Economy class: why people spend money on unnecessary purchases
Most Russians spend about a quarter of their money on unnecessary purchases. From the point of view of economists, this is because people have poor financial literacy and have not really learned how to manage non-cash funds. How to avoid impulse purchases, why it is important to divide the budget into personal and family, as well as whether you can save money when paying the mortgage - in the material "Izvestia".
Keep yourself in control
Experts see the root of the evil in the fact that Russians are poorly acquainted with financial literacy, do not know how to plan a budget and do not navigate the marketing traps. Elena Potryasaeva, a lecturer at the Department of Economics of the Russian Technical University MIREA, advises to avoid impulsive purchases in the first place.
- It is not in vain that marketers study for several years and learn all kinds of techniques and tricks to make the buyer make spontaneous purchases. For example, very often merchandisers in stores place the most expensive goods at eye level, and more profitable ones are located on the lower shelves, - comments the expert.
Attractive aromas, such as fresh baked goods, also encourage people to make unplanned purchases. Music in the sales area also influences the subconscious mind: dynamic tunes encourage you to make a purchase faster.
From the economist's point of view, it is necessary to take control of the syndrome of lost profits, that is, do not fall for various promotions and discounts.
- Remember that such promotions will always be there. If you do not need the goods now, if you were not planning to buy this month, for example, another lipstick, but received a promo code, it makes no sense to buy it, just to use this promo code, - says Elena Potryasaeva.
The economist draws attention to another subtlety. If earlier a person could refuse an unplanned purchase, simply because he did not have a large sum in his wallet, but now the money is always at hand - on a card or in a mobile application. It is very important to track income and expenses, analyze the categories of already purchased goods to understand how necessary certain things are.
When planning your budget, the expert recommends that you immediately take into account the amount you need to spend on essential goods, such as food, utilities and communications. And decide how much you are willing to spend per month on secondary goods and services: clothes, cosmetics, household chemicals, subscriptions to online services, etc.
- I also recommend dividing your budget into a family budget and a personal budget in order to save money and avoid waste. Family implies food, household goods, large purchases that need to be coordinated with the family. In the personal budget you include your own expenses and control such purchases yourself, - explains Elena Potryasaeva.
If personal funds quickly run out, you should not take money from the "common purse". You just need to review your spending.
- An effective method is the rule of six jugs. It involves dividing your income into six parts, where the percentage of your income is how much of it you spend on necessities, entertainment, charity, etc. If you run out of funds from one category, you cannot borrow from another jug," continues Elena Potryasaeva.
Control and economy
There is no point in shopping or browsing online marketplaces if there is no specific purpose. For example, when there is nothing to do or overcome by sadness. Shopaholism, like any other compulsive behavior, is a destructive, unproductive way to compensate for their anxiety, says clinical psychologist, head of the rehabilitation program of drug and psychiatric Clinic Dr. Isaev Tatiana Meteleva. In each individual case it is necessary to deal with individually: from where there is tension and anxiety, with which a person does not know how to work in a different way and compensates them with uncontrolled, uncontrollable purchases.
If there are no problems of this nature, the economist advises to keep a scrupulous record of absolutely all expenses. This will help not to throw money around. It is the everyday expenses that seem insignificant that hit the pocket the most.
- Pay attention to commissions for bank transfers, subscriptions to unnecessary services, overpayment for delivery or the same spontaneous expenses,- says Elena Potryasaeva
Before buying, the economist advises to compare prices for the product of interest in different stores, including marketplaces. You should also study the terms and conditions of services.
- Carefully read contracts and tariffs before signing them. Pay attention to hidden fees, penalties for early termination and other conditions. For example, to choose the best tariff for mobile communication, you need to assess how often you talk on the phone and whether you need unlimited Internet if you use the network mainly at home, - suggests the economist.
If it comes to a thing that you need only occasionally, the expert recommends that you rent it or ask your friends for it.
How to calculate the mortgage more favorably
Without financial literacy can not do without, when it comes to paying the mortgage, is sure assistant professor of the Department of Economics RTU MIREA, PhD in Economics Olga Grigorenko. In particular, it does not hurt to know when it is profitable to pay it off early, and when it makes sense to stick to the schedule, and the excess money put in the bank at interest.
- The case of each borrower should be considered individually. Such a decision is influenced not only by the situation in the country and the percentage of the refinancing rate, but also by individual parameters, such as the period remaining until the full repayment of the loan, the rate on the loan, the method of interest accrual and a number of other factors, - says Grigorenko.
