spending by color
TRANSCRIPT
© Apr 12, 2023 National Financial Education Centerat Debt Reduction Services Inc. (Boise ID)
www.NationalFinancialEducationCenter.org
Spending by Color
Why We Choose to Spend In Our Own Colorful Ways
Welcome to
#2© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Housekeeping
• Silence Cell Phones
• Water
• Restrooms
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Why We’re the Experts
Nationwide Nonprofit since 1996Nationwide Nonprofit since 1996
Counseling 1,000s of Debtors AnnuallyCounseling 1,000s of Debtors Annually
Hundreds of Classes Every YearHundreds of Classes Every Year
#4© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Course Overview
Spending
Evaluate Spending Tendencies
Identify Spending
Motivations
Your Hidden
Spending Habits
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Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#1Learn to play a musical instrument
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#6© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#2Buy a Rolex
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#7© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#3Let spouse decide how to spend it
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#8© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#4Always insist on paying for your friend’s dinner when you go out
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#9© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#5Donate to a public library
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#10© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#6Go skydiving, rappelling, rock climbing, or do other extreme activity
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#11© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#7Hire a professional to help you with your finances
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#12© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#8Upgrade your cell phone to the latest model with all the bells & whistles
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#13© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#9Purchase life insurance policy to cover your family in case you pass away
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#14© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#10Lend money to a co-worker
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#15© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#11Contribute supplies to a local school
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#16© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#12Buy a ski boat or all terrain vehicle (ATV)
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#17© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#13Pay for a gym membership or a home gym
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#18© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#14Update my wardrobe to be more stylish
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#19© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#15Give gift to a loved one “just because”
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#20© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#16Throw a neighborhood party
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#21© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#17Give to a charity or a church
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#22© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#18Buy yourself a season ticket to a ski resort, amusement park, sporting event..
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#23© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#19Take an adult education class (such as pottery, cooking, art, finance, health…)
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#24© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#20Buy new rims or a new paint job for your vehicle
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#25© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#21Purchase playground equipment for children in my family
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#26© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#22Give a friend a gift certificate to their favorite retail store
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#27© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#23Do volunteer work and cover your own expenses
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#28© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#24Get a new gaming system
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#29© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#25Join a book club and build your personal library.
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#30© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#26Cosmetic improvement or surgery
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#31© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#27Give an anonymous gift to a family member
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#32© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#28Buy something a friend is selling even if you don’t need it or want it
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#33© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#29Give to a nonprofit fundraising event
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#34© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Rate yourself on the likelihood that you would spend your money or time on the item and/or experience below. Consider each choice independently.
#30Purchase the latest iPod and regularly purchase songs off the Internet
1 2 3 4 5
DEFINITELY NO MAYBE DEFINITELY YES
#35© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Evaluation
Add columns in Results Sheets
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Evaluation
Transfer Results to Reporting Form
Please answer 9 anonymous demographic questions
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Spending Color Wheel
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Spending Color Wheel
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Spending Color Wheel
#40© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Spending Color Wheel
#41© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Spending Color Wheel
#42© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Spending Color Wheel
#43© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Spending Color Wheel
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Typical Expenses
Achievement
Red
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Key Words & Phrases
Achievement
Accomplishment
Satisfaction
If it’s worth doing,it’s worth doing right.
Skill
Red
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Tips and Suggestions
Achievement
Red
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Admiration
Typical ExpensesPurple
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Admiration
Key Words & Phrases
Image
Brand Name
I wouldn’t be caught dead in…
Purple
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Admiration
Tips and Suggestions
VALUESvs.
VALUABLES #1
#2
#3
Purple
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Relationship
Typical ExpensesBlue
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Relationship
Key Words & Phrases
Other
Others
It’s not about me…
Blue
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Relationship
Tips and SuggestionsBlue
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Approval
Typical ExpensesGreen
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Approval
Key Words & Phrases
Please!
Status
What would the neighbors think…?
Impress
Green
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Approval
Tips and SuggestionsGreen
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Responsibility
Typical ExpensesYellow
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Responsibility
Key Words & Phrases
It’s my duty/job…
Make a difference in this world…
If not me, then who?
Yellow
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Responsibility
Tips and SuggestionsYellow
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Amusement
Typical ExpensesOrange
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Amusement
Key Words & Phrases
Fun! Fun! Fun!
Me! Me! Me!
What a Rush!!!
Orange
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Amusement
Tips and SuggestionsOrange
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It’s not how much you
EARN, it’s how much you
KEEP!
Importance
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Cross Colors Known to
Advertisers
Subtle & Programmed
Universal Spending Behaviors
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• Face the Factors:–Keeping up with the
Joneses.–Values vs. Valuables
• Suggestions & Tips–True worth is inside, not in
stuff.–Ask: “Is this practical?”
