Why You're Not as Frugal as You Think You Are

 

You may think you are frugal, but chances are that frugality goes right out the window when you shop for someone you love. In a study in Judgement and Decision Making, subjects shopped for one of three items: a wedding ring, a storage container for either a grandfather clock or a cremated grandfather, or birthday cupcakes for a loved one.

Results: When buying for someone they loved, most subjects felt it was inappropriate to question a price, look for a cheaper option, or haggle even when prices were negotiable. For example: 91 percent of wedding-ring shoppers chose high-priced rings that were not necessarily high quality, and most buyers of crematory containers and birthday sweets said OK to any price quoted. But buyers of the 'clock box," a much less personal item, did look for ways to save money.

The study authors call these "sacred" vs. "secular" purchases, meaning: No one wants to look like a cheapskate in the eyes of a loved one or society. But the highest price is not always the best value, so refusing to shop around is not respectful, it is silly, even Grandpa understood that.