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Though budgets from consumer credit counseling services can help, mental calculations may lead to higher grocery costs
By Marvin Milner on Mar 3rd, 2010
Creating and sticking to a budget may be one of the ways consumers use to pay off debt.
However, a recent study from the Georgia Institute of Technology shows that people who try and use mental calculations while at grocery stores may end up spending more than they intended to.
The study is based upon the work of Koert van Ittersum, an assistant associate professor of marketing at the school. Van Ittersum interviewed people at grocery stores about their budgeting habit. Of those he spoke with, 85 percent try to keep track of spending. Sixty percent of those try to do so in their heads, rather than with the benefit of a list or calculator.
In the end, most people end up underestimating their totals, which means they could shell out more than their budget allows.
"We were fascinated to see that even among shoppers who basically cannot afford to overspend on groceries, the majority indicates that they try to keep a mental tally going," van Ittersum said.
As a result, researchers involved with the study suggest consumers use a rounding system.
Of course, perhaps the most logical solution would be to use a calculator when trying to keep track of spending. People may also consider a consumer credit counseling service, which can help them establish a budget to which they can fix their spending.
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