It may be common knowledge that a fool and his money are soon parted, but that still doesn't keep savvy consumers from falling into common financial traps.
A video designed to explore misconceptions about saving money was released Thursday morning, and some of its suggestions are quite surprising.
“Everybody likes to save money when they shop,” the video says in its introduction, “but be careful, the deals you hunt can sometimes bite back.”
Part of Daily Finance’s “The Savings Experiment,” a video series designed to help consumers save money on everyday expenses, the new video divides its advice into two categories: How to deal with a savvy salesman and how to understand the true value of a sale.
One misconception highlighted in the video is the benefit of buying food items in bulk.
“Buying more can sometimes save you less,” the video’s hostess explains. She cites the Natural Resources Defense Council’s statistic that buying in bulk is one of the leading causes of food waste in America.
According to the video, overbuying food items can cost a family of four up to $2,275 in unneeded expenses per year.
This advice goes against a common belief that buying in bulk will save money in the long run, since the price per ounce is usually far cheaper in bulk items. But as the video points out, perishable bulk items often spoil and go to waste.
To help keep spending down, the video suggests to instead buy food items that are used often and don’t spoil quickly.
JJ Feinauer is a graduate of Southern Virginia University and a content writer for the Moneywise page on DeseretNews.com. Email: firstname.lastname@example.org, Twitter: @jjfeinauer.