Spending by Color

© Apr 12, 2023 National Financial Education Centerat Debt Reduction Services Inc. (Boise ID)

www.NationalFinancialEducationCenter.org

Spending by Color

Why We Choose to Spend In Our Own Colorful Ways

Welcome to

http://www.hulu.com/watch/1389/saturday-night-live-dont-buy-stuff

#2© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org

Housekeeping

• Silence Cell Phones

• Water

• Restrooms


Why We’re the Experts

Nationwide Nonprofit since 1996Nationwide Nonprofit since 1996

Counseling 1,000s of Debtors AnnuallyCounseling 1,000s of Debtors Annually

Hundreds of Classes Every YearHundreds of Classes Every Year


Course Overview

Spending

Evaluate Spending Tendencies

Identify Spending

Motivations

Your Hidden

Spending Habits


Evaluation

Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.

#1Learn to play a musical instrument

1 2 3 4 5

DEFINITELY NO MAYBE DEFINITELY YES


Evaluation


#2Buy a Rolex

1 2 3 4 5



Evaluation


#3Let spouse decide how to spend it

1 2 3 4 5



Evaluation


#4Always insist on paying for your friend’s dinner when you go out

1 2 3 4 5



Evaluation


#5Donate to a public library

1 2 3 4 5



Evaluation


#6Go skydiving, rappelling, rock climbing, or do other extreme activity

1 2 3 4 5



Evaluation


#7Hire a professional to help you with your finances

1 2 3 4 5



Evaluation


#8Upgrade your cell phone to the latest model with all the bells & whistles

1 2 3 4 5



Evaluation


#9Purchase life insurance policy to cover your family in case you pass away

1 2 3 4 5



Evaluation


#10Lend money to a co-worker

1 2 3 4 5



Evaluation


#11Contribute supplies to a local school

1 2 3 4 5



Evaluation


#12Buy a ski boat or all terrain vehicle (ATV)

1 2 3 4 5



Evaluation


#13Pay for a gym membership or a home gym

1 2 3 4 5



Evaluation


#14Update my wardrobe to be more stylish

1 2 3 4 5



Evaluation


#15Give gift to a loved one “just because”

1 2 3 4 5



Evaluation


#16Throw a neighborhood party

1 2 3 4 5



Evaluation


#17Give to a charity or a church

1 2 3 4 5



Evaluation


#18Buy yourself a season ticket to a ski resort, amusement park, sporting event..

1 2 3 4 5



Evaluation


#19Take an adult education class (such as pottery, cooking, art, finance, health…)

1 2 3 4 5



Evaluation


#20Buy new rims or a new paint job for your vehicle

1 2 3 4 5



Evaluation


#21Purchase playground equipment for children in my family

1 2 3 4 5



Evaluation


#22Give a friend a gift certificate to their favorite retail store

1 2 3 4 5



Evaluation


#23Do volunteer work and cover your own expenses

1 2 3 4 5



Evaluation


#24Get a new gaming system

1 2 3 4 5



Evaluation


#25Join a book club and build your personal library.

1 2 3 4 5



Evaluation


#26Cosmetic improvement or surgery

1 2 3 4 5



Evaluation


#27Give an anonymous gift to a family member

1 2 3 4 5



Evaluation


#28Buy something a friend is selling even if you don’t need it or want it

1 2 3 4 5



Evaluation


#29Give to a nonprofit fundraising event

1 2 3 4 5



Evaluation


#30Purchase the latest iPod and regularly purchase songs off the Internet

1 2 3 4 5



Evaluation

Add columns in Results Sheets


Evaluation

Transfer Results to Reporting Form

Please answer 9 anonymous demographic questions


Spending Color Wheel














Typical Expenses

Achievement

Red


Key Words & Phrases

Achievement

Accomplishment

Satisfaction

If it’s worth doing,it’s worth doing right.

Skill

Red


Tips and Suggestions

Achievement

Red


Admiration

Typical ExpensesPurple


Admiration

Key Words & Phrases

Image

Brand Name

I wouldn’t be caught dead in…

Purple


Admiration

Tips and Suggestions

VALUESvs.

VALUABLES #1

#2

#3

Purple


Relationship

Typical ExpensesBlue


Relationship

Key Words & Phrases

Other

Others

It’s not about me…

Blue


Relationship

Tips and SuggestionsBlue


Approval

Typical ExpensesGreen


Approval

Key Words & Phrases

Please!

Status

What would the neighbors think…?

Impress

Green


Approval

Tips and SuggestionsGreen


Responsibility

Typical ExpensesYellow


Responsibility

Key Words & Phrases

It’s my duty/job…

Make a difference in this world…

If not me, then who?

