Black Friday arrives once again, preceded by the Chinese “Singles’ Day.” This latter event, celebrated on November 11, began in 1993 at Nanjing University and consisted of single people buying gifts for themselves. What started as an initiative to “fight” against Valentine’s Day has now become the largest shopping event in the world. Consumers spent a record $25.3 billion on products during last year’s Singles’ Day, surpassing the $19.6 billion spent collectively in the United States on Thanksgiving and Cyber Monday. Furthermore, it appears that expectations have been exceeded in 2018, and the Asian giant could have increased its sales figures by up to 27%. Is it really possible for us to continue spending every year at such an exponential growth rate? At what point will we become disillusioned by this maelstrom of commercial holidays? Globalization has brought us Black Friday, Cyber Monday, and Singles’ Day, which already form the new commercial “Triumvirate” that plagues citizens during the month of November. This month of heavy spending will be followed by Christmas—a traditional shopping season that usually leaves our wallets trembling—and then the January sales. It is exhausting just thinking about it!
It is advisable to take advantage of discounts to purchase items you need, provided you can afford them according to your level of income and expenses. However, the pace of sales and the misuse of consumer financing may indicate that most of us buy things we do not need during these days, at prices we do not truly know are bargains, and often beyond our means. The emotional part of our brain overrides the rational part. We end up buying two T-shirts instead of one because they give us a free scarf that, besides being ugly, we eventually don’t know who to give to; we add something else to our online shopping cart that we hadn’t planned just to save on shipping costs; we buy things in packs of six even if we don’t need that many because “it’s cheaper that way.” We know that in Spain we do not have a sufficient level of financial education, which contributes to succumbing to marketing and that inner “mini-me” telling you that the purchase is justified because it is a steal.
So, what can we do to survive these dates? Experts in this field recommend two things: making a list and arranging interesting alternative plans during those days of “maximum pressure.” Before November begins, have a list of the things you need to buy with estimated prices, including something for yourself that isn’t very expensive but makes you happy, and create a budget of available funds. The second recommendation is to organize plans that help you not think about it. Meet up with friends you want to see, start designing the Nativity scene, take a walk through the city center, sign up for a volunteer day, or open the closet to take out clothes we no longer wear and… donate them. Anything that can truly be useful. And always do it with family or friends to make it truly special and turn it into a custom starting this year.
And what about online shopping? The two previous tips also work for online purchases, but it is necessary to consider a point to which we normally do not pay much attention: cybersecurity.
The AEB, together with its members, has launched a campaign during this period to help users shop safely online, with precautions such as being wary of disproportionate discounts and recommendations like shopping on websites that start with “https” and include the merchant’s contact details and address, reading privacy policies, checking other users’ reviews beforehand, and always using secure Wi-Fi networks. In addition to this campaign, the protagonists of our financial education initiative ‘Sí Dígame’, Jaime and Julio, explain everything we need to know about secure online shopping and how to manage our personal budget.
This year, we will once again be the target of seemingly incredible discounts, coupled with the fact that they are limited in time and, through the use of big data, are tailored to our tastes and hobbies. All this information will reach our email or appear as we browse the internet or use our favorite mobile applications. It is the perfect time to take control of what we want and what we need, with a list in hand and plans with family or friends, and act accordingly.
Beatriz Morilla, Head of CSR at the Spanish Banking Association (AEB)
