The biggest shopping day of the year is fast approaching and many consumers are getting excited over rock-bottom prices on fresh merchandise such as televisions, children's toys, computers and more. However, not everyone gets excited for Black Friday shopping. In fact, some consumers avoid Black Friday shopping at all costs. While individual sales can save you money if you are in the market for the item that is on sale, Black Friday as a whole can be quite expensive for consumers. While Black Friday shopping is exciting, and the deals look impressive, the cost can be considerable. Does Black Friday shopping really save you money? The answer to that question depends on the type of shopper you are. Here is a look at the downside of Black Friday shopping and why caution should always be exerted when shopping on the day after Thanksgiving.

The Chance for Temptation Is High
With Black Friday sales circulars offering discounts on just about anything you could think of, it is easy to see why some consumers fall prey to temptation. Even the most practical of shoppers can fall prey to an impulse-purchase among the sea of doorbusters, circulars and crowded lines at the retail stores. With the chance for temptation running so high, it is easy for shoppers to spend over their budgeted amounts. There are quite a few impressive Black Friday ads for large retailers looking to tempt citizens out of their hard-earned money. Shoppers will have to work very hard to keep their budgets in peak condition while shopping on Black Friday.

A Deal Too Good to Pass up?
Have you ever heard the phrase: "A deal too good to pass up?" This phrase is often used in reference to Black Friday shopping when a consumer finds a great deal on something he or she doesn't necessarily need. The consumer wouldn't have purchased the item if the price wasn't great. Regardless of how much the price was slashed, if the item is something you don't need or are only going to use a handful of times, it is likely a big waste of money.

Shopping Frenzy
Black Friday shopping is more like competing in a long-distance race than purchasing items at a store. You need endurance to survive the long lines and patience to survive the crowds. Black Friday has the tendency to get consumers very excited, and consumers go into a sort of shopping frenzy on the day. Overexcitement mixed with adrenaline and a credit card is not a good combination for keeping a budget intact.

Keep Your List in Your Hand and Budget in Mind
The key to surviving Black Friday with your budget intact is to make a list and stick to it. Additionally, you may want to set a specific dollar amount that you are willing to spend on Black Friday shopping. Setting a strict budget amount and leaving your credit card at home are two sure-fire ways to keep your spending at bay. By creating a list before you go to the mall, you are ensuring that your purchases are well thought out and not impulsive.

The Bottom Line
While you can certainly find some great deals on Black Friday, it is important to be logical about your spending. If you do not put a specific limit on your shopping on Black Friday, your budget will likely be blown away by impulse purchases. Prior to heading out to the malls or shopping centers, map out a shopping plan, create a list and always be sure to think your purchases through before putting the item in your cart.

Related Articles
  1. Investing Basics

    10 Companies That Yuppies Love

    Learn about 10 companies loved by the modern Yuppie, including how this demographic's impressive buying power has boosted these companies' earnings.
  2. Stock Analysis

    Is the Apple Watch a Real Threat to Fitbit?

    Examine the potential for marketplace competition between Fitbit and the Apple Watch in the rapidly growing consumer wearables industry.
  3. Investing News

    How 'Honesty' Could Pay off for Jessica Alba

    Is it possible that Jessica Alba is one of the savviest businesswomen on the planet?
  4. Insurance

    How to Shop for Home Insurance

    Tips for getting the best protection for your place and possessions.
  5. Personal Finance

    Invest in Costco? First Understand Its Balance Sheet

    A strong balance sheet sets a company apart and boosts investor confidence. How healthy is Costco based on an analysis of its balance sheets from the last two years?
  6. Investing Basics

    The 5 Reasons Why RadioShack Went Out of Business

    Learn five reasons why RadioShack went bankrupt: store concentration, online competition, product concentration, management issues and financial missteps.
  7. Stock Analysis

    3 Stocks to Protect Your Portfolio from Inflation

    Discover three stocks to protect portfolios against inflation. The best companies to protect against inflation are those with pricing power.
  8. Retirement

    3 Reasons Your 401(k) Is Not Enough for Retirement

    Learn the basic structure of a 401(k), and a number of reasons why it may not be substantial enough to secure an individual's living upon retirement.
  9. Chart Advisor

    Invest In Consumer Staples With This ETF

    The consumer staples sector is showing signs of strength in a weak market. We'll take a look at a couple ways to make a trade.
  10. Stock Analysis

    J.C. Penney: Identity Crisis or Buy Opportunity?

    With so many recent leadership changes, J.C. Penney might be suffering from an identity crisis. Here's why and what you need to know.
RELATED TERMS
  1. Fast Fashion

    Definition of "fast fashion."
  2. Duty Free

    Goods that international travelers can purchase without paying ...
  3. Equitable Division

    A legal theory that guides how property acquired during the course ...
  4. Online-To-Offline Commerce

    A business strategy that draws potential customers from online ...
  5. Chargeback Period

    The timeframe during which a credit card issuer can dispute with ...
  6. Merchandising

    Merchandising is any act of promoting goods or services for retail ...
RELATED FAQS
  1. How soon should I start saving for retirement?

    The best answer to the question, "How soon should I start saving for retirement?", is probably, "yesterday," and the second ... Read Full Answer >>
  2. Can I use my 401(k) as a collateral for a loan?

    Although federal Internal Revenue Service, or IRS, regulations prohibit using a 401(k) account as collateral for a loan, ... Read Full Answer >>
  3. What does marginal utility tell us about consumer choice?

    In microeconomics, utility represents a way to relate the amount of goods consumed to the amount of happiness or satisfaction ... Read Full Answer >>
  4. How can I invest in electronic retailing (e-tailing)?

    Electronic retail is one of the fastest growing segments of the economy. Every year, more people are choosing to purchase ... Read Full Answer >>
  5. What is the difference between JIT (just in time) and CMI (customer managed inventory)?

    Just-in-time (JIT) inventory management focuses solely on the need to replenish inventory only when it is required, reducing ... Read Full Answer >>
  6. What are some common ways product differentiation is achieved?

    There are many ways to achieve product differentiation, some more common than others. Horizontal Differentiation Horizontal ... Read Full Answer >>

You May Also Like

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!