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	<title>Business &#38; MoneyCategory: Psychology of Money &#124; Business &#38; Money &#124; TIME.com</title>
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		<title>Business &#38; MoneyCategory: Psychology of Money &#124; Business &#38; Money &#124; TIME.com</title>
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		<title>JC Penney Reintroduces Fake Prices (and Lots of Coupons Too, Of Course)</title>
		<link>http://business.time.com/2013/05/02/jc-penney-reintroduces-fake-prices-and-lots-of-coupons-too-of-course/</link>
		<comments>http://business.time.com/2013/05/02/jc-penney-reintroduces-fake-prices-and-lots-of-coupons-too-of-course/#comments</comments>
		<pubDate>Thu, 02 May 2013 09:45:35 +0000</pubDate>
		<dc:creator>Brad Tuttle</dc:creator>
				<category><![CDATA[Companies & Industries]]></category>
		<category><![CDATA[Future of Retail]]></category>
		<category><![CDATA[Odd Spending]]></category>
		<category><![CDATA[Personal Finance]]></category>
		<category><![CDATA[Psychology of Money]]></category>
		<category><![CDATA[Retail]]></category>
		<category><![CDATA[Saving]]></category>
		<category><![CDATA[Saving & Spending]]></category>
		<category><![CDATA[Smart Spending]]></category>
		<category><![CDATA[anchoring]]></category>
		<category><![CDATA[coupons]]></category>
		<category><![CDATA[discounts]]></category>
		<category><![CDATA[J.C. Penney]]></category>
		<category><![CDATA[JC Penney]]></category>
		<category><![CDATA[JCP]]></category>
		<category><![CDATA[jcpenney]]></category>
		<category><![CDATA[online coupons]]></category>
		<category><![CDATA[price anchoring]]></category>
		<category><![CDATA[promo codes]]></category>
		<category><![CDATA[Ron Johnson]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=79069</guid>
		<description><![CDATA[In early 2012, JC Penney promised the end of &#8220;fake prices&#8221;—ones that were inflated just so that shoppers could be tricked into thinking the inevitable discounts represented amazing deals. Well, it&#8217;s already time to welcome back discounts and inflated prices alike. Among other reasons, JC Penney CEO Ron Johnson lost his job recently because customers seemed to hate the no-coupons, no-discounting &#8220;fair and square&#8221; pricing that was a core part of the retailer&#8217;s dramatic 2012 makeover. In a new ad, JC Penney is apologizing for the changes made under Johnson. &#8220;It&#8217;s no secret. Recently, JC Penney changed,&#8221; the ad&#8217;s voice-over states. &#8220;Some changes you liked and some you didn’t, but what matters from mistakes is what we learn. We learned a very simple thing, to listen to you.&#8221; &#8220;Come back to JCPenney,&#8221; the ad implores customers &#8212; especially the ones who were turned off by Johnson&#8217;s initiatives, one assumes. Nothing is specifically mentioned regarding pricing, coupons, or sales. And yet the ad, and JC Penney&#8217;s overall effort to woo back customers, has a lot to do with pricing, coupons, and sales. Soon after Johnson stepped down as JC Penney CEO, analysts began anticipating the return of &#8220;sales galore&#8221; as a magnet to win over alienated shoppers. Indeed, at first glance, it appears as if the sales are back in a big way. A recent JC Penney brochure lists dozens and dozens of items on sale for Mother&#8217;s Day, and an online-only coupon (promo code: DEAL4ME) offered shoppers 15% off on purchases of $100 or less, and 20% off orders over $100 made by May 2. (MORE: The 5 Big Mistakes That Led to Ron Johnson&#8217;s Ouster at JC Penney) But JC Penney&#8217;s changes of late aren&#8217;t limited to an uptick in sales and coupons. As Reuters reported in late March, even before Johnson was fired, the retailer had quietly started raising its &#8220;everyday&#8221; prices—mainly so that stores could regularly put them on sale and hope that more shoppers bite. &#8220;Under the strategy, an Arizona crewneck T-shirt that had an &#8216;everyday&#8217;<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=79069&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Smart Spending</primary_category><primary_category_link>http://business.time.com/category/saving-spending/smart-spending/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/07/jc-penney-new-branding1.jpg?w=240</featured_image>
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			<media:title type="html">bradtuttle</media:title>
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		<title>Forget Lowballing: Bidding Wars Return in Hot Housing Markets</title>
		<link>http://business.time.com/2013/04/30/forget-lowballing-bidding-wars-return-in-hot-housing-markets/</link>
		<comments>http://business.time.com/2013/04/30/forget-lowballing-bidding-wars-return-in-hot-housing-markets/#comments</comments>
		<pubDate>Tue, 30 Apr 2013 15:18:07 +0000</pubDate>
		<dc:creator>Brad Tuttle</dc:creator>
				<category><![CDATA[Borrowing]]></category>
		<category><![CDATA[California Real Estate]]></category>
		<category><![CDATA[Psychology of Money]]></category>
		<category><![CDATA[Real Estate]]></category>
		<category><![CDATA[Real Estate & Homes]]></category>
		<category><![CDATA[Real Estate Markets]]></category>
		<category><![CDATA[Saving & Spending]]></category>
		<category><![CDATA[Smart Spending]]></category>
		<category><![CDATA[asking price]]></category>
		<category><![CDATA[bidding wars]]></category>
		<category><![CDATA[Connecticut]]></category>
		<category><![CDATA[Denver]]></category>
		<category><![CDATA[Hartford]]></category>
		<category><![CDATA[home listings]]></category>
		<category><![CDATA[New York City]]></category>
		<category><![CDATA[real estate agents]]></category>
		<category><![CDATA[San Francisco]]></category>
		<category><![CDATA[Seattle]]></category>
		<category><![CDATA[Underpriced Homes]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=78883</guid>
		<description><![CDATA[Are buyers being manipulated into overbidding for the relatively few attractive homes on the market? Earlier this year, the National Association of Realtors (NAR) announced that the number of homes for sale in the U.S. had reached a low not seen since 1999. More homes have hit the market since then, but Lawrence Yun, NAR&#8217;s chief economist, said in March that in many areas around the nation, the inventory of homes for sale is unlikely to keep up with the number of interested buyers. &#8220;Buyer traffic is 40% above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly. We&#8217;ve transitioned into a seller&#8217;s market in much of the country,&#8221; said Yun. &#8220;We expect a seasonal rise of inventory this spring, but it may be insufficient to avoid more frequent incidences of multiple bidding and faster-than-normal price growth.&#8221; (MORE: Code Police! 