Coupons May Not Be Saving You Money

Do you use coupons? If you are a “smart” money manager, you do, right? Well, maybe not. Consider this tidbit from Money Magazine’s May 2005 issue:

“Research suggests that coupons actually cost shoppers money. Tests of a new supermarket scanning gizmo in Syracuse, NY last fall showed that people who used coupons spent 8% more than folks who didn’t. This follows a 2002 study co-sponsored by Washington University in St. Louis that found that shoppers spent an extra $8 on unplanned luxury items for every $1 coupon they used. ‘Steak, flowers, candy — people were treating themselves because they felt good after using coupons, and of course they spent a lot more on the treats than they saved on the coupons,’ says marketing professor Ambar Rao, one of the 2002 study’s authors. Coupons can save you money on some things you buy a lot, but proceed with caution.”

Interesting. What do you think?

For more money tips, visit Free Money Finance.

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