, “Well, I’m already paying $80, what’s one more dollar for a pack of gum”, or “Hm, that magazine article about Lindsay Lohan is interesting, and I don’t have time to read it here”. I’m not a compulsive shopper, but I have bought a couple candy bars here and there when I see a good deal or have a particular craving. The check out stand method is not just at grocery stores though. Auto part stores, clothing stores, gas stations, any place that has a checkout stand has small, cheap purchases that can quickly add to your total. They are not there for your convenience, they are there because it’s easiest to pay for when you’re already there to buy something else.

Add Ons

Add ons are a salesman’s best friend. Take car shopping, for example. You’re already set to purchase a car, you’re about to sign the final papers, when all of a sudden, there’s a few extra options that you can add to your car package. Floormats, racing pedals, luggage racks, the list goes on. Compared to the cost of the car, they’re not a lot of money, but they are where the salesman can make a lot of profit. Purchasing a phone? Oh, you’ll probably need a case, some ringtones, an iTunes gift card and a test messaging plan. Want to sign up for internet? Don’t forget higher data caps, anti virus programs, or additional webspace. Need a bike? Do you have a helmet, gloves, water bottle and a reflective light? Add ons are there not just because they “make sense” to add to the purchase, they’re there because it’s easy to add to the purchase when you’re already buying in.

Micro Transactions

Micro Transactions are where each payment, in and of itself, is small. Add them up, however, and it can be a large cost. The problem with micro transactions is that it gets you used to buying things. The Steam Sales, which I have written about, are horrible for this. Yes, you can get a lot of really good games for a very low price. But each day, you might only get a game or two, for about $5. It’s not a lot of money, but it gets you used to making the purchase, it gets you used to giving Steam your credit card information, and it gets you used to spending a little money every day. It’s dangerous to live like that. Long distance phone calls, free to play video games, on-demand movies and TV shows, the list goes on. There’s so many ways your money can be taken from you a dollar at a time. The danger is not in the initial loss of money, though, it’s in getting addicted to making purchases.

Are you addicted to shopping and just not know it? How do you prevent yourself from getting used to shopping?