Have you ever felt the thrill of securing a great deal, only to realise later that you spent more than you intended? You’re not alone. Many savvy shoppers take pride in stretching their dollars with coupons and discounted purchases, especially via online stores like Shein, Ebay, AliExpress, and Amazon. But what if your love for deals is quietly draining your purse or wallet? If you find yourself shopping frequently because of discounts rather than necessity, you might be caught in the coupon trap — a sneaky financial pitfall that tricks you into spending more under the guise of saving.

Types of Coupon Traps

Coupon traps come in various forms, often disguised as savings but ultimately lead you to spend unnecessarily. Here are some of the most common types:

The “Buy More to Save More” Trap — Many coupons offer discounts when you purchase multiple items, such as “ buy one, get one 50 per cent off” or “spend $100 and get $10 Off.” While these deals seem enticing, they can encourage you to buy more than you originally intended, leading to unplanned spending.

The “Expiry Date Pressure” Trap — Retailers create a sense of urgency by placing short expiry dates on coupons. If you’ve ever received an email from your favourite online store announcing an offer that expires in 24 hours or seen the countdown to an offer, then you would have seen an expiry date pressure trap. This psychological tactic pushes shoppers into making rushed decisions, fearing they might “miss out” on savings. In reality, these quick purchases often lead to spending on non-essential items.

The “Minimum Spend Requirement” Trap — Some coupons require you to spend a minimum amount to unlock a discount, such as “$10 off when you spend $100.” This often leads to adding extra items to your cart just to reach the required amount, ultimately making you spend more than planned.

The “Free Shipping with Minimum Purchase” Trap — How many times have you added unnecessary items to your cart just to qualify for free shipping? Retailers take advantage of this behaviour by requiring you to spend a minimum amount to qualify for free shipping. However, the extra items we add to our carts to avoid shipping fees sometimes cost more than the shipping fee itself.

The “Tiered Discount” Trap — Retailers use tiered discounts, such as “save $10 on orders over $49, $20 on $99 and $60 off orders over $100,” to persuade customers to spend more to unlock higher savings. However, spending more just for a bigger discount means you’re still spending more than intended.

These coupon traps often form a key part of retail sales strategies. In fact, a December 2023 report by BWG Strategy and Turbyne found that 64 per cent of US retail media decision-makers believe digital coupons are an effective tactic to drive sales. They use coupons to encourage frequent purchases by creating a sense of urgency, making shoppers see coupons as a must-use opportunity. With online shopping becoming more accessible, Jamaicans are increasingly exposed to these coupon traps. Moreover, local retailers also use similar tactics, to boost sales — especially during seasonal sales.

The reality is that coupons create a psychological reward system. Every time you score a “great deal,” your brain releases a small dose of dopamine — the body’s feel-good chemical for doing something enjoyable – which reinforces the behaviour. What’s also at play, is FOMO — the fear of missing out. Consumers who struggle with FOMO have a harder time resisting the urge and fall victim to coupon traps. In essence, if you are highly influenced to purchase because there is a coupon or a deal or a discount, then you may be spending more than you need to.

Are You Caught in the Coupon Trap?

If you’re unsure whether your couponing habit is leading to overspending, ask yourself:

• Do you buy items just because there’s a deal, and not because you need them?

• Is your pantry or closet filled with things you bought on deals, but barely or have never used?

• Do you feel an emotional high from snagging a deal, only to experience regret later?

• Are you making frequent, small purchases that add up over time?

•Do you feel the urge to spend every time you see a sale or promotion?

If you answered “yes” to any of these questions, your couponing habit might be costing more than you realise and derailing your savings and investment goals.

Fortunately, you can elude the coupon trap by adopting a needs-based approach to shopping. Before acting on a coupon offer, ask yourself if you would buy the item at full price or if it was needed to solve a significant issue. If the answer is no, you probably don’t need it.

Additionally, consider setting a monthly budget for non-essential shopping and sticking to it, even when faced with enticing deals. You can also limit the number of times you visit and browse your favourite e-commerce sites to reduce exposure to tempting discounts.

Tracking your spending and potential savings is also an effective strategy for eluding the coupon trap by helping you see if your “coupon savings” are being outweighed by unnecessary purchases. Delaying purchases can also help! if you are tempted by a deal, wait 24 hours before deciding. This cooling-off period can help determine whether it’s a real need or just impulse buying.

Lastly, using coupons strategically by sticking to discounts on items you already planned to buy can help you stay financially disciplined.

Ultimately, true savings come from mindful spending, not chasing every discount. A disciplined financial strategy prioritises needs over wants, minimises impulse buys, and focuses on long-term financial well-being rather than the thrill of a discount. While coupons can offer us attractive bargains and increase our savings, we should guard ourselves against falling into coupon traps. The next time you are about to redeem a coupon, pause and ask yourself: Am I really saving, or just spending frivolously?

Dr Karrian Hepburn Malcolm, Head — Wealth Management, National Commercial Bank Jamaica Limited