Ten Commandments for Smart Consumers

In honor of Consumer Protection Week last week (March 4th-10th), MSNBC columnist and blogger Herb Weisbaum, The ConsumerMan, posted his ten commandments for being a smart consumer: Life Inc.: The Economy and You. He is confident that if you follow his “commandments,” then you will have a lot less trouble with whatever you buy. His commandments all boil down to two common themes: Preparation and Prevention.

Preparation
A smart consumer is a prepared consumer. And to be prepared as a consumer is to go against every natural purchasing instinct that we possess. We see something we want (e.g., a new outfit, game, car, computer, etc.), and we want to buy it right now, without doing any preparatory work. Now, I am all for the occasional or, better yet, rare impulse buy; but this should be an inexpensive item ($25.00 or less), for which pre-purchase work would have been unnecessary. Under $25, it may not be worth your time to do the research; if you’re making the same (or similar) cheap buys repeatedly, however, you should consider finding out which items are better and less expensive.

Prevention
Smart consumers always find ways to protect themselves when problems arise. This is much tougher than being an idle or passive consumer.


Here are our 3 easy tips for becoming a prepared consumer, which will help you to follow the ConsumerMan’s 4 Commandments that deal with preparation.

1) Just Say “No” to Impulse Purchases.
Impulse buying will get you every time. We all know how it works. You have the cash or that new debit card ready and waiting in your wallet, and you see something that you just have to have. Our advice is that you WALK AWAY for at least one day. If you still want it tomorrow—or, even better, next week—go back and get it. But implementing the one-day rule will save you a lot of heartache if you sometimes wake up with buyer’s remorse but all sales were final.

2) No Cash, No Consumption.
If you have to borrow money in any way (e.g., put it on a credit card because you don’t have the cash right now; or call your parents for a loan; or ask your friends to spot you the money), then WALK AWAY. You can always come back later with the cash you need if you still want to buy.

3) Make and Follow a B.B.P. (Big Buy Plan)
It doesn’t matter if you are spending your allowance money, money you earned on a part-time job, or from a full-on career: every consumer can benefit from a B.B.P. Make a checklist of simple steps you must follow before you can make a larger purchase. The plan is simple to create, but hard to stick to in the beginning. Don’t give up on following your B.B.P!

Here are 3 easy tips for learning to prevent problems. They will help you to follow the ConsumerMan’s 6 Commandments that deal with prevention.

1) Questions are Encouraged.
If the deal or sale sounds too good to be true, it might be. Ask questions about the offer, conditions, policies, and warranties… Look up reviews and get other consumers’ opinions.

2) Protect Your Privacy.
If you don’t guard your private information carefully, someone else will likely take advantage of you. Be careful where you write down your PIN number for your debit card, what Web sites you give your Social Security Number to, and how many applications you fill out for rewards cards. You may think that identity thieves wouldn’t want your information because you are younger or don’t make a huge income, but you would be wrong about that; anyone can be taken advantage of.

3) Receipts Are Resources, Not Rubbish.
In all matters of consumption, paperwork (e.g., warranties, receipts, contracts) is important. All offers of protection associated with your purchase (e.g., return, replacement, and repair policies), regardless of size, are only as good as the paper on which these offers are written. If you throw away the receipt for your prom dress or new gaming system, then you are out of luck if you need to take it back.

Author: Nicole Stork-Hestad, Ph.D. Student, Family Sciences, University of Kentucky
Source: Weisbaum, Herb. (2012, March 6). Ten Commandments for Being a Smart Consumer. Life Inc. on Today. Retrieved from http://lifeinc.today.msnbc.msn.com/_news/2012/03/06/10585108-ten-commandments-for-being-a-smart-consumer.