ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Short Term Savings Equal Long Term Debt

Updated on March 14, 2014

Counting pennies now seems like it should save you dollars later, but this isn't always the case. "Penny wise" refers to saving small amounts of money, while "pound foolish" refers to losing larger amounts of cash; this is why we sometimes say we are being penny wise, and pound foolish. In other words, there are many instances where short-term savings add up to long-term debt.


Store Credit Cards

Opening a store credit card can be exciting. Who doesn't want to save 10%, 20%, 30%, or more at their favorite stores? While store cards offer a legitimate opportunity to save, chances are you may be spending much more over time. Interest rates on store cards are generally much higher than on regular credit cards. U.S. Rep. Anthony Weiner did a study that revealed the average interest rate to be at 24% when surveying 35 major retail stores. With many credit cards you have a grace period where you are not charged interest on your purchases, but many store cards do not offer a grace period; they begin adding on finance charges from day one. If you are late on your monthly payment you will also likely get hit with a steep fee.

Buying in Bulk

Buying 20 apples in bulk may cost the same as 18 apples individually, but this doesn't mean you'll save by buying bulk. The best intentions won't help when you find you have so many apples they are going rotten. Before making the leap to buying multiples, figure out how much product you realistically need. Do not buy more, or you will find that much of it ends up in the garbage. Save bulk buying to items with a long shelf life. Keep an eye out. Even perfume loses scent and expires!

While most items bought in bulk tend to be cheaper, sometimes there isn't any cost difference. Why pay the same amount for product that is just going to take up space and go bad? Many times you can find a better deal using coupons or following sales.


Medical Care

The cheap insurance plan may sound great in theory, but it won't sound nearly as good when your son breaks his arm. Be sure to carry adequate insurance to cover yourself in the event of illness or injury. Don't skip a doctor visit because of a $30 co-pay; preventative care can save you much more in the long run! According to, approximately 50% of personal bankruptcies are caused by medical debts.

Fast Food

It is inexpensive, and it is easy, but should it really be a significant portion of your diet? While it may be cheap initially, poor quality food can lead to health problems, which leads to high medical costs. According to the Annual Review of Public Health, financial hardship and obesity are very closely linked. Unhealthy food containing sugar, fat, and salt is generally cheaper, which enables poorer people to focus on these substances as their primary source of nourishment. While it may be fine to grab a burger every once in a while, you shouldn't be trying to save money by eating fast food. It isn't worth the money- or your health.

Are you guilty of being penny-wise, pound foolish?

See results

Automatic Renewals

Many services are subscription based, and they will automatically renew without your intervention. Before you let your subscription lapse, check competitor's prices. It is very likely prices are not the same as they were a year ago. Be sure to keep track of which programs have an auto-renewal feature; opt-out if possible to give yourself the chance to re-evaluate it before enrolling for another term.

Are you guilty of saving a little to spend a lot? Be observant- don't be penny wise and pound foolish.


    0 of 8192 characters used
    Post Comment
    • indraprasad v profile image

      Indra prasad v 

      4 years ago from India, Kerala, Thiruvanantha puram

      Nice hub which help for savings and to adjust family budget. Above all single language...


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)