Personal Finance

Wise money management skills do not come easy for many people. Most of us never received formal education in budgeting, saving, and spending. Thankfully, the 12th grade students in Personal Finance are being introduced to the basics of financial literacy. Many of the topics we cover are suggested by the National Endowment for Financial Education (NEFE), an independent nonprofit organization committed to educating Americans about personal finance and empowering them to make positive and sound decisions to reach financial goals.


Recently, NEFE commissioned a study examining impulse buying which showed that 80% percent of American adults say they’ve made impulse purchases in the past year. The NEFE survey found that 66 percent of adults who have made an impulse purchase this year say they later regretted that decision. Controlling our spending impulse is an important lesson to learn. Perhaps all of us would benefit from reviewing the following tips from NEFE.

~Jan Schein
CFO and Personal Finance Instructor

Take Control of Your Spending with These Tips:

• Prioritize. Before you head to the store, make a list and stick to it. You will avoid falling prey to enticing retailer displays and coming home with all sorts of stuff you don’t need.

• Return. If you end up buying something you don’t need, return it immediately. If you feel that you are unable to return to the “scene of the crime” without either spending more or exchanging for a lower-priced item, ask a spouse or friend to run the errand for you.

• Save receipts. Keep all receipts in a designated pocket of your purse or checkbook for easy recovery.

• Keep the tags on. Resist the urge to rip off the tag on an item after you buy it. It could have a defect you don’t see in the store, or you could decide you don’t like it the next day.

• Be patient. While shopping, if you see something you like, leave the store for 30 minutes. You might find you don’t want the item as much as you thought.

• Use cash. Leave your credit cards at home, and shop with cash. That way you know you won’t have enough money to buy extra stuff, even if you are tempted.

• Find a buddy. Shop with a trusted friend or relative who will tell you “no” if you feel the urge to spend needlessly.

• Avoid retail therapy. If you have had a bad day, the last thing you should do is go shopping. Find another activity, such as exercise, to make you feel better.