There are only a few hours left until Black Friday arrives. Last year, I was surprised by the number of companies that joined the discount frenzy, and by how quickly and enthusiastically so many consumers embraced this Anglo-Saxon custom that will soon become part of our lives, just like the January or summer sales.
The first time the term “Black Friday” was used, it was not to refer to shopping before Christmas, but to the financial crisis triggered by the collapse of the U.S. gold market in 1869. Two financiers worked together to buy as much gold as they could and, hoping to drive up the price, sell it for greater profits. That Friday, September 24, the conspiracy was finally uncovered, causing the stock market to fall and many to go bankrupt, from the gentlemen of Wall Street to small investors. It was not until much later that the term was coined to describe the chaos caused by pre-Christmas shopping, which began the day after Thanksgiving in the United States. Today, Black Friday is the day of discounts on all kinds of products and services, and companies even extend the offers for up to a week, when Cyber Monday is held, the online version of those deals in online commerce.
Perhaps this day is a good time to take advantage of discounts, and an even better opportunity to be clear about a couple of things we often forget about responsible consumption. We must remember that if we do not need it, no matter how cheap it may seem, it still ends up being expensive. In addition, the question we must ask ourselves is whether we can afford to buy it, no matter how much we like it and regardless of whether it is cheap. These are the kinds of tips Marta and Nacho offer us in Your Money and You, the online financial education course that AEB, together with its Foundation, has launched to promote personal finance knowledge among younger people.
We know that in Spain we do not have a sufficient level of financial education. That is why these kinds of events set off alarm bells for all of us who are concerned to see how emotions—fuelled by marketing and our “I want it and I want it now” attitude—lead us into a difficult situation that affects not only us, but also our family. We must stay alert, especially if we finance our purchases with cards, since a large proportion of Spaniards do not know that these purchases—bearing interest that we can choose not to pay at the end of the month—generate more interest in the future by increasing the amount of debt and, therefore, increasing the price of what we buy exponentially..
Knowing how to manage your money means having the ability to make informed decisions, based on our knowledge, skills and attitudes, always taking personal circumstances into account. This is the financial culture we need during these days when we will be bombarded with all kinds of advertising messages such as “Exactly what you need” or “Buy now before the offer ends” to prevent many of us from ending up in debt even before Christmas.
Let us make this Black Friday a responsible Friday, and do not shop online or go shopping without being clear on the answers to three questions: Do I need it? Have I compared the price and quality? Can I afford it? If the answer to all three questions is yes, then happy shopping!