6 Things That May Be Surprisingly Banned in Your Front Yard) Bidding wars have been commonplace in Connecticut this spring, especially for mid-range properties ($300K to $600K), reports the Hartford Courant. Buyers are reportedly frustrated by &#8220;the slow trickle of new listings,&#8221; and &#8220;they are ready to pounce,&#8221; according to a local realtor, when an attractive property in their price range comes onto the market. Bidding wars have also been popping up in cities such as Denver, where half of new homes on the market have been selling in under 30 days. CNN Money recently noted that nine in 10 homes in hot markets in northern and southern California have attracted bidding wars, as have at least two-thirds of properties in Boston, New York City, Seattle, and Washington, D.C. &#8220;The only question is not whether a new listing will get multiple bids but how many it will get,&#8221; one agent in the Sacramento area explained. But is the increase in multiple bids a sign of a hot housing market &#8212; or one in which underpricing has become the standard? A bidding war is a sign that the home is probably underpriced—and the<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=78883&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Real Estate Markets</primary_category><primary_category_link>http://business.time.com/category/personal-finance-2/real-estate-homes/real-estate-markets/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/04/970_biz_housing_0430.jpg?w=240</featured_image>
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			<media:title type="html">Suburban homes in Massachusetts</media:title>
		</media:content>

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			<media:title type="html">bradtuttle</media:title>
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		<item>
		<title>How to Tame the Rising Cost of Prom Season</title>
		<link>http://business.time.com/2013/04/24/how-to-tame-the-rising-cost-of-prom-season/</link>
		<comments>http://business.time.com/2013/04/24/how-to-tame-the-rising-cost-of-prom-season/#comments</comments>
		<pubDate>Wed, 24 Apr 2013 09:45:47 +0000</pubDate>
		<dc:creator>Dan Kadlec</dc:creator>
				<category><![CDATA[Budgeting]]></category>
		<category><![CDATA[Financial Education]]></category>
		<category><![CDATA[Financial Planning]]></category>
		<category><![CDATA[Personal Finance]]></category>
		<category><![CDATA[Planning]]></category>
		<category><![CDATA[Psychology of Money]]></category>
		<category><![CDATA[The Economy]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=78232</guid>
		<description><![CDATA[The cost of prom night rose 5% this year to an average $1,139 per attendee—a staggering sum that should spark frank spending discussions in every household with a teenager. Only three years ago, the recession was fresh and families were vowing to tighten their belts for good. In that environment, prom spending on everything from dresses and tuxedos to limos and flowers totaled an average $807. That’s a lot. But as the economy improved spending shot passed $1,000 last year before jumping again this spring, according to an annual Visa survey. Prom spending has been called the new social arms race, as both parents and their teens seek to stand out and choose to spend extravagantly for one evening. “Prom has devolved into a competition to crown the victor of high school society,” Nat Sillin Visa’s head of U.S. Financial Education, said in a release. The most troubling aspect of this spending free-for-all is the recurring finding that those who can least afford it are spending the most. In households with less than $50,000 of annual income, spending plans this year average $1,245; parents who make more than $50,000 will spend an average of $1,129. Two years ago, Visa found that the top prom spenders had household income under $30,000. (MORE: Communication Breakdown: If You Think You’re Talking About Money, Your Kids Don’t Hear It) Prom night is also an opportunity for single parents to spend lavishly on their teens—forking over an average $1,563, which is almost double the $770 that married parents will spend. What’s going on here? People have not forgotten the lessons of the Great Recession. In a recent Fidelity survey nearly half said that even now they are saving more, reducing debt and building an emergency fund, and 78% of those taking such steps said the measures were part of permanent personal financial strategy. Yet prom night appears untouchable. Okay, splurging has its place. But keeping up appearances and one-upping the cool kids probably isn’t the wisest choice. Sticking to a budget almost always makes more<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=78232&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Budgeting</primary_category><primary_category_link>http://business.time.com/category/saving-spending/budgeting-saving-spending/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/04/892467-001.jpg?w=240</featured_image>
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			<media:title type="html">Gold bag, corsage and plastic cups on table, Prom</media:title>
		</media:content>

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			<media:title type="html">dankadlec</media:title>
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		<item>
		<title>How a Few Text Messages a Month Can Secure Your Retirement</title>
		<link>http://business.time.com/2013/04/22/how-a-few-text-messages-a-month-can-secure-your-retirement/</link>
		<comments>http://business.time.com/2013/04/22/how-a-few-text-messages-a-month-can-secure-your-retirement/#comments</comments>
		<pubDate>Mon, 22 Apr 2013 18:55:54 +0000</pubDate>
		<dc:creator>Dan Kadlec</dc:creator>
				<category><![CDATA[Financial Education]]></category>
		<category><![CDATA[Financial Planning]]></category>
		<category><![CDATA[Personal Finance]]></category>
		<category><![CDATA[Planning]]></category>
		<category><![CDATA[Psychology of Money]]></category>
		<category><![CDATA[Retirement]]></category>
		<category><![CDATA[Saving & Spending]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=76507</guid>
		<description><![CDATA[Reminders work. That’s why retailers sell $1 billion a year in post-it notes and virtually all alarm clocks come with a snooze button. Maybe it’s time to put the power of prompt to work in your savings strategy too. A growing body of research suggests that money reminders tweeted, texted, emailed or otherwise delivered through social media fall on receptive eyes. Researchers in the Philippines, Bolivia, and Peru found that banks reminding clients to save via text message and other means increased the likelihood of reaching a savings goal by 3.1% and the total amount saved by 6.3%. (MORE: The Hidden Cost of Text Refunds) A study led by Barbara O’Neill at the Rutgers Co-operative Extension found that Twitter and Facebook messages to adults raised awareness about money issues even if they didn’t always lead to behavioral change. In the study, banks tweeted clients up to nine times a day with messages like: Think yourself rich. Savings starts in ur brain, not ur bank account. Plug ur spending leaks &#38; save: snacks, soda, lottery etc. $5/ day = $1,825/ yr + interest. Small amts add up. Susan Beacham, a financial educator, regularly