Wow! Out of all the things women think about when they’re pregnant, have you ever considered yourself to be a money target for retailers? Here’s why they target women & money, and how to stay grounded with disciplined money behaviors during this new phase of life.
It’s hard enough to manage money throughout our busy, disruptive, exhausting days. And good money habits might be anchored by other behaviors. You might pay bills during Sunday morning coffee, or on pay day right before bed. But what happens when your whole world changes?
Willpower is a Hard-to-Find-Commodity
In Charles Duhigg’s The Power of Habit, he discusses that Target considers pregnant women and new parents the “holy grail of retail”. Parents and parents-to-be are more price insensitive, busier, and tired so they rely on one-stop stores to minimize their time, and buy what they need.
In addition, pregnant women are gold mines because your previously-known life has been disrupted by a sweet, little bundle, and so have your disciplined habits. You’re fair game for developing new shopping habits, new spending behaviors, and just spending more than you should, period. Charles Duhigg refers to a survey conducted in 2010 that estimated a parent spends on average $6,800 on baby items, before the child’s first birthday!
3 Tips to Maintain Fiscal Sanity
Of course we all want the best for our little ones. Just beware the budget. You won’t feel human again until you find new routines, so use your energy and hard-earned cash wisely while you’re in a lack-of-sleep auto-pilot mode:
* Engage your analytical brain (versus the emotional, auto-pilot side) when buying expensive baby equipment. “You get what you pay for” isn’t always true, so shop around.
* Compare the price of high volume items you’ll need early in the pregnancy process. Retailers know diapers are an anchor product. They may price these competitively with higher margins on other baby products.
* Understand willpower will be low. Saying no to every cute piece of clothing and toy will be difficult. You need someone practical shopping with you who has been through it all and knows what will realistically be used.
Carrie Rattle is a Financial Therapist and the CEO at BehavioralCents. She is an executive veteran of the financial services industry and works with professional women on their mind and money behaviors to help them build an equal voice in the world. Thoughts always welcome: carrierattle@behavioralcents.com.
Carrie Rattle is a Principal at BehavioralCents.com, a website for women focused on mind and money behaviors. She has worked in the financial services industry for 20+ years and hopes to inspire women to better prepare themselves for financial independence.