Spaving

Spaving is a marketing strategy where consumers are encouraged to spend money to gain access to savings. Common spaving tactics include discounts, sales, and promotions such as free shipping at a certain threshold and buy one, get one free.[1] The term is a portmanteau of the words spending and saving.[2] Spaving has been popularized by online retailers and social media.[3]

Spaving has been criticized as a financial pitfall causing consumers to purchase more than needed and creating excessive buying habits.[4][5][1]

Consumers engage in spaving due to fear of missing out and loss aversion.[6] Consumers who excessively engage in spaving are referred to as spavers.[7]

References

  1. ^ a b Dickler, Jessica (6 May 2024). "Americans can't stop 'spaving' — here's how to avoid this financial trap". CNBC. Retrieved 19 May 2024.
  2. ^ Nair, Deepthi (22 December 2023). "What is spaving and how can you avoid this financial trap?". The National. Retrieved 19 May 2024.
  3. ^ "Americans can't stop 'spaving' — here's how to avoid this financial trap". TODAY.com. 8 May 2024. Retrieved 19 May 2024.
  4. ^ Coggins, Madeline (14 May 2024). "Finance expert sounds alarm over 'spaving' trend: An old 'trap' with a new name hitting your wallet". FOXBusiness. Retrieved 19 May 2024.
  5. ^ "Breaking down 'spaving,' does saving money by spending it work?". Yahoo Finance. 17 May 2024. Retrieved 19 May 2024.
  6. ^ Cerullo, Megan (13 May 2024). "Think "spaving" — or spending to save — can save you money? Think again. - CBS News". www.cbsnews.com. Retrieved 19 May 2024.
  7. ^ Bologna, Caroline (9 November 2023). "Are You Guilty Of 'Spaving'? Here's How To Spot The Toxic Spending Habit". HuffPost. Retrieved 19 May 2024.
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