Are you concerned about young people’s spending habits?

An esteemed psychologist has issued a warning against girls and young women watching “haul videos.” A haul video is an Internet-posted video of a shopping spree. The “vlogger” (video blogger) reports every detail of her purchases. Sounds harmless? Apparently not. “The most popular hauls have been viewed by staggering numbers of people, even into the millions,” reports Dr. April Benson, an expert on shopping addiction. “Some of the vloggers are getting addicted to making these videos. At least one 16-year-old is currently being home schooled to allow her more time to haul more stuff, and the 7-year-old sister of another vlogger is taking an early lead in mesmerizing second-grade fashionistas. Retailers are enabling the most popular vloggers by sending them merchandise to review or giving them gift cards as compensation for showcasing their products.”


You may think your child’s shopaholism and “haul videos’ are cute. You may change your mind if you find out she can’t stop spending your money and now the world knows it before you do.

Shopping addiction specialist April Benson, Ph.D fears that, “Both the makers and the watchers of haul videos are buying into the dark, destructive, and deeply false message these videos embody: that whoever said money can't buy happiness just didn't know where to shop.” She tells how, in her book To Buy or Not to Buy: Why We Overshop and How to Stop, to demagnetize the pull to shop. The pull comes from six powerful magnets: malls and stand-alone stores, internet shopping, television commercials, television shopping channels, catalogs, and magazines.

Parents need to keep an eye on their daughters’ shopping habits. Don’t just drop the girls off at the mall to entertain themselves with their friends. It’s not a safe place for them economically or socially. It’s not easy these days, but you need to control what your children watch on television. Monitor what they look at and post online. Don’t have catalogs and shopping-oriented magazines in the house. As a result of your concern and vigilance, your child will perform better in school and handle their money better in life.

Studies indicate that the 50 million young adults in our country tend to be more optimistic about the economy than their parents. They are confident, upbeat, civic-minded, and open to change. A Pew Research Center study says that the Millennial Generation Y (currently teens and twenty-somethings) will also be the most educated generation in American history.

Unfortunately, nearly one third of people in their 20s and 30s are receiving financial support from their family and friends. College loans are partly to blame. While Americans have been trimming their credit card debt, students have been borrowing more than ever. Why? For several reasons. One reason is that college costs have increased more than 25%. Another reason is that students’ expectations and financial training need to be brought in line with reality. Amazingly, total student loan debt now exceeds credit card debt, with more than $850 billion outstanding. Students need to weigh their loans carefully and learn how to handle their money. Their future depends on it.

Heidi Clingen is a long-time resident of Stevenson Ranch. She and Samuel K. Freshman are authors of The Smartest Way™ to Save, Why You Can’t Hang on to Money and What to Do About It. They offer only their opinion, which does not constitute professional, financial, or legal advice. To receive a copy of The Principles of Financial Independence or submit questions, email them at Heidi@TheSmartestWay.com

Frugality is in Fashion

Evidence of the fashionableness of frugality abounds. One example is Money Clubs that act as accountability groups. In a group setting, friends help set their personal financial goals and decide on steps to take. Last year, New York Times columnist MP Dunleavey formed a debt-reduction group for women, cleverly named Women in Red. Consumers have quit “blowing off” small, recurring expenses. They have started to realize what those expenses cost in their totality. People have discovered that they are no longer “too proud” to shop at discount stores and dollar stores—where business is booming. Upscale retailers are getting into the frugality spirit, too. Grocery stores such as Whole Foods now offer coupons and weekly sales, Starbucks offers $1.50 coffee, and MacDonald’s has a “luxury” coffee that is giving Starbuck’s some competition. Old-fashioned, classic toys like Legos and Rubik’s Cubes are selling better than new, flashy toys. One time-honored indulgence that appears to be recession-proof and appealing to all ages: chocolate.Thank goodness, some things never change.

Fashionistas are adopting the trendier practice of being “frugalistas” when they shop. Shopaholic used to be considered cute. But times have changed. Those who can clutch the reigns and get their spending under control are being forced to do it, and quick. Nevertheless, the economy is peeling back the curtain on compulsive shopping. What is revealed is the unattractive side of the term shopaholic. Compulsive shoppers have real problems. They go on shopping binges, they chronically and repetitively shop, and they buy for short-term satisfaction that leads to long-term damage to themselves or others. Shopping binges usually result in a hangover of economic nausea, relationship headaches, and buyer’s remorse. Governmental spending binges do too, but that is another topic.

The new shopping term is “surgical shopping.” It’s also called “appointment shopping” and “targeted shopping.” It all means that shoppers are becoming increasingly selective. So if you’re finding yourself using the mall for exercise and making more tactical strikes with your shopping, you’re not alone.

How did Americans become addicted to shopping? They got confused about what true value is. Calculating true value can be difficult. We buy things that hold perceived value or meaning for us. What is the value, the meaning, behind our purchases? Is the value of the purchase an experiential value that you share with someone else, such as a vacation? Is the value of a purchase of boosting self-esteem, such as a new suit? Is the value of a purchase a sentimental value, such as jewelry? Shopaholics have to ask themselves hard questions such as, how can I enjoy new experiences without paying for expensive vacations? How can I boost myself esteem without buying a new suit? How can I create sentimental memories without buying jewelry?

Answers to these questions can sooth the nausea and pounding temples. The cure for an evening of binge drinking is not another beer. The cure for a shopping binge is not another shopping bag. Frugality is the cure. It is time to be both frugal and fashionable!