Compensatory Spending
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• Face the Factors:–You feel unappreciated.–You want to celebrate!
• Suggestions & Tips:–Budget “Fun Money”–Write yourself a note of
appreciation
Entitlement Spending
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• Face the Factors:–Habits or Addictions–Can impact others
• Suggestions & Tips:–Replace with cheaper
habit/hobby– In cases of addictions, seek
professional counseling
Habitual Spending
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• Face the Factors:– “But it’s on sale!”– Speak in “Percentages”
• Suggestions & Tips:– “Sales Come and Sales Go, but
Your Money Only Goes Once.”– “Sales are not Opportunities to
Save but Occasions to Spend.”
Sales Spending
#68© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
• Face the Factors:–Pressure to give–Can involve guilt and remorse–For family, friends or strangers
• Suggestions & Tips:–Sentiment instead of Price–Give service, your time, an
experience
Obligatory Spending
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Special Spending Behaviors
Impulse Spending
Convenience Spending
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• Face the Factors:– Usually your LOWEST scoring color– Put off till last moment– “Time is money!”
• Suggestions & Tips:– More Planning– Shop on the same day each week.
Inconsistency is the foe.– Take only the cash you need.
Convenience Spending
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• Face the Factors:– Usually your HIGHEST scoring color– Whims– The Senses– Store Layout
• Suggestions & Tips– Sleep on large purchases– Spending Plan (Goals Card)– Stick to Your List– Don’t Shop “for Fun!”
Impulse Spending
#72© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
• Linda and Hal– Every Saturday morning, they go
“Garage Saling!”– Love good deals– $20 to $50 worth of “stuff” they don’t
need.
• Their spending behavior(s)?
• Suggestions?
Examples
#73© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
• Lisa– Under the gun at work– Pulling more than her share– She “deserves” something special– Buys new outfit
• Her spending behavior(s)?
• Suggestions?
Examples
#74© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
• Alan buys…– biggest tires, shiniest roll bars,
extra fog lamps, loudest speakers, brightest paint…
– Gives sense of fitting in
• His spending behavior(s)?
• Suggestions?
Examples
#75© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
• Lorenzo– fast food for breakfast (in a
hurry)– lunch out with coworkers (no
time to make bag lunch & there’s peer pressure)
• His spending behavior(s)?
• Suggestions?
Examples
#76© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
•Other poor spending behaviors?
Examples
#77© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
• Financial goals = roadmap• Review spending plan• shopping lists (“live by a
menu”)• Know spending limit
before going to store• Keep good records for
review
Disciplined Spending
#78© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
3. List obstacles4. Plan to overcome
obstacles5. Establish value
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hhaabbiittss
DDeessccrriibbee wwhhaatt iiss kkeeeeppiinngg yyoouu ffrroomm
cchhaannggiinngg eeaacchh hhaabbiitt11
WWrriittee ddoowwnn ssppeecciiffiicc sstteeppss ttoo oovveerrccoommiinngg
tthheessee bbaarrrriieerrss
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yyoouu22 1.
1 “What is stopping me from overcoming this poor habit?” “Why am I not spending like I know I should?” 2 Regularly evaluate the worth of this process to you? If it’s questionable, change the goal or modify the personal value.
1. Identify behavior(s) to improve
2. Set deadlines
My name’s Todd and I’m a Convenience
Spender
4 weeks from today
Weekly Planning every
Tuesday at 7:00 pm
Too many demands on my
time to shop regularly.
I hate feeling like I get
nothing done!
5-Step Program
#79© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
Pennywise Pound Foolish
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• Too often we pinch pennies on the small stuff but don’t give the big purchases a 2nd thought.– Home Buying
Big Ticket Purchases
#81© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
• Too often we pinch pennies on the small stuff but don’t give the big purchases a 2nd thought.– Home Buying– Car Buying
Big Ticket Purchases
#82© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
• Too often we pinch pennies on the small stuff but don’t give the big purchases a 2nd thought.– Home Buying– Car Buying– Appliances and Furniture
Big Ticket Purchases
#83© April 12, 2023 Debt Reduction Services Inc. (Boise ID)www.NationalFinancialEducationCenter.org
• Too often we pinch pennies on the small stuff but don’t give the big purchases a 2nd thought.– Home Buying– Car Buying– Appliances and Furniture– Vacations
Where we’d all like to be
NOW!
Big Ticket Purchases
© Apr 12, 2023 National Financial Education Centerat Debt Reduction Services Inc. (Boise ID)
www.NationalFinancialEducationCenter.org
Thanksfor Coming!
We are ALWAYS available to address your questions and
concerns.
And on that note… Enjoy
Your Day!