Today was a great opportunity to stock up on Goldfish crackers at my local grocery store. A prominent sign indicated that if you purchase seven or more snack-sized cartons, you can get them for just $1 each. With several cracker fans in my household, I thought this deal was worth considering.

According to the sale’s terms, if you buy fewer than seven cartons, the price per carton will be slightly higher. The promotion also applies to a wider selection of items; you can mix and match various designated products in the store, as long as you purchase at least seven.

These types of promotions have been around for quite some time, but the term “spaving” has emerged to describe them. It combines “spending” and “saving,” reflecting the idea that you can save more by spending more.

What is spaving?

Spaving refers to the practice of spending more money in stores to qualify for promotions like percentage-off discounts, free items, or complimentary shipping.

Beyond my example of seven Goldfish cartons for $7, here are other common spaving promotions:

  • Buy two items to get the third at half price
  • Spend a minimum amount at an online retailer to receive free shipping
  • Meet a minimum spend online for same-day shipping

Whether shopping in-store or online, spaving deals are prevalent. They can apply to anything from snacks and personal care products to major electronics and furniture.

When is spaving a good idea?

“When done wisely, spaving can be an effective way to save money on items you regularly purchase, like buying essentials in bulk,” says Adam Davis, vice president of Financial Health and Liquidity at Capital One.

Spaving can definitely pay off if you initially planned to buy enough items or spend the minimum required to qualify for a promotion. For example, if you intended to buy four bedding sets and discover a buy-three-get-one-free offer, you might just hit the jackpot.

When is spaving not a good idea?

Conversely, you might end up wasting money if you buy items you don’t really need just to score a deal.

For instance, my local store is offering $10 off a purchase of $40 or more on select nutritional products and $7 off $30 or more on bulk coffee. I prefer not to get swept up in purchasing things I don’t want or need just to save a few dollars.

The pitfalls of spaving

While a deal can be enticing, spending more than you planned or feel comfortable with can lead to:

  • Increased credit card debt
  • A diminished bank balance
  • Clutter in your home
  • Products that may expire before use
  • Elevated stress levels

“If you’re not cautious, spaving can lead to impulse purchases of unnecessary items, impacting your financial well-being and goals,” warns Adam Davis from Capital One. “For those who rely heavily on this tactic, it can result in overspending, overconsumption, and accumulating credit card debt.”

3 ways to make wise purchasing decisions

Here are some helpful guidelines to prevent you from making purchases you might later regret:

1. Set a budget

A budget helps you monitor your income and expenses. You can create one using a budgeting app, a spreadsheet, or even pen and paper. By staying aware of your finances through budgeting, you become more conscious of your spending habits.

“Establishing and consistently tracking your budget allows you to set spending limits before shopping and differentiate between your needs and wants,” says Davis. “Adhering to a budget can prevent overspending and support your overall financial objectives.”

2. Avoid impulse purchases

As a general guideline, wait at least 24 hours before making any purchases, especially for big-ticket items. This pause allows you to reflect on how much you truly want or need the item. Additionally, when you come across a sale, take the time to compare it with other offers. You might discover a better deal elsewhere, potentially one that doesn’t require extra spending to qualify for a discount.

3. Get into a money-saving mindset

The next time you feel the urge to make an impulse buy, consider whether you’d feel happier putting that money into your savings account instead. After reflecting on it, you might find that saving is the better choice. Boosting your emergency fund, for instance, can provide peace of mind and help you sleep better at night—benefits that are truly invaluable.

In Conclusion

If you come across the right deal at the right time, spaving can be beneficial. However, if you end up purchasing items you don’t need or spending more than you’re comfortable with, it’s best to walk away.