sends texts with money reminders to her teens. It’s a great idea. Young people send and receive an average of 3,339 texts a month. Remarkably, they actually read them. But texting money reminders can be for adults too, and now you can sign up for a helpful dose of savings prompts through the America Saves campaign from the Consumer Federation of America. The program is ongoing. But if you sign up by the end of April you will become eligible for a $500 reward. The texting service is simple. You register with a specific goal and will receive three texts a month through the end of the year reminding you to take steps toward reaching your goal. Standard texting charges apply. (MORE: Is the Global Economy Slowly Falling Apart) The most popular goals include: setting up an emergency fund, saving for education, repaying debt, saving for a home,<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=76507&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Financial Planning</primary_category><primary_category_link>http://business.time.com/category/planning/financial-planning/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/04/141475352.jpg?w=240</featured_image>
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			<media:title type="html">141475352</media:title>
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			<media:title type="html">dankadlec</media:title>
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		<title>Attention JC Penney Shoppers, Look Out for the Return of &#8216;Sales Galore&#8217;</title>
		<link>http://business.time.com/2013/04/16/attention-jc-penney-shoppers-look-out-for-the-return-of-sales-galore/</link>
		<comments>http://business.time.com/2013/04/16/attention-jc-penney-shoppers-look-out-for-the-return-of-sales-galore/#comments</comments>
		<pubDate>Tue, 16 Apr 2013 09:45:41 +0000</pubDate>
		<dc:creator>Brad Tuttle</dc:creator>
				<category><![CDATA[Apple]]></category>
		<category><![CDATA[Companies & Industries]]></category>
		<category><![CDATA[Future of Retail]]></category>
		<category><![CDATA[Odd Spending]]></category>
		<category><![CDATA[Psychology of Money]]></category>
		<category><![CDATA[Retail]]></category>
		<category><![CDATA[Saving]]></category>
		<category><![CDATA[Saving & Spending]]></category>
		<category><![CDATA[Smart Spending]]></category>
		<category><![CDATA[coupons]]></category>
		<category><![CDATA[deals]]></category>
		<category><![CDATA[discounting]]></category>
		<category><![CDATA[J.C. Penney]]></category>
		<category><![CDATA[JC Penney]]></category>
		<category><![CDATA[JCP]]></category>
		<category><![CDATA[jcpenney]]></category>
		<category><![CDATA[markdowns]]></category>
		<category><![CDATA[Mike Ullman]]></category>
		<category><![CDATA[Ron Johnson]]></category>
		<category><![CDATA[Sales]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=77832</guid>
		<description><![CDATA[After months of abysmal sales tallies, the Ron Johnson era is over at JC Penney. Now that Johnson&#8217;s &#8220;fair and square&#8221; no-coupons pricing policies have proved to be a failure, the department store will have to try something else to win back customers and stop the bleeding. But what? Mike Ullman, who was replaced as CEO when Johnson took over at JC Penney in 2011, and who began serving again as top executive when Johnson was pushed out, told the Wall Street Journal that he wasn&#8217;t planning on reverting to the old business model. &#8220;I wouldn&#8217;t recommend that we go back to the way J.C. Penney was when I left,&#8221; he said. &#8220;Things change.&#8221; And yet, in some ways the department store is clearly trying to resemble the JC Penney of old. Management has already announced that newspaper ads will feature coupons once again. Johnson seemed to find coupon usage distasteful and silly, likening it to a drug that consumers needed to be weaned off. A little over a year after JC Penney went &#8220;drug-free,&#8221; so to speak, coupons are back. (MORE: The 5 Big Mistakes That Led to Ron Johnson&#8217;s Ouster at JC Penney) Some retail experts think that the return of coupons is just the tip of the iceberg. John Sculley, former CEO of Apple, said on Bloomberg TV that it was absolutely essential for JC Penney to &#8220;get the cash flow of those old customers back into the store. And how did they do it before?&#8221; Sculley asked, before answering his own question. &#8220;They did it with sales.&#8221; A new study indicates that JC Penney&#8217;s shoppers are older, poorer, and more price-sensitive than the average customer at, say, Target or Macy&#8217;s. It&#8217;s assumed that an announcement of major markdowns is the quickest (and perhaps only) strategy to bring these customers back to JC Penney. Martin Sneider, a retail professor at Washington University, told the St. Louis Post-Dispatch that he anticipates a flood of deals and discounts, at least in the short run while JC Penney is desperate<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=77832&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Smart Spending</primary_category><primary_category_link>http://business.time.com/category/saving-spending/smart-spending/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/07/jc-penney-new-branding1.jpg?w=240</featured_image>
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			<media:title type="html">bradtuttle</media:title>
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		<title>Is Retail Therapy for Real? 5 Ways Shopping Is Actually Good for You</title>
		<link>http://business.time.com/2013/04/16/is-retail-therapy-for-real-5-ways-shopping-is-actually-good-for-you/</link>
		<comments>http://business.time.com/2013/04/16/is-retail-therapy-for-real-5-ways-shopping-is-actually-good-for-you/#comments</comments>
		<pubDate>Tue, 16 Apr 2013 09:45:02 +0000</pubDate>
		<dc:creator>Kit Yarrow</dc:creator>
				<category><![CDATA[Companies & Industries]]></category>
		<category><![CDATA[Odd Spending]]></category>
		<category><![CDATA[Personal Finance]]></category>
		<category><![CDATA[Psychology of Money]]></category>
		<category><![CDATA[Retail]]></category>
		<category><![CDATA[Saving & Spending]]></category>
		<category><![CDATA[Smart Spending]]></category>
		<category><![CDATA[alcohol]]></category>
		<category><![CDATA[psyhology]]></category>
		<category><![CDATA[retail therapy]]></category>
		<category><![CDATA[therapy]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=77697</guid>
