Turns out, love makes us totally stupid with money
We all know that love is blind, but did you know love is also bad with money?
A new study published in the journal Judgment and Decision Making found that when consumers are shopping for emotional events, like a funeral, a wedding, or a baby shower, they’re more likely to spend big rather than shopping around for a good deal.
“It just doesn’t feel right to be negotiating lower prices on a casket for your beloved grandfather,” Professor Peter McGraw, a lead author on the paper, told CNBC.
This news isn’t exactly, well, new, nor is it necessarily bad. When we care about something, it makes sense that we want to go that extra mile and we can do that with an extra dollar (or ten). But this kind of behavior does cost a person more and more over time with $15 extra dollars here or $100 more there really adding up. It’s the reason nearly 50 percent of couples go way over their set wedding budget and why, in part, funerals end up costing so much.
So, what can shoppers do to protect their wallets when emotions are at play?
Professor McGraw suggests shopping with someone who isn’t as emotionally involved as you are. Why? Well, being one step removed from the emotional situation means your friend or family member will be more clear-headed and help you keep your own promise to make a wallet-friendly choice.
If you can’t find someone to help you out, there’s always Plan B: Sleep on it. In the moment, you may feel pressure to purchase that more expensive dress or that more expensive present, but if you take even a day or two to make your decision, it can make a world of difference. And your bank account will thank you.