In these unwieldy economic times, everyone is looking for ways to cut back and we’ve all seen morning news segments take some clipping genius out where they’ve bought $300 in groceries for $.19. But according to Bottom Line Personal, coupon clipping can cost big. Here’s what they tell us to watch out for:

1.  Coupons can convince us to buy overpriced or unneeded products. Most coupons are for pricey brand-named goods, not cheaper generic or store-label items. Coupons for brand name goods are legitimate money savers only if they reduce the price enough that they are cheaper than generic ones, which often isn’t the case.

2.  Frequently coupons steer us toward obscure or recently unveiled products that we wouldn’t have considered without a coupon. We all try new food and household products that seem interesting, but don’t be fooled into thinking you are saving money here – you are using your money for an item you would not have otherwised purchased and may not like.

3.  Be wary of coupons that feature the word “free” in large typeface. When you see “Buy two, get one FREE” know that consumer product companies have discovered shoppers tend to overestimate how attractive a deal is when they see the word “free”. (Note that Amazon.com has reslized this too – that when they marked free shipping orders increased dramatically.) 

4.  Coupons can persuade us to eat unhealthy foods. Among the most common coupon categories are pre-packaged surgary or salty snacks, cookie dough and soda. Junk food coupons can sway us away from out heathier eating plans and foster poor eating habits and weight gain – not worth the savings there. 

5.  The money you save isn’t money you save. Shoppers often reward themselves for their coupon-clipping frugality by allowing themselves to splurge on a luxury item or two. These splurges are sometimes greater than the amount that was saved in the first place.

6.  Some people see coupon clipping as a substitute for a job. Jobs are hard to find these days, and some frustrated job hunters are turning to coupon clipping as a prductive way to use their time. This thinking received a boost for a well-publicized 2010 Wall Street Journal article that concluded that couponers earn the equivalent of $86.40 per hour, tax-free. That may be true for a few hours a week, but the per-hour earning rate actually decreases dramatically the more time that is devoted to it. Money saved is not the same as money earned. 

*Above tips come from Bottom Line Personal, Volume 32 Number 17