Duke Credit Union Offers Free Financial Seminars

Jeff Dowd, associate chief operating officer for the Duke University Federal Credit Union, has some spending advice.

Before opening your wallet, ask, "Will I really use this product? Are there underlying motives for buying it?"

Dowd, who leads the free credit union seminar, "Psychology of Spending," is helping Duke employees understand their relationship with money. The next sessions are Nov. 14 and Dec. 19.

During the September session, Dowd told participants to control the urge to splurge and explained that knowing what money means generates more control over buying and saving.

Ask Before Opening Your Wallet

• What would happen if I didn't get it?
• Will I really use this product?
• Are there motives for buying it?
• Do I own anything that provides the same use?
• Did I feel a need for it before I saw it in the mall?
• Did the sales clerk influence my desire for it?
• What will I have to give up to afford it?

What is money? he asked. Freedom? Power? Security? Love?

"How you perceive and use money is influenced by your personality type," Dowd said.

Dowd distributed a quiz that helped participants recognize whether they view wealth as affording them freedom, power, security, love or some combination. Participants explained how they spend money -- on shoes, clothes, toys for all ages. Dining out topped the list. Dowd said that even "good" spenders are vulnerable to buying unnecessary items just because they have a coupon or because the items are on sale.

"Wal-Mart is doing away with layaway, because customers aren't using it," he said. "What are they doing? Buying with a credit card and paying interest."

Studies show that 40 percent of Americans spend more money than they earn, Dowd said. Advertising, easy credit and experiential shopping -- the mall is an enjoyable place to meet friends, for instance -- encourage people to spend.

Dowd suggested questions people should ask themselves before they buy to make them more conscious of spending. He offered tips on getting the most from a paycheck and reminded participants that spending habits can affect credit ratings.

"Your credit rating affects you in everything from applying for a job to opening an account; it determines the interest rate on your mortgage," Dowd said.

Glenna Klein, a social work intern in Duke's neonatal intensive care unit, was drawn to the seminar by its title. She particularly enjoyed learning about her spending style. Relatively new to Durham, she also appreciated the opportunity to network with others outside of her department at Duke.

"The seminars are a way to meet people and take advantage of some of these incredible workshops," Klein said. "The calendar is full of many classes that I'm looking forward to taking."