Are You a Schizophrenic Consumer?
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This morning’s “Today Show” featured a segment about “schizophrenic consumers.” With tough economic times and high unemployment, many people are shopping at the dollar store for basic necessities at the same time that they are putting lattes and luxury goods on their credit cards. Pscyhotherapist Robi Ludwig explains that many people use “retail therapy” as a way to feel better about themselves, particularly if they are feeling depressed about not have a job, or having to cut back on other expenses.
I can relate to splurging on a latte, but I always pay cash. If I don’t have the $2.50 for my Starbucks, I don’t buy it. I cannot relate, however, to putting a Coach purse on my credit card if I am struggling to buy toilet paper and groceries. To me it is a question of priorities. If I can’t pay my rent, I have absolutely no business going out to eat, or buying designer clothing.
Economist Diane Brady makes an interesting point in the “Today Show” segment, when she argues that post-9/11, Americans have been told that it is their patriotic duty to go shopping. The American economy is built on consumer spending – marketing campaigns that appeal on Americans’ “love of country” are great for big business. But when the credit industry is in the shitter, is it really a good idea to continue encouraging consumers to pile up their credit card debt? When the credit card industry approaches Congress asking for a bailout, I’m going to have even less sympathy than I did when the banks approached Congress with their hats in hand. Don’t spend more money than you make. It’s simple budgeting advice.
What about you? Do you like to splurge on things like coffee and designer clothes, while you skimp on grocery expenses at the same time? What’s your take on the idea of “schizophrenic consumers?” I’d love to get your take on this trend.
I agree with Diane Brady.
I also think that we are receiving conflicting messages about spending. Before the financial collapse we were pushed to buy, buy, buy in order to be a good citizen. After the collapse we are supposed to consume as much as possible within our means. At the same time we hear news stories about how Americans are slowing the economic recovering by saving money or spending less than usual. So we are supposed to consume without going into debt AND we are not supposed to save money. No wonder we’ve become “schizophrenic” consumers.
Here’s one incredibly stupid thing I do: I withdraw cash and I save it, and save it, and save it…but then I use my debit card to blow money on just about everything else. It is remarkably stupid. And schizophrenic.
I only go to the movies every Tuesday courtesy of my cable company, but then blow 11 on the biggest popcorn and soda. But I make it my dinner. To me, that oily buttery joy is half the reason to go to a movie!
Kristine, I can definitely relate. We go to the $2 theater to see a show, and then spend $10 on concessions – just like you. At least it’s still cheaper than paying full price at the regular theater. I don’t want to see any movie bad enough to pay $10 a person (or more).
Clint, you’re hilarious.
Transgrad, that’s a little bit more philosophical than we usually get here at QC. ;^)
Hey Serena!!
If I want to watch a movie it comes off the shelf…and most of them are bought used from Amazon or from the Thrift Store.
Now if you want popcorn….cook it in real butter instead of oil then buttering it….yes you have to deal with little specks of caramelized milk sugars all over the popcorn but it will all be very nicely butter flavored without adding all that extra fat and calories.
~ Roland
Roland, always good to hear from you! I love homemade popcorn, and you must have a big movie collection!
I also think it’s that bounce back we sometimes feel when we’re tightening the financial belt. We get so tired of scrimping and saving (or we see a slight improvement from it) and backlash into our old spending habits. It’s kind of like eating a HUGE slice of cake or grabbing $10 of fastfood, about 1 week after starting to try to improve your eating habits. It’s schozphrenic and bad for you, but you’re basically experiencing a bump in the road towards lasting change.
That’s assuming you’re trying to make a lasting change in your habits and not just penny wise and pound foolish. 😉
Really great point, Jaime.