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Archives for January 2015

Refuse To Be A Customer In Training

By Frugaling 7 Comments

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Consumer in training Whole Foods cart

A seed is planted

As a 4 and 5-year-old, I slept comfortably on an IKEA bed frame. Like many of their products, it was probably called a Flickanflack, Dottbland, or some other uniquely random, proper Swedish name.

I remember a drawer that occupied the bottom of the bed frame — so large that I could fit my little self inside it. When the drawer closed, and the world turned off, I felt protected — even if I was a little afraid of the dark. Nothing could find or get me in my enclosed space.

My parents would go to IKEA and drop me off at Småland. This little taste of the Scandinavian language was the play place for children. Parents could browse through the store — even eat lunch — and then come back to pick up their kids.

Lucky for my parents, I actually liked the place and it afforded them some time alone. They could breathe easy, and I could have fun — a win-win (we thought). Unfortunately, something more nefarious was cemented at this young age, and it directly affects how my room looks today.

Companies market to nostalgia, memory

A couple weeks ago, I read an article about cereal marketing. It turns out that marketers know how to manipulate us to feel nostalgic responses — craving feelings from our past that can trigger consumption.

One food and consumer trend analyst suggests that “nostalgia is an important weapon in a marketer’s arsenal.” This effect was recently envisioned in the return of General Mills’ French Toast Crunch cereal.

For Millennials, this cereal brings back memories of childhood and happiness. And the company wants to recreate those emotions and benefit from increased income.

Like the potty, consumerism takes training

Some companies openly display their child-targeted tactics. For instance, Whole Foods, which has a wealth of natural and organic food options, provides tinier shopping carts for children. Attached to these mini-carts is a flag with a message: “Customer in training.”

Subtly, General Mills, IKEA, and Whole Foods (to name three in a sea of companies) display the power of marketing to children. By reaching young minds, ideas can be implanted for later use. Many of their efforts are initially free or nominal.

Swimming in the ball pit, playing video games, and racing around IKEA’s Småland didn’t exactly feel evil. As a child, I wanted that environment; heck, it was more entertaining than what was at home. I welcomed those moments.

The perfect corporate consumer creation

Companies are playing a long game with children’s minds. This training can suddenly be activated at a company’s discretion — making us adult automatons and primed for consumption. It’s the tinge when we walk down the cereal aisle and feel a pull for Captain Crunch, Reese’s Puffs, and Life. These are marketed moments of nostalgia.

Children become inclined to the shapes and designs of IKEA furniture when it’s in their rooms and they’re visiting the fun, comfortable ball pit. And I was just one of the many affected by these tactics.

IKEA Catalog on table

In 2011, IKEA opened their first store in Colorado. As a student in Fort Collins (northern part of Colorado), I made the hajj-like journey to the store only days after its opening day. Again, there was a magnetic force pulling me to visit, purchase, and come back again.

Walking through the doors, there were a flood of emotions, but I couldn’t resist smiling. The smell of cinnamon buns and fresh wood tickled my senses and felt familiar. That familiarity led me to buy a desk, bed frame, side tables, a chair, stool, and many other odds and ends.

Hundreds and hundreds of dollars later, I had become the perfect corporate consumer. IKEA’s tactics had worked, and at the time, I couldn’t even seen the connection. I just felt this unknown gravitational pull.

Preventing childhood brand loyalty

Before I go any further, I’m not sure that most people in Western culture can prevent children developing brand loyalty. Billboards, magazines, TV shows, shops, restaurants, and everything in between serve as powerful anchors for future consumers. Children are psychologically changed by these messages — corporations know this and parents should, too.

The consequence of perfect implantation of these advertisements is that people do not want to relinquish the connection. As a frugal person and advocate of minimalism, I can tell you that I still like IKEA. If someone said I couldn’t shop there any more, I’d be upset. The company’s gigantic, warehouse-like stores are too familiar to imagine letting go of. I’m deeply loyal to the brand.