In the first third of the term of the mortgage is profitable to throw all the forces to its repayment, if the method of accrual of payments annuity. With this option of calculation of the total amount of debt, including the body of the debt and accrued for the estimated period of use of the loan interest, divided into equal parts - payments on the loan. Since in the first months a smaller part is spent on repayment of the principal debt, while the larger part is spent on interest, it is advantageous to make early payments and repay the principal debt.
- In this case, you should pay off the mortgage as quickly as possible, because the entire amount of early payments you make goes to pay off the loan body. This means that in the total amount the bank will charge less interest, and the total mortgage payment will decrease, - comments Olga Grigorenko.
When you make any amount above the schedule, it is all directed to repay the body of the debt, and therefore automatically reduces the overpayment of interest. With partial early repayment of the mortgage can choose to reduce the term or adjust the monthly payment to ease the burden on the family budget or pay off faster.
When the mortgage term is already quite long and the interest rate remains fixed, sometimes it makes sense to refuse early payments. It is more interesting to put the surplus on a deposit at high interest rates, thus "saving" for the subsequent repayment of the mortgage.
- Inflationary processes, as a rule, lead to an increase in the refinancing rate, and interest on deposits grows, significantly overtaking the loan rate. If the interest on the deposit is 4-5% higher than the mortgage rate, it becomes unprofitable to repay the mortgage early, - Olga Grigorenko continues.
How to teach children to count money
In order to understand all the subtleties, Elena Potryasaeva recommends to start teaching financial literacy from a young age.
- Before children make their own purchases, it is necessary that they understand the principles of handling money. It is recommended to make a list of necessary goods for the next trip to the supermarket and entrust the child to independently select and purchase these products, - says the expert.
At the same time, it is important to teach children to scrutinize price tags, compare the weight and cost of different options to understand how to make the most profitable purchase.
- It is necessary to explain to the child that saving on the price of one product will allow to get more change, which can be spent on additional goods. It is important to note the priority of purchasing necessary products over desired products," emphasizes Potryasaeva.
The child should pay independently at the cash register, get the change and the receipt under the control of the parent.
To organize the personal finances of a minor, the expert advises using two piggy banks. It is also possible to take transparent jars. One of which should be labeled "for current expenses" and the other "for dreams". The first piggy bank stores funds for things needed "here and now". In the second one, the child saves money for a new bicycle, for example. Gradually he realizes that money runs out quickly if he spends it on unnecessary purchases.
The economist advises that financial literacy education should be supported by personal example. In any case, children learn patterns of behavior by watching their parents.
- It happens that adults teach about the need for a balanced approach to purchases, but they themselves are prone to impulsive spending. Or they insist on a careful attitude to money, but at the same time negligently scatter coins around the house. Such actions contradict the words and will not give the desired result, - says the expert.
Poverty is not a vice
Tatiana Meteleva also emphasizes that all people take from the family patterns of behavior (patterns). This also applies to handling money: financial literacy, like any other skill, is a developing skill that can and should be learned. If a person does not know how to manage money, it means that this skill was not taught in childhood and needs to be developed in adulthood.
- Today there are a lot of different programs and applications, with the help of which you can control your expenses. This is done systematically and progressively, just as we control some other behavior, such as eating, " says the clinical psychologist.
It is important for a person to realize that his financial problems are caused by improper budget planning. And then he will learn to act correctly.
- Initially, parents teach children financial literacy. If they themselves know how to properly manage the family budget and personal money, as well as discuss it with children, then children will be more financially literate, - says the clinical psychologist.
According to the expert, the child has not yet developed prognostic functions, so if you give him a significant amount of money, he will not understand how to dispose of it. Most likely, he will spend it all on candy bars on the first day, without thinking about what will happen tomorrow.
- Thus, financial literacy is formed from two main prerequisites. The first is the example of parents. The second is the personal experience that a child has when he or she starts to receive pocket money," comments Tatiana Meteleva.
The clinical psychologist considers it normal if, for example, once a month the family gathers to discuss a financial issue. Parents in the presence of children plan money spending for a month, a year and so on, prioritizing. It is important to show the child the first-priority expenses, such as paying for housing, utilities and education, as well as solving household problems.
From the expert's point of view, it is very important how parents help children to gain experience in spending money.
- For example, at first they give the child money once a week, and later increase this interval to once a month. Then children have an opportunity to plan their budget based on their experience. Let's say that he spent at once all that he received for a week or a month, and was left without pocket money. Then the child will understand what thoughtless spending leads to, - explains Tatiana Meteleva.
If parents scold the spender, and then give a new financial tranche before the time, the child will not fix the connection "action - consequence". He will think that money somehow magically falls from the sky. Therefore, the position of adults is important. They should be consistent and teach the child through explanations, the expert emphasizes.
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