Money Psychology: How The Anchoring Effect Impacts Your Black Friday Shopping
That “70% OFF” sign might not be the deal you think it is.
Finding a pair of shoes marked down from $200 to $80 feels like a win — but is it really? Thanks to the anchoring effect, that original price becomes your mental reference point, making the sale price seem like a steal, even if $80 is more than you originally planned to spend.
What Is Te Anchoring Effect?
The anchoring effect happens when the first number you see — like an original price — sets the tone for how you judge value. Retailers know this and use it to their advantage. On Black Friday, those “was $499, now $299” tags are everywhere, and they’re designed to make you feel like you’re saving big.
Why It Matters For Your Wallet
Anchoring can lead to overspending because it tricks your brain into focusing on the discount instead of the actual cost. Whether it’s a TV, a laptop, or a pair of boots, the anchor price can make you justify a purchase you didn’t plan for.
How To Outsmart The Anchor This Black Friday
1. Be Aware
Just knowing about the anchoring effect can help you pause before you buy. Ask yourself: Would I still want this at this price if I never saw the original price?
2. Set Your Own Anchor
Decide your budget before you shop. If you know you can spend $100 on gifts, that becomes your anchor.
3. Compare Real Value
Instead of comparing to the “original” price, check what similar items cost at other stores. A quick online search can reveal if that deal is truly a bargain. You can also track prices ahead of Black Friday sales to make sure the retailer isn’t inflating the price before the sale, only to drop it back to its usual amount to make the discount seem better than it really is.
The Bottom Line
Anchoring is powerful, but awareness is your best defense. This Black Friday, shop smart, stick to your plan, and remember — the best deal is the one that fits your financial goals.
Ready To Shop Smarter?
Before you hit the sales, use BCU’s Financial Well-Being Calculators to set your budget and plan your spending. Explore our calculators.
To Watch: Helpful Holiday Spending: Financial Coaches, Dani, LaShanta, and Varinder share their holiday savings tips. Watch the webinar .
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