Nonetheless, in this world of marketing, there are a few things parents certainly can do to raise children that evaluate these external messages.

1. Avoid companies that target children

For many parents and families, this is challenging. Most supermarkets and big-box retailers model the stores to affect children. Cereal aisles are, again, the perfect example. Children’s cereal is placed lower to the ground, features colorful packaging, and fun cartoon characters. Parents can decide to avoid shopping with children when possible and protest companies like Whole Foods that actively recruit consumption in children (i.e., “Customer in training” carts).

2. Be skeptical of “free” offers

There are many samples, courtesy gifts, and free offers for parents and their children. When a child is surrounded by certain products, a connection develops. If there is comfort in these items, those children will likely continue the cycle of consumption for that particular brand (whether they know it or not). IKEA’s play place may be free in price, but their corporate goals are to create return shoppers for decades to come.

3. Talk with children about the messages they receive

Advertisers don’t tend to explain themselves to children. It’s not like kids are provided a consent form that tells them what advertisements can do to them. But the young mind is malleable. What makes children incredible sponges for knowledge also makes them susceptible to untoward marketing behaviors. As parents, guardians, teachers, and leaders, we can share some of the truth and help explain how companies aim to affect our emotions negatively (by manipulating us to feel nostalgia and happiness).

Filed Under: Save Money, Social Justice Tagged With: Advertisers, Children, Consumer, Consumerism, Customer, General Mills, Ikea, Marketing, Minimalism, Nostalgia, Whole Foods

Frugal Articles of the Week

By Frugaling 2 Comments

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Reading Nook Photo

Today I wanted to feature a few frugal articles that caught my eye this week. Curl up in your favorite reading nook and enjoy. Hopefully these encourage you to live frugal lives!

It’s Impossible To Stay Retired Once You Retire Early by Sam “The Financial Samurai”
The Financial Samurai has been writing for years about personal finance. His style is unique in a world of tired financial advice. He goes beyond that 5 tips to save money on groceries. In this article, Sam reflects on his time as a retired man, and why he just can’t quit working. Brilliant story!

The Cable Diaries – Final Chapter by J. Money
When he looked at his $170 per month cable bill, J. Money decided to take action to reduce it. In this running series, J. shows readers how he has saved money. He introduces every product and necessary component to help you switch away from cable.

What A Year Without Clothes Did For Me by Mrs. Frugalwoods
Using the funny moniker, Mrs. Frugalwoods, this adventurous budgeter decided to go without clothes. Well, not quite without any clothes! She made a pact not to buy any new clothes for 2014. Read on to see how she did!

Slow Cooker White Chicken Chili by Beth at Budget Bytes
I’ve been following Beth’s recipes for years now. She runs one of the best frugal-friendly websites out there for saving money and eating well. Her recipes are broken down by total cost and serving size. This Chicken Chili looked fantastic!

Filed Under: Save Money Tagged With: articles, Budget, Cable, Clothing, Cooking, Financial, Frugal, groceries, Recipe, Retirement, Shopping

American College Students: In Debt, Distracted, And Doomed

By Frugaling 9 Comments

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College Classroom Distracted With Macs

Being a teacher and instructor in college is more challenging than ever. Nervous eyes take glances at iPhones, quickly minimize Facebook apps, and craft rapid text messages. Students are unbridled in their distraction. They look uncomfortable sitting still.

As a college instructor for about 4 years, I’ve become increasingly aware of fellow educators expressing frustration over “lazy” students that multitask. Some educators ban smartphones and iPads during classes. Others call out students that text in class, and ridicule them in front of peers — aiming towards social conformity.

Unfortunately, technology is serving as a scapegoat for something worse. Teachers want to limit these technological forms of distraction to heighten learning for everyone, but this classroom management strategy misses a fundamental problem. Today’s students aredistracted, but their attention problem results from atmospheric student loan debt and poverty.

The American Dream and business of higher education

Built in to our ailing economy and concrete erections is a fundamental dream: hope for a better life. It’s why many emigrate here.

