Aging Backwards Tuesday Tips #9: The Science of Spending

Are you hardwired to spend too much money -- or to save?

Economists at Carnegie Mellon University teamed up with psychologists at Stanford to figure out what makes some people spend money while you have to pry it out of others. They hooked up subjects to an MRI machine and monitored their brains while they showed them items to purchase at about 75 percent below retail in a virtual shopping mall. The subjects would choose whether or not they'd like the chance to buy each item.

Surprisingly, the researchers saw telltale patterns. It turns out that there are two areas of the brain responsible for making the decision to spend or not. The first area is the nucleus accumbens, the region of the brain with dopamine receptors that are activated when you experience or anticipate something pleasant, like eating your favorite food or getting a fat check at work. In the test subjects, this region was activated when they first saw pictures of items they wanted to buy. The other area is the insula, the region of the brain which is activated when you smell something bad or see something disgusting or anticipate pain. The insula was typically activated in the test subjects who saw a price that they thought was too high for the item.

"Tightwads" slightly outnumber "spendthrifts," according to the researchers.

Don't Stress Out: Tips To Help Curbing Overspending

1) Make a list of the items you really need and refer to it while shopping.
2) Take a pre-determined amount of cash and leave credit cards at home.
3) If shopping at the mall, buy some birthday cards at the card shop, which you can always use. You'll have a bag to carry around and you won't feel as if you're leaving "empty-handed."
4) Stop and have a cup of antioxidant-rich coffee or green tea. It will give you a chance to review your list and plan your next purchase, plus the caffeine in the coffee will keep you alert and perhaps help you make better spending decisions.
5) When considering a clothing purchase, ask yourself if this is something you'll wear all the time, or are you buying it because it's a "bargain."
6) When shopping online, check out sites like BizRate.com for price comparisons and Overstock.com for bargains and a flat fee of only $2.95 to ship your entire order.
7) It's almost too easy to shop online. When the urge is overwhelming, try diverting your attention with a brisk walk, a challenging crossword puzzle, a phone call to a friend or a good book.

Excessive debt is extremely stressful and can have a negative impact on your life, causing anxiety, frustration, headaches, fatigue, hopelessness and even feelings of desperation. Get help by reading the Federal Trade Commission's Facts for Consumers and take the first step in freeing yourself from unnecessary stress, which can cause premature aging.

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Here's a link to an article about the Carnegie Mellon / Stanford research.