		<description><![CDATA[You know the phrase, “When the going gets tough, the tough go shopping”? There just may be some wisdom in that. A survey conducted by TNS Global on behalf of Ebates.com found that more than half of Americans (52%, including 64% of women and 40% of men) admit to engaging in “retail therapy”—the act of shopping and spending to improve one&#8217;s mood. This echoes a previous study, published in the Journal of Psychology and Marketing, that revealed 62% of shoppers had purchased something to cheer themselves up, and another 28% had purchased as a form of celebration. But beyond the quick rush provided by making a purchase, is &#8220;retail therapy&#8221; actually therapeutic? Renowned San Francisco therapist Peggy Wynne, who is known to personally appreciate the mood-boosting quality of a great pair of shoes, says that it can be. “We all enjoy a little retail therapy now and then,&#8221; she told me. &#8220;In small, manageable doses it can soothe the soul. Shopping isn’t a problem when it’s done in moderation, just like moderate use of alcohol.” Of course, it&#8217;s possible to overdo consumption, in terms of drinking or shopping, or any number of other things for that matter. In fact, the warning signs that habitual shopping has become a problem have a lot of overlap with the classic tell-tale indications that you&#8217;re abusing alcohol. Wynne says that lying or hiding purchases from loved ones, feeling guilt or shame about shopping, missing work or other obligations to go shopping, and feeling that shopping is no longer fun but a necessity are all signs that your shopping habit has gotten out of hand. (MORE: Why We&#8217;re So Irrational When It Comes to Tax Refunds) I wouldn&#8217;t exactly use the word “therapy” to describe the effects of shopping. And everyone can agree that &#8220;stuff&#8221; won&#8217;t make you happy in the long run. Still, based on the research and countless interviews with consumers I&#8217;ve conducted over the years, I can point to five genuinely therapeutic benefits of shopping—provided, again, that it&#8217;s done in moderation. Easing<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=77697&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/04/16/is-retail-therapy-for-real-5-ways-shopping-is-actually-good-for-you/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Psychology of Money</primary_category><primary_category_link>http://business.time.com/category/personal-finance-2/economics-policy/psychology-of-money/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/08/107428671-e13446287357841.jpg?w=240</featured_image>
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			<media:title type="html">Woman carrying shopping bags</media:title>
		</media:content>

		<media:content url="http://1.gravatar.com/avatar/44310a1af940f994952d1e4db73096cd?s=96&#38;d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">TIME.com</media:title>
		</media:content>
	</item>
		<item>
		<title>Beyond Showrooming: 3 Quirky Ways Smartphones Are Changing How We Shop</title>
		<link>http://business.time.com/2013/03/29/beyond-showrooming-3-quirky-ways-smartphones-are-changing-how-we-shop/</link>
		<comments>http://business.time.com/2013/03/29/beyond-showrooming-3-quirky-ways-smartphones-are-changing-how-we-shop/#comments</comments>
		<pubDate>Fri, 29 Mar 2013 09:45:49 +0000</pubDate>
		<dc:creator>Kit Yarrow</dc:creator>
				<category><![CDATA[Companies & Industries]]></category>
		<category><![CDATA[Future of Retail]]></category>
		<category><![CDATA[Odd Spending]]></category>
		<category><![CDATA[Psychology of Money]]></category>
		<category><![CDATA[Publishing]]></category>
		<category><![CDATA[Retail]]></category>
		<category><![CDATA[Saving & Spending]]></category>
		<category><![CDATA[Smart Spending]]></category>
		<category><![CDATA[candy]]></category>
		<category><![CDATA[checkout line]]></category>
		<category><![CDATA[gum]]></category>
		<category><![CDATA[impulse buys]]></category>
		<category><![CDATA[impulse purchases]]></category>
		<category><![CDATA[iPhones]]></category>
		<category><![CDATA[Magazines]]></category>
		<category><![CDATA[showrooming]]></category>
		<category><![CDATA[smartphones]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=75965</guid>
		<description><![CDATA[When shoppers met the smartphone, they quickly learned that the device was ideal for shopping around &#8212; while shopping in person. They could do things like check Kelley Blue Book prices at car dealerships, or see if a dress in a store was being sold for less at the shop down the street—or online. More than half of Americans now own smartphones, and it&#8217;s this practice of &#8220;showrooming&#8221;—touching and feeling merchandise in stores before consulting the smartphone for a better deal—that seems to have most changed how consumers shop lately. But there are other, quirkier and somewhat unexpected ways that smartphones are affecting the retail scene. Here are three: Fewer Impulse Purchases in Checkout Lines The people waiting in a store checkout line are considered a captive audience—one that might be tempted into buying candy, soda, celeb magazines, and any number of goods, without thinking much of it. But smartphones seem to be more interesting than the magazine cover featuring Kim Kardashian’s latest antics. Single sale copies of magazines, largely purchased while waiting in line at the grocery store, are down 8.2% from last year. Sales of gum have taken a hit, too, declining 5.5% last year. Evidently, instead of amusing ourselves examining new gum flavors, we’re checking our emails or playing Angry Birds. (MORE: Why We&#8217;re So Irrational When It Comes to Tax Refunds) More Shopping Collisions In my research, I speak with lots of consumers, including Brett, who has been a weekly regular at San Francisco’s popular Saturday morning farmers market since it opened. Not anymore, though. “It’s always been crowded but now it’s impossible,&#8221; Brett told me. &#8220;Everyone’s looking down at their phone, blocking passageways, walking right into you sometimes. It’s rude.” Another shopper named Julie feels the same way about shopping at Ross. “I was trying to make my way around this rack and there’s this girl just texting away, oblivious,” she said. It&#8217;s not just consumers who tell me there&#8217;s an epidemic of smartphone-distracted shoppers out there, some who obliviously bump into strangers while staring<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=75965&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/03/29/beyond-showrooming-3-quirky-ways-smartphones-are-changing-how-we-shop/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Odd Spending</primary_category><primary_category_link>http://business.time.com/category/saving-spending/odd-spending/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/03/143174930-e1364416548141.jpg?w=240</featured_image>
		<media:thumbnail url="http://timebusinessblog.files.wordpress.com/2013/03/143174930-e1364416548141.jpg?w=240" />
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			<media:title type="html">Young couple shopping at supermarket</media:title>
		</media:content>

		<media:content url="http://1.gravatar.com/avatar/44310a1af940f994952d1e4db73096cd?s=96&#38;d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">TIME.com</media:title>
		</media:content>
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		<item>
		<title>What&#8217;s the Key to Money Success: Behavior or &#8216;Mechanics&#8217;?</title>
		<link>http://business.time.com/2013/03/28/whats-the-key-to-money-success-behavior-or-mechanics/</link>