While achieving that success is attained through various methods, college still serves as the number one predictor of middle class life. High school graduates make a median salary of $651. By attaining a bachelor’s degree or higher, individuals make a median salary of $1,108.

BLS Educational Attainment Statistics

For decades, the message has universally been towards greater higher educational attainment. Generations of students, employees, employers have followed this rule — requiring college educations and encouraging people to get at least a bachelor’s degree. Now, about 32% of Americans have college degrees.

Guidance counselors ask high school and college-aged students to envision anything they want to accomplish. Fundamentally, they ask, “What do you desire?” and “What would you like to do if money were no object?”

But money is an object, and we are controlled by its properties — through empowerment or restriction. These questions of freedom tease students with a reality that doesn’t exist.

Student loans restrict, constrict, and destroy choice

Many will graduate with nauseating student loan debt. Heck, there’s $1.2 trillion right now! For class of 2013 college graduates, the average student loan debt was nearly $30,000. With that amount of debt and interest rates that vary from 3.86% to 7.21%, today’s graduates don’t have the freedom that’s espoused and propagated by higher education and mainstream media.

The problem gets compounded as “student tuition now outweighs state funding at public colleges.” Now, state taxes and revenue sources are contributing to even less of the total cost for students. This all flies in the face of socialistic policies in many European countries that have highly progressive, free (tax-supported) higher education.

Americans place the burden on students as young as 17 to make educated decisions that could affect the rest of their lives. Faltering in payments and failing to swiftly pay off the debt can lead to forbearance, default, skyrocketing interest rates on credit cards, and more. Credit scores and future livelihood are at risk.

Educating the desperate, sleep-deprived, and in debt

The interest is already ticking for many before graduation. Students can feel eager to get a job, get paid, and pay off debt. But even before they graduate, they must ask themselves some serious questions:

  • Should I work during college?
  • Should I take more than a normal credit load each semester to finish faster?
  • Should I skip study abroad opportunities that cost more and may extend my time?

Previous generations had the incredible luxury of minuscule tuition rates. Between 1978 and 2013, college tuition and fees grew by an overwhelming 1,225%. Simply put, college cannot be paid for with summer jobs and temporary work.

To the financially disenfranchised, student loans fill the gap for access. But there are still students that work during college. I had two jobs while also a full-time student, and there are many like me.

Then, there are students with disabilities, children, and veterans of foreign wars (to name a few). They are challenged to keep paying utilities, attain an education, and somehow keep a roof over their children’s heads. Again, student loans often serve as a mediator to accessing education — a temporary source of funding to attain a better income and vocational future. But real dreams can subtly disappear from view as financial aid bills take precedent.

Student loans magically appear, as do depressed dreams

Like many of my readers, I’ve worked hard to turn around my financial future. When I was in debt, I felt horrible. I spent money without concern and bought things I couldn’t afford. My debt was the illusion of success.

When I finally stopped to breathe in May 2013, I realized I had dug a hole nearly $40,000 deep. I was embarrassed with what I had done, and who I’d become. I wondered what I could do to reverse this dangerous course. Trust me when I say this is a common problem for many students.

Financial aid usually was deposited into negative balances at universities and then extra amounts were distributed to the individual student’s bank account. Suddenly, bank accounts were flush with thousands of dollars — budgets seemed irrelevant.

Everyone from the in debt to the creditors to general public confuses these loan instruments for real cash. Yes, you can spend student loans however you see fit, but the consequences are punishing. Every dollar is taxed by the current loan interest rate, and is a dollar in the wrong direction: towards poverty.

The problem of poverty in college-age students

Unlike the clarion calls that suggest America is number one, we seem to have created a master plan for educational failure. Research suggests that “poverty, itself, hurts our ability to make decisions about school, finances, and life, imposing a mental burden similar to losing 13 IQ points.”