Yellow


Responsibility

Tips and SuggestionsYellow


Amusement

Typical ExpensesOrange


Amusement

Key Words & Phrases

Fun! Fun! Fun!

Me! Me! Me!

What a Rush!!!

Orange


Amusement

Tips and SuggestionsOrange


It’s not how much you

EARN, it’s how much you

KEEP!

Importance


Cross Colors Known to

Advertisers

Subtle & Programmed

Universal Spending Behaviors


• Face the Factors:–Keeping up with the

Joneses.–Values vs. Valuables

• Suggestions & Tips–True worth is inside, not in

stuff.–Ask: “Is this practical?”

Compensatory Spending


• Face the Factors:–You feel unappreciated.–You want to celebrate!

• Suggestions & Tips:–Budget “Fun Money”–Write yourself a note of

appreciation

Entitlement Spending


• Face the Factors:–Habits or Addictions–Can impact others

• Suggestions & Tips:–Replace with cheaper

habit/hobby– In cases of addictions, seek

professional counseling

Habitual Spending


• Face the Factors:– “But it’s on sale!”– Speak in “Percentages”

• Suggestions & Tips:– “Sales Come and Sales Go, but

Your Money Only Goes Once.”– “Sales are not Opportunities to

Save but Occasions to Spend.”

Sales Spending


• Face the Factors:–Pressure to give–Can involve guilt and remorse–For family, friends or strangers

• Suggestions & Tips:–Sentiment instead of Price–Give service, your time, an

experience

Obligatory Spending


Special Spending Behaviors

Impulse Spending

Convenience Spending


• Face the Factors:– Usually your LOWEST scoring color– Put off till last moment– “Time is money!”

• Suggestions & Tips:– More Planning– Shop on the same day each week.

Inconsistency is the foe.– Take only the cash you need.

Convenience Spending


• Face the Factors:– Usually your HIGHEST scoring color– Whims– The Senses– Store Layout

• Suggestions & Tips– Sleep on large purchases– Spending Plan (Goals Card)– Stick to Your List– Don’t Shop “for Fun!”

Impulse Spending


• Linda and Hal– Every Saturday morning, they go

“Garage Saling!”– Love good deals– $20 to $50 worth of “stuff” they don’t

need.

• Their spending behavior(s)?

• Suggestions?

Examples


• Lisa– Under the gun at work– Pulling more than her share– She “deserves” something special– Buys new outfit

• Her spending behavior(s)?

• Suggestions?

Examples


• Alan buys…– biggest tires, shiniest roll bars,

extra fog lamps, loudest speakers, brightest paint…

– Gives sense of fitting in

• His spending behavior(s)?

• Suggestions?

Examples


• Lorenzo– fast food for breakfast (in a

hurry)– lunch out with coworkers (no

time to make bag lunch & there’s peer pressure)

• His spending behavior(s)?

• Suggestions?

Examples


•Other poor spending behaviors?

Examples


• Financial goals = roadmap• Review spending plan• shopping lists (“live by a

menu”)• Know spending limit

before going to store• Keep good records for

review

Disciplined Spending


3. List obstacles4. Plan to overcome

obstacles5. Establish value

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yyoouu22 1.

1 “What is stopping me from overcoming this poor habit?” “Why am I not spending like I know I should?” 2 Regularly evaluate the worth of this process to you? If it’s questionable, change the goal or modify the personal value.

1. Identify behavior(s) to improve

2. Set deadlines

My name’s Todd and I’m a Convenience

Spender

4 weeks from today

Weekly Planning every

Tuesday at 7:00 pm

Too many demands on my

time to shop regularly.

I hate feeling like I get

nothing done!

5-Step Program


Pennywise Pound Foolish


• Too often we pinch pennies on the small stuff but don’t give the big purchases a 2nd thought.– Home Buying

Big Ticket Purchases


• Too often we pinch pennies on the small stuff but don’t give the big purchases a 2nd thought.– Home Buying– Car Buying



• Too often we pinch pennies on the small stuff but don’t give the big purchases a 2nd thought.– Home Buying– Car Buying– Appliances and Furniture



• Too often we pinch pennies on the small stuff but don’t give the big purchases a 2nd thought.– Home Buying– Car Buying– Appliances and Furniture– Vacations

Where we’d all like to be

NOW!


© Apr 12, 2023 National Financial Education Centerat Debt Reduction Services Inc. (Boise ID)

www.NationalFinancialEducationCenter.org

Thanksfor Coming!

We are ALWAYS available to address your questions and

concerns.

And on that note… Enjoy

Your Day!

Economy & Finance

Spending by Color