Financial Literacy Skills

Avoiding OverSpending




Challenges in Controlling Spending

  • Emotional Impacts: Mental health issues can increase impulse buying or prevent financial management.
  • Unexpected Costs: Emergencies, birthdays, or unplanned expenses may disrupt budgeting plans.
  • Solution: Follow a structured budgeting process and include contingency funds.

10 Tips to Avoid Overspending

  1. Remove Shopping Apps
  2. Delete favorite shopping apps from your phone to avoid impulse purchases.

  3. Replace them with distraction apps like free games.

  4. Block Shopping Sites

  5. Use site blockers (e.g., Freedom) or child protection software to limit access to shopping websites.

  6. Set specific time restrictions if needed.

  7. Clear Saved Payment Information

  8. Remove credit card details from shopping sites and online wallets like PayPal.

  9. Slowing down checkout processes gives you time to rethink purchases.

  10. Store Cards Out of Reach?

  11. Keep cards in another room or a drawer to make impulsive spending inconvenient.

  12. Use cards only for planned purchases.

  13. Get Rid of Extra Credit Cards?

  14. Close unused accounts or cut up excess cards.

  15. Use only a debit card and request your bank to block overdrafts.

  16. Turn Yourself Down for Credit

  17. Add a note to your credit file to prevent approval for new credit cards.

  18. Services like Experian or Equifax can help with this request.

  19. Seek Help from Your Bank

  20. Banks can set lower spending limits, restrict cash withdrawals, or offer financial advice.

  21. They prefer you stay within manageable debt levels.

  22. Carry Cash Only

  23. Leave cards at home and take only the amount you’ve budgeted when shopping.

  24. Limits spending to what you physically have.

  25. Use a 24–48 Hour Rule

  26. Wait at least 24 hours before making any purchase.

  27. If you still want the item after the cooling-off period, proceed.

  28. Return Impulse Purchases

  29. If you regret buying something, return it promptly with the receipt.
  30. Most shops offer refunds or credit notes, except for certain items like perishables or underwear.

Final Tip

Replace impulsive actions with thoughtful choices to regain control over spending. Building better habits takes time, but these steps can help break the cycle of overspending and enhance financial stability.?

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