By saddling our future graduates with nearly $30,000 in average student loan debt and a future of near poverty for many, we are hurting their ability to learn in the process. Lower-income and impoverished populations constantly report lower amounts of sleep, vocational uncertainty, higher stress, and show evidence of hindered decision-making capabilities.

These are the students of today. They are trying to succeed in a cultural landscape that begged them to get educated, punished them for getting that college degree with years of debt payments, and then limited their employment options.

As the dreams fade due to financial concerns, anxiety and distractedness likely increase. The dream of “What’s your purpose?” can quickly be replaced with “Who will hire me?”

We want bright, capable graduates, but we “victim blame” them instead

America is eager to have the best workforce in the world. We are a nation that aims to be a beacon of hope and role model to developing states. And yet, we are breeding and cultivating some of the most in debt, distracted, and impoverished students.

It’s not in the interest of this country, the world, and future progeny to continue this wicked cycle of educational attainment and poverty. It’s not in the interest of creating a bright, educated populace to have them cowering in poverty for doing so. It’s not in the interest of America to impair decision making in finances and education in the process.

As teachers express frustration for their distracted students, they need to fundamentally understand the complex, systemic interplay of student loan debt. This financial instrument is inherently complex and can psychologically impair the most capable students. They might not be able to pay attention because they’re burdened by a future of poverty, student loan debt, and restricted opportunities.

Something needs to change. This system isn’t sustainable. Fortunately, a small light of hope might be on the horizon.

Post by The White House.

President Barack Obama recently announced a massive initiative to empower those from diverse financial backgrounds to receive a “free” education. His plan includes funding community college educations for those working part-time and maintaining certain educational requirements. Over the coming months this will be hotly contested and debated. But this is the first step, in what needs to be many, for those in need of an education that’s truly accessible and affordable.

Students cannot continue to shoulder most of the burden. There are powerful inequalities in income and wealth — educational opportunities shouldn’t be one of them. If we can muster the courage and wherewithal to increase taxes towards education, we may see what America is truly made of.

Filed Under: Loans, Social Justice Tagged With: America, American, college, debt, Financial, financial aid, freecommunitycollege, Income Inequality, loans, lower income, poor, poverty, Student Loans, Students, university

Get a 10% Tax Refund Bonus with TurboTax 2014

By Frugaling Leave a Comment

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Intuit Turbotax Deluxe Federal State Refund Return Program

Tax season is nearly here! Over the last few months I’ve worked tirelessly to reduce my tax liability. One method I’ll use to receive an even larger bonus will be Amazon.com’s partnership with TurboTax. TurboTax is the leading tax preparation software and offers some of the best features for receiving your largest deduction ever. But for every dollar of my refund I put towards an Amazon gift card, I’ll get an extra 10% from Amazon!

For instance, if you receive a $1500 tax refund and download TurboTax from Amazon.com, you’ll be able to put up to $500 to a gift card with the 10% bonus! That can quickly give you an extra $50 for doing your taxes. By receiving the $50 Amazon.com tax refund bonus, you can effectively pay for the cost of TurboTax Deluxe 2014. And heck, Amazon can sometimes help us stay frugal!

What I like about TurboTax:

  • TurboTax is an Intuit product (they own Mint.com, too)
  • It automatically calculates deductions and checks to make sure I’m getting the largest refund possible
  • The company works with collegiate expenses and student loan payments to save even more money
  • Each year’s refund and return is collected for the next year, which saves a ton of preparation time
  • The program includes state and federal e-files for rapid returns and paperless refunds
  • By downloading from Amazon.com, it includes 5 free federal tax return files
  • Using TurboTax is a terrific preventor of getting audited, as it checks to make sure you’ve included everything
  • Instant download for Macs and PCs

Follow this link to get this year’s version: TurboTax Deluxe Fed, Efile and State 2014 with Refund Bonus Offer

Filed Under: Make Money Tagged With: Amazon, Amazon.com, Bonus, Gift Card, Mint, Student Loans, tax, taxation, taxes, Turbotax

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