		<comments>http://business.time.com/2013/03/28/whats-the-key-to-money-success-behavior-or-mechanics/#comments</comments>
		<pubDate>Thu, 28 Mar 2013 17:54:39 +0000</pubDate>
		<dc:creator>Dan Kadlec</dc:creator>
				<category><![CDATA[Financial Education]]></category>
		<category><![CDATA[Financial Planning]]></category>
		<category><![CDATA[Personal Finance]]></category>
		<category><![CDATA[Planning]]></category>
		<category><![CDATA[Psychology of Money]]></category>
		<category><![CDATA[Saving]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=74684</guid>
		<description><![CDATA[In the service of a broader discussion as to what works when it comes to teaching kids about money, I often tweet the published views of those who I believe know a thing or two about the subject. Not long ago, I tweeted a post by a fellow blogger here at Time.com, J.D. Roth, who also founded the Get Rich Slowly website and now blogs about More Than Money at jdroth.com. It seems that Roth riled some teachers in the field with his headline: Why Financial Literacy Fails. The teachers take issue with Roth’s assertion that “a constant push for more financial education is a waste of time if it’s only going to focus on mechanics.” I agree with the teachers. Mechanics are important. Facts and figures matter. Understanding the long-term miracle of compound growth is a key step toward convincing young people to put it to use. I tweeted Roth’s link because I thought he was spot on in his primary message: that a big part of the personal finance puzzle has to do with behavior—controlling impulses and tuning out media messages urging irresponsible spending. We are all in control of our financial destiny if we can just control that part of us that wants to spend unnecessarily. It&#8217;s a point worth making, and Roth did a nice job. (MORE: Why We&#8217;re So Irrational When It Comes to Tax Refunds) What follows is a thoughtful response by one teacher in the trenches, Brian Page, and Roth&#8217;s own response to Page&#8217;s comments. Brian Page teaches personal finance in Reading, Ohio. He is a member of the Working Committee for the President’s Advisory Council on Financial Capability. He is a Money Magazine Money Hero and blogs about financial education. This is what he has to say: Ardent supporters of financial education in our schools raised eyebrows after reading J.D. Roth’s headline Why Financial Literacy Fails. First, most of Roth’s suggestions are similar to current best practices in our classrooms. We get it. But I am also a strong supporter of content standards that<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=74684&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/03/28/whats-the-key-to-money-success-behavior-or-mechanics/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Psychology of Money</primary_category><primary_category_link>http://business.time.com/category/personal-finance-2/economics-policy/psychology-of-money/</primary_category_link>
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			<media:title type="html">dankadlec</media:title>
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		<title>Why Financial Literacy Fails</title>
		<link>http://business.time.com/2013/03/11/why-financial-literacy-fails/</link>
		<comments>http://business.time.com/2013/03/11/why-financial-literacy-fails/#comments</comments>
		<pubDate>Mon, 11 Mar 2013 14:00:21 +0000</pubDate>
		<dc:creator>J.D. Roth</dc:creator>
				<category><![CDATA[Personal Finance]]></category>
		<category><![CDATA[Psychology of Money]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=73727</guid>
		<description><![CDATA[I&#8217;m often asked what I&#8217;d do to improve financial literacy in the United States. The premise seems to be that if we teach young people about compound interest and two-cycle billing, this information will lead them to make better financial choices. I&#8217;m not convinced. When I was in high school, every senior was required to take a class in personal finance. We learned how to write checks, how to prepare a budget, and the history of the Federal Reserve. After learning some basic financial literacy, you might think my classmates and I were better prepared to make and save money. You&#8217;d be wrong. Now, 25 years later, we&#8217;re no better with money than those who were never given this sort of instruction. Personal finance is simple. Fundamentally, you only need to know one thing: To build wealth, you must spend less than you earn. Why, then, is it so hard for everyone to get ahead? (MORE: Economy Gains Steam Adding 236,000 Jobs) For some people, it&#8217;s systemic. There&#8217;s no doubt that some people are trapped in a cycle of poverty, and they truly need outside help to overcome the obstacles they face. But for most of us, the issue is internal: The problem is us. In other words, I am the reason that I can&#8217;t get ahead. And you are the reason that you can&#8217;t get ahead. It&#8217;s not a lack of financial literacy that holds us back, but a chain of bad behavior. One of the key tenets of my financial philosophy is that money is more about mind than it is about math. That is, our financial success isn&#8217;t determined by how smart we are with numbers, but how well we&#8217;re able to control our emotions — our wants and desires. There’s actually a branch of economics called behavioral finance devoted exclusively to this phenomenon, exploring the interplay between economic theory and psychological reality. And there&#8217;s a new wave of folks who are exploring the gamification of personal finance; they&#8217;re trying to turn money management into a game.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=73727&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Personal Finance</primary_category><primary_category_link>http://business.time.com/category/personal-finance-2/</primary_category_link>
		<media:content url="http://2.gravatar.com/avatar/242be8d6b1d3228012c58ba1e9014477?s=96&#38;d=http%3A%2F%2F2.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">jdroth</media:title>
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		<title>The Real Reason We Love Some Brand Logos — And Hate Others</title>
		<link>http://business.time.com/2013/03/04/the-real-reason-we-love-some-brand-logos-and-hate-others/</link>
		<comments>http://business.time.com/2013/03/04/the-real-reason-we-love-some-brand-logos-and-hate-others/#comments</comments>
		<pubDate>Mon, 04 Mar 2013 14:00:38 +0000</pubDate>
		<dc:creator>Martha C. White</dc:creator>
				<category><![CDATA[Advertising]]></category>
		<category><![CDATA[Companies & Industries]]></category>
		<category><![CDATA[Marketing]]></category>
		<category><![CDATA[Psychology of Money]]></category>
		<category><![CDATA[Apple]]></category>
		<category><![CDATA[branding]]></category>
		<category><![CDATA[brands]]></category>
		<category><![CDATA[logos]]></category>
		<category><![CDATA[Microsoft]]></category>
		<category><![CDATA[name brands]]></category>
		<category><![CDATA[The Gap]]></category>
		<category><![CDATA[tropicana]]></category>