Frugality is in Fashion

Evidence of the fashionableness of frugality abounds. One example is Money Clubs that act as accountability groups. In a group setting, friends help set their personal financial goals and decide on steps to take. Last year, New York Times columnist MP Dunleavey formed a debt-reduction group for women, cleverly named Women in Red. Consumers have quit “blowing off” small, recurring expenses. They have started to realize what those expenses cost in their totality. People have discovered that they are no longer “too proud” to shop at discount stores and dollar stores—where business is booming. Upscale retailers are getting into the frugality spirit, too. Grocery stores such as Whole Foods now offer coupons and weekly sales, Starbucks offers $1.50 coffee, and MacDonald’s has a “luxury” coffee that is giving Starbuck’s some competition. Old-fashioned, classic toys like Legos and Rubik’s Cubes are selling better than new, flashy toys. One time-honored indulgence that appears to be recession-proof and appealing to all ages: chocolate.Thank goodness, some things never change.

Fashionistas are adopting the trendier practice of being “frugalistas” when they shop. Shopaholic used to be considered cute. But times have changed. Those who can clutch the reigns and get their spending under control are being forced to do it, and quick. Nevertheless, the economy is peeling back the curtain on compulsive shopping. What is revealed is the unattractive side of the term shopaholic. Compulsive shoppers have real problems. They go on shopping binges, they chronically and repetitively shop, and they buy for short-term satisfaction that leads to long-term damage to themselves or others. Shopping binges usually result in a hangover of economic nausea, relationship headaches, and buyer’s remorse. Governmental spending binges do too, but that is another topic.

The new shopping term is “surgical shopping.” It’s also called “appointment shopping” and “targeted shopping.” It all means that shoppers are becoming increasingly selective. So if you’re finding yourself using the mall for exercise and making more tactical strikes with your shopping, you’re not alone.

How did Americans become addicted to shopping? They got confused about what true value is. Calculating true value can be difficult. We buy things that hold perceived value or meaning for us. What is the value, the meaning, behind our purchases? Is the value of the purchase an experiential value that you share with someone else, such as a vacation? Is the value of a purchase of boosting self-esteem, such as a new suit? Is the value of a purchase a sentimental value, such as jewelry? Shopaholics have to ask themselves hard questions such as, how can I enjoy new experiences without paying for expensive vacations? How can I boost myself esteem without buying a new suit? How can I create sentimental memories without buying jewelry?

Answers to these questions can sooth the nausea and pounding temples. The cure for an evening of binge drinking is not another beer. The cure for a shopping binge is not another shopping bag. Frugality is the cure. It is time to be both frugal and fashionable!

How to Develop Financial Discipline

Sam loves quotes from authors and wise folks. As W. Somerset Maugham so sadly pointed out, "The unfortunate thing about this world is that the good habits are much easier to give up than the bad ones." Someone else observed, "Bad habits are like a comfortable bed, easy to get into, but hard to get out of."


Discipline is not fun. However, discipline is required to treat your money properly. If you treat your money well, your money will be good to you. Here are some ways to treat your money well:

Get a good return on your money

Everyone wants to get a good return on his or her money. How would you like to make 10% to 20% on your money? Here is an easy way: pay off your credit cards! If you do not have to pay your credit card interest rates of 10% to 20%, it is the same thing as saving or earning that money. Do not be one of the vast numbers of credit card holders who are paying interest on their balances. Be smarter than they are.

Verify your expenses

Open up each bill when it arrives and analyze each bank and credit card statement to check if it is accurate. Put each bill in its own file or envelope.

For your checking account, use check stubs that make a copy of the checks you write. This helps you keep your checkbook balanced because it provides a copy of all the checks you wrote, in case you forget to note it in your records.

Avoid ATMs

Avoid automated teller machines. Sure, ATMs are convenient, but convenience costs. If you use an ATM at a bank branch that is not your own branch, many banks charge a fee for using that ATM. Some banks have been raising these fees. The fees can add up fast. The cure for ATM dependency is to plan ahead, go to your bank during bank hours, and withdraw the cash you need.

Do not hide your spending behind "saving" with coupons or sales

When you buy something, if it is a "want" rather than a "need," it is not a savings, even if you used a coupon or got it on sale. You did not really "save" money; you spent money. This reminds us of the story of the spouse who proudly returns home from a shopping trip and tells his or her mate how much money all the sales at the store "saved" them. The response from the mate is, "If we saved so much, why do I feel so broke?"

We encourage you to use coupons and shop at sales. Just do not let yourself be carried away by all the spending opportunities.

Earn extra money

To reach your goal of having extra money, you may need to explore beyond your "comfort zone" and look for new ways to make more money.

Weekend or evening jobs can supplement your earnings. You can share your home or apartment with a friend, relative, or tenant and split expenses with them. For extra spending money, you can tell friends and family that you are willing to house sit, pet sit, walk dogs, run errands, or provide other occasional services.

Sleep better at night

There is an old saying, "Make good habits and they will make you." Soon, your new savings habits will become easier and you will start to see how they make good things happen in your life. In addition, the peace of mind you will gain will help you sleep better at night.



Heidi Clingen is a long-time resident of Stevenson Ranch. She and Samuel K. Freshman are authors of The Smartest Way™ to Save, Why You Can’t Hang on to Money and What to Do About It. They offer only their opinion, which does not constitute professional, financial, or legal advice. To receive a copy of The Principles of Financial Independence or submit questions, email them at http://www.blogger.com/goog_1674118699