This 1 money-saving tactic is wildly popular in America — but it’s becoming an illusion to make you spend more. Here’s why ‘spaving’ could be costing you thousands

What exactly is spaving?

Spaving tactics encourage you to spend more than you had originally intended so you can “save” money down the road. This is how many loyalty programs work, where you accumulate points that you can later redeem for rewards, discounts and other perks — like free flights or hotel rooms.

But there are other forms of spaving, too. For instance, you might buy multiple items to get a discount — buy two t-shirts and get one free! — even though you only need one. Or you buy more items than you need to “unlock” free shipping. Or, you book with a certain airline or hotel to get the points, even if it’s not the best price (or even the best alternative).

But if you end up spending $50 more than you planned to unlock free shipping from an online retailer — and avoid a $10 shipping fee — then you haven’t really saved that $10.

So why do so many of us still continue to spend more to save more? Spaving by its very nature is addictive, like receiving a treat (points) for a certain behavior (staying loyal to a company). Even if the reward isn’t that great — or not as great as it used to be — you want to keep accumulating points to reach that end “goal,” regardless of whether it makes financial sense.

Marketers fuel this behavior by creating a sense of urgency with limited-time deals and, in some cases, with rewards that have an expiration date. Some may also engage in what could be considered unfair practices, such as devaluing rewards you’ve already earned.

Indeed, this led to a probe into airline points, dynamic pricing and hidden fees last year by the U.S. Department of Transportation (USDOT).

“Points systems like frequent flyer miles and credit card rewards have become such a meaningful part of our economy that many Americans view their rewards points balances as part of their savings,” said then-U.S. Transportation Secretary Pete Buttigieg in a statement.

For example, the “true dollar value of rewards is hidden or unpredictable,” according to the USDOT statement, making it easier for airlines to devalue rewards without detection. “Hiding the dollar value makes it harder to compare the redemption price against the cash price across different rewards.”

Scammers are smarter than ever—are you protected?

The average American gets 2 scam calls and 3 scam texts every week. Think you can spot them? AI is making scams harder to detect, and in 2023 alone, Americans lost $12.5B to cybercrime. Don’t be next—learn how to protect yourself now!

Learn more

How spaving is quietly wrecking your budget

The downside to spaving is that you often end up spending more than you intended and buying items you don’t need to “save” money. This can derail your savings goals and lead to cash flow problems or maxed-out credit cards. Plus, when you buy more than you need, there are hidden costs to that clutter, from duplicate purchases to storage costs.

So if you have a spaving habit, how can you make sure it’s not wrecking your budget? First off, it helps to have a budget — and to stick with it. Try not to fall prey to limited-time deals (unless it’s something you really, really need) and ask yourself if you’d buy that particular item if you weren’t getting rewarded for it.

If you find you’re easily tempted, delete shopping apps on your phone — or, at the very least, turn off push notifications and unsubscribe from newsletters so you don’t experience FOMO (the fear of missing out). Avoid storing your payment details on online shopping sites; if you have to take the time to type in a credit card number, you may think twice before buying.

Before you buy, try to calculate the cash value of a deal. Many loyalty programs make this difficult — hence, the USDOT probe — but it can help you figure out if a deal is really a deal. For example, if a round-trip flight will cost you either $500 or 20,000 points, divide the cash price by the number of points to understand the value per point. In this case, it would be 2.5 cents per point.

Perhaps this is why loyalty is now in flux. The Marigold 2025 Consumer Trends Index, based on responses from more than 10,000 Americans, found that 75% of U.S. consumers will pay more for brands they trust, yet 36% have already jumped ship in the past year. “To win them back,” the report notes, “brands must deliver better loyalty programs.”

As Ewen points out in the Bloomberg article, consumers who want to avoid the pitfalls of spaving should instead be “program-agnostic, book the best ticket that is convenient and affordable and not be too loyal to any one company.”