		<category><![CDATA[Wendy's]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=73166</guid>
		<description><![CDATA[The fast food chain Wendy’s recently rolled out a new logo, its first such change in nearly three decades. The name is still written on a slight angle, but the phrase “old fashioned hamburgers” is gone entirely. And while the red-haired cartoon Wendy looks similar, her shoulders — with Little-House-on-the-Prairie-style sleeves — have been cropped from the picture. The Old West-style font and curlicues have also been replaced with a borderless white background and handwritten-script font the company calls “contemporary and iconic.” Updating to a more modern brand image is the most common reason companies give their logos a facelift, says Tim Calkins, clinical professor of marketing at the Kellogg School of Management at Northwestern University. But sometimes the desire for a little nip and tuck can backfire. A logo redesign is usually supposed to convey a message to consumers. It&#8217;s just that sometimes consumers don’t always hear the message. An attempt to redesign The Gap’s logo in 2010 kicked off such a furor that the company backpedaled before it even rolled out. A 2009 logo and packaging redesign for Tropicana orange juice was already introduced when consumers voiced their opinions loud and clear: They hated it. Parent company Pepsico ate the cost of scrapping the new look and reverting to the orange-with-a-straw and old-fashioned lettering OJ drinkers knew and loved. Why do we get so worked up about logos? What’s going on under the surface that makes us respond the way we do to seemingly innocuous elements? And how can companies that spend bundles on branding consultants and focus groups still manage to get such a basic building block of their identity so wrong? (MORE: Wendy’s Beats Burger King — By Rounding Its Hamburgers?) Experts say there are a handful of elements that play a big role in how we feel about companies’ logos, even if we aren&#8217;t really aware of what&#8217;s driving our responses: Color: Primary colors tend to be the most commonly used in logos, says Michael Walsh, associate professor of marketing at West Virginia University. &#8220;As consumers, we<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=73166&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Psychology of Money</primary_category><primary_category_link>http://business.time.com/category/personal-finance-2/economics-policy/psychology-of-money/</primary_category_link>
		<media:content url="http://0.gravatar.com/avatar/9a5a9e4f28beb5afb59b1202632d219a?s=96&#38;d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">marthacwhite</media:title>
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		<item>
		<title>Selling Your House? Choose Your Words Carefully</title>
		<link>http://business.time.com/2013/03/01/selling-your-house-choose-your-words-carefully/</link>
		<comments>http://business.time.com/2013/03/01/selling-your-house-choose-your-words-carefully/#comments</comments>
		<pubDate>Fri, 01 Mar 2013 10:45:40 +0000</pubDate>
		<dc:creator>Martha C. White</dc:creator>
				<category><![CDATA[California Real Estate]]></category>
		<category><![CDATA[Economics & Policy]]></category>
		<category><![CDATA[Economy & Policy]]></category>
		<category><![CDATA[Hawaii Real Estate]]></category>
		<category><![CDATA[Psychology of Money]]></category>
		<category><![CDATA[Real Estate]]></category>
		<category><![CDATA[Real Estate & Homes]]></category>
		<category><![CDATA[Real Estate Markets]]></category>
		<category><![CDATA[Luxury Real Estate]]></category>
		<category><![CDATA[real estate]]></category>
		<category><![CDATA[Real Estate Market]]></category>
		<category><![CDATA[Real Estate Online]]></category>
		<category><![CDATA[Residential Real Estate]]></category>
		<category><![CDATA[San Francisco]]></category>
		<category><![CDATA[Trulia]]></category>
		<category><![CDATA[Trulia.com]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=73274</guid>
		<description><![CDATA[Certain phrases pop up again and again in real estate listings, and these keywords offer a good indication of the prices a property will command. A listing promising a &#8220;once-in-a-lifetime opportunity,&#8221; for instance, has an average price of $3.4 million, while a &#8220;cute little bungalow&#8221; asks around $62,000, on average. Quirky terms pop up in local markets, too: You&#8217;ll never guess what one of the top phrases in San Francisco is. After sifting through its 4.5 million-property database, Trulia.com has released a new study naming the real estate listing phrases that appear often in the highest- and lowest-priced homes. As might be expected, most of the phrases that fill out the highest-priced listings evoke magnificent estates; in fact, &#8220;magnificent estate&#8221; is one of the top 10. (The average listing price of a magnificent estate: about $3.6 million.) The priciest phrase of all is &#8220;parlor floor,&#8221; which corresponds to an average property price of $4.9 million. &#8220;Parlor floor&#8221; is a common descriptor for  luxurious townhouses in New York City, which is notorious for high real estate costs. Even the 250-square-foot shoeboxes under consideration by a space-squeezed city government would start at $940 a month to rent in NYC. (&#8220;Shoebox,&#8221; by the way, is not a term you&#8217;re likely to see in real estate listings.) The phrase &#8220;highest level&#8221; — another example of urban market-speak — corresponds to a $3.4 million price tag, but most of the other terms imply more spacious surroundings: &#8220;formal gardens,&#8221; &#8220;paneled library&#8221; and &#8220;motor court&#8221; all make the top 10 list. (MORE: The Best Times to Buy or Sell a House) More specific phrasing seems to be a better bet for sellers: Trulia found that specifying oak or bamboo rather than just saying &#8220;hardwood&#8221; in reference to the floor corresponded with a higher listing price. At the other end of the pricing spectrum, listings warning about defective paint or a &#8220;mold-like substance&#8221; clocked in with average listing prices of around $45K. When there&#8217;s a lead paint warning, the average goes down to $40K. Buyers looking for a<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=73274&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Real Estate &amp; Homes</primary_category><primary_category_link>http://business.time.com/category/personal-finance-2/real-estate-homes/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/02/110052980-e1362065937282.jpg?w=240</featured_image>
		<media:thumbnail url="http://timebusinessblog.files.wordpress.com/2013/02/110052980-e1362065937282.jpg?w=240" />
		<media:content url="http://timebusinessblog.files.wordpress.com/2013/02/110052980-e1362065937282.jpg?w=240" medium="image">
			<media:title type="html">Couple looking into estate agents window</media:title>
		</media:content>

		<media:content url="http://0.gravatar.com/avatar/9a5a9e4f28beb5afb59b1202632d219a?s=96&#38;d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">marthacwhite</media:title>
		</media:content>
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		<item>
		<title>It&#8217;s Peak Season for Shopping Because You&#8217;re Depressed</title>
		<link>http://business.time.com/2013/01/21/its-peak-season-for-shopping-because-youre-depressed/</link>
		<comments>http://business.time.com/2013/01/21/its-peak-season-for-shopping-because-youre-depressed/#comments</comments>
		<pubDate>Mon, 21 Jan 2013 17:10:51 +0000</pubDate>
		<dc:creator>Brad Tuttle</dc:creator>
				<category><![CDATA[Companies & Industries]]></category>
		<category><![CDATA[Economics & Policy]]></category>
		<category><![CDATA[Personal Finance]]></category>
		<category><![CDATA[Psychology of Money]]></category>
		<category><![CDATA[Retail]]></category>
		<category><![CDATA[Saving & Spending]]></category>
		<category><![CDATA[Smart Spending]]></category>
		<category><![CDATA[Blue Monday]]></category>
		<category><![CDATA[Brad Klontz]]></category>
		<category><![CDATA[consumer psychology]]></category>
		<category><![CDATA[depression]]></category>
		<category><![CDATA[holidays]]></category>
		<category><![CDATA[January]]></category>
		<category><![CDATA[Mondays]]></category>
		<category><![CDATA[New Year's resolutions]]></category>
		<category><![CDATA[online shopping]]></category>
		<category><![CDATA[psychology]]></category>
		<category><![CDATA[resolutions]]></category>
		<category><![CDATA[seasonal affective disorder]]></category>
		<category><![CDATA[stress]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=67224</guid>
		<description><![CDATA[The most depressing day of the year supposedly takes place right around now. It&#8217;s also prime time to be tempted into shopping as a cure for the blues. According to a new survey conducted by Harris Interactive on the behalf of CouponCabin.com, it is currently peak &#8220;retail therapy&#8221; season. By far, survey respondents pointed to winter as the season in which they were most likely to try to boost their mood by going shopping. Overall, 36% of consumers said winter was the top season for retail therapy, while 11% pointed to summer, the second most popular choice. There is some dispute as to whether Blue Monday — supposedly the year&#8217;s most depressing day, according to one British psychologist&#8217;s theories — takes place on Jan. 14 or 21 this year. But by around this time, the theory goes, people should be thoroughly bummed because of factors such as dreary weather, week after week of shorter days and less sunlight, the hangover of holiday bills and the failure to keep New Year&#8217;s resolutions even for a couple of weeks. Mondays in general are also known to get people down, what with the weekend in the past and the prospect of a long workweek ahead. Hence the extremely unscientific concept of Blue Monday. (MORE: Why Shoppers Just Can&#8217;t Resist Clearance Sales) In the U.S., Jan. 21, 2013, is being celebrated as Martin Luther King Day, when many employees have the day off — giving them something to be happy about. But regardless of which particular day is tops for feeling low, there is plenty of evidence showing that people tend to be more depressed in winter and also plenty of evidence showing that people tend to shop as a way to combat the blues. Nearly half (45%) of Americans said they have gone on a shopping excursion solely because they were in a rotten mood, according to the survey. Interestingly, there&#8217;s also something to the idea that Monday is the peak day of the week for going on shopping splurges — at least<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=67224&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/01/21/its-peak-season-for-shopping-because-youre-depressed/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Psychology of Money</primary_category><primary_category_link>http://business.time.com/category/personal-finance-2/economics-policy/psychology-of-money/</primary_category_link>
		<media:content url="http://0.gravatar.com/avatar/f8de938518e7b986d552694ed99aa54d?s=96&#38;d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">bradtuttle</media:title>
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		<title>Why Shoppers Just Can&#8217;t Resist Clearance Sales</title>
		<link>http://business.time.com/2013/01/07/why-shoppers-just-cant-resist-clearance-sales/</link>
		<comments>http://business.time.com/2013/01/07/why-shoppers-just-cant-resist-clearance-sales/#comments</comments>
		<pubDate>Mon, 07 Jan 2013 10:47:44 +0000</pubDate>
		<dc:creator>Kit Yarrow</dc:creator>
				<category><![CDATA[Companies & Industries]]></category>
		<category><![CDATA[Credit Cards]]></category>
		<category><![CDATA[Marketing]]></category>
		<category><![CDATA[Odd Spending]]></category>
		<category><![CDATA[Personal Finance]]></category>
		<category><![CDATA[Psychology of Money]]></category>
		<category><![CDATA[Retail]]></category>
		<category><![CDATA[Saving & Spending]]></category>
		<category><![CDATA[Smart Spending]]></category>
		<category><![CDATA[cash]]></category>
		<category><![CDATA[Christmas sales]]></category>
		<category><![CDATA[clearance]]></category>
		<category><![CDATA[clearance sales]]></category>
		<category><![CDATA[discounts]]></category>
		<category><![CDATA[gift cards]]></category>
		<category><![CDATA[holiday shopping]]></category>
		<category><![CDATA[January]]></category>
		<category><![CDATA[markdowns]]></category>
		<category><![CDATA[original price]]></category>
		<category><![CDATA[Sales]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=65907</guid>
		<description><![CDATA[January is prime time for shoppers stalking &#8220;further reductions&#8221; on merchandise that didn&#8217;t sell for Christmas or during the post-Christmas and post-New Year&#8217;s sales. In other words, it&#8217;s prime time for consumers to buy things they shouldn&#8217;t, even at 75% off. For some shoppers, clearance racks are like catnip. The impressive differences between the &#8220;original prices&#8221; and the dramatically marked-down rates draw them in, leaving the impression that these deals are just too good to pass up. Yet the truth is that a &#8220;deal&#8221; isn&#8217;t a deal when you buy things you don&#8217;t end up using, and you spend money you wished you hadn&#8217;t. What&#8217;s more, in my research, I’ve found that sale-obsessed shoppers ultimately spend more money than non-sale shoppers. Consumers fixated on deals and discounts often purchase things that aren’t truly satisfying—and because they aren’t satisfied, they continue to shop. Additionally, the rush these consumers get from snagging what seems to be a bargain (85% Off!) has an addictive quality. The products they purchase, bring home, and live with are in some ways secondary. Why do we bite? Clearance merchandise isn’t called “an irresistible bargain” for nothing. Giant reductions and the way they’re presented in stores and on retailer websites tap into some primal psychological impulses. (MORE: 10 Big Retail Trends from the 2012 Holiday Shopping Season) Here are five insights as to why sales featuring major markdowns are extra tempting, along with some tips for making better decisions about what to buy this month, or any month, really. 1. Fear of Missing Out January sales are typically of the &#8220;clearance&#8221; variety. We understand this to mean that when something is sold, our opportunity to buy is gone for good. The concept inspires a fear of “missing out” that shoppers often don’t consciously notice, which only enhances the power of their emotional reaction. You may not understand why you&#8217;re compelled to jump on that sweater discounted by 80%. You may not even realize that you actually didn&#8217;t like it before the price was reduced. Yet the feeling of<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=65907&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
		<wfw:commentRss>http://business.time.com/2013/01/07/why-shoppers-just-cant-resist-clearance-sales/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
	<primary_category>Smart Spending</primary_category><primary_category_link>http://business.time.com/category/saving-spending/smart-spending/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/03/200446273-001-e13315592149021.jpg?w=240</featured_image>
		<media:thumbnail url="http://timebusinessblog.files.wordpress.com/2012/03/200446273-001-e13315592149021.jpg?w=240" />
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			<media:title type="html">Sale tags</media:title>
		</media:content>

		<media:content url="http://1.gravatar.com/avatar/44310a1af940f994952d1e4db73096cd?s=96&#38;d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">TIME.com</media:title>
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		<item>
		<title>Practice Makes Perfect: A New Way To Think About New Year&#8217;s Resolutions</title>
		<link>http://business.time.com/2013/01/02/practice-makes-perfect-a-new-way-to-think-about-new-years-resolutions/</link>
		<comments>http://business.time.com/2013/01/02/practice-makes-perfect-a-new-way-to-think-about-new-years-resolutions/#comments</comments>
		<pubDate>Wed, 02 Jan 2013 13:00:34 +0000</pubDate>
		<dc:creator>Gary Belsky</dc:creator>
				<category><![CDATA[Economics & Policy]]></category>
		<category><![CDATA[Personal Finance]]></category>
		<category><![CDATA[Psychology of Money]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=65185</guid>
		<description><![CDATA[By now you&#8217;ve doubtless heard or read more than a few stats about New Year&#8217;s Resolutions, in particular the surprisingly large number of people who make them  and the not-surprisingly, almost-as-large number of those folks who fail to keep them for longer than a few weeks or months. This discouraging fact holds true regardless of the kinds of self-improvements we undertake, whether they are health-related (three of the 10 most common resolutions) or financial in nature (the third most common type of New Year&#8217;s vow). But a recent study about dieting offers some new insights into a way we can permanently alter our behavior—and just maybe make this year&#8217;s resolutions stick.I&#8217;ve written previously about various ways we can &#8220;trick&#8221; ourselves into better resolution-keeping, including partnering-up, limiting our self-promises, removing small obstacles to success, anticipating our missteps and writing down our goals. All five can be of real value, but all essentially involve jumping into the deep end of the willpower pool. That&#8217;s how most people approach resolutions—or, for that matter, any behavior change. It turns out, though, that the best way to keep a resolution may be to practice the skills and thought-processes you&#8217;ll need to employ before you actually try. That&#8217;s the unavoidable conclusion of a study in the Journal of Consulting and Clinical Psychology, which showed that women who spent eight weeks practicing weight maintenance before starting their diets lost the same amount of weight as women who simply started dieting first. (MORE: The Top 5 Tech Biz Stories of 2012) More importantly, though, the so-called &#8220;Maintenance First&#8221; dieters were far more successful at keeping their weight off over the course of year, gaining only three pounds on average vs. seven pounds for &#8220;Weight Loss First&#8221; dieters. “Those eight weeks were like a practice run,&#8221; lead author Michaela Kiernan at the Stanford Prevention Research Center said when the study came out. In particular, the study was designed so that half the participants learned a set of what the researchers call &#8220;stability skills,&#8221; a toolkit of habits and behaviors &#8220;designed to optimize individuals&#8217; current<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=65185&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Psychology of Money</primary_category><primary_category_link>http://business.time.com/category/personal-finance-2/economics-policy/psychology-of-money/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2013/01/1500_82581128-1.jpg?w=240</featured_image>
		<media:thumbnail url="http://timebusinessblog.files.wordpress.com/2013/01/1500_82581128-1.jpg?w=240" />
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			<media:title type="html">1500_82581128-1</media:title>
		</media:content>

		<media:content url="http://1.gravatar.com/avatar/a30699adf88a56f38defec3d45222e08?s=96&#38;d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">garybelsky</media:title>
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		<title>Parent Holiday Conundrum: How to Walk the Fine Line Between Treating and Spoiling Your Kids</title>
		<link>http://business.time.com/2012/12/20/parent-holiday-conundrum-how-walk-the-fine-line-between-treating-and-spoiling-your-kids/</link>
		<comments>http://business.time.com/2012/12/20/parent-holiday-conundrum-how-walk-the-fine-line-between-treating-and-spoiling-your-kids/#comments</comments>
		<pubDate>Thu, 20 Dec 2012 14:00:09 +0000</pubDate>
		<dc:creator>Kit Yarrow</dc:creator>
				<category><![CDATA[Budgeting]]></category>
		<category><![CDATA[Psychology of Money]]></category>
		<category><![CDATA[Saving & Spending]]></category>
		<category><![CDATA[Smart Spending]]></category>
		<category><![CDATA[Work/Life Balance]]></category>
		<category><![CDATA[children]]></category>
		<category><![CDATA[Christmas]]></category>
		<category><![CDATA[family]]></category>
		<category><![CDATA[gifts]]></category>
		<category><![CDATA[holiday shopping]]></category>
		<category><![CDATA[kids]]></category>
		<category><![CDATA[parents]]></category>
		<category><![CDATA[spoiled kids]]></category>
		<category><![CDATA[spoiling]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=64790</guid>
		<description><![CDATA[Parents are in a pickle at this time of year, caught in between conflicting impulses: the urge to indulge kids with piles of goodies and the fear of raising entitled brats who get everything they want. Is it remotely possible to be Santa and a responsible parent at the same time? Moms and dads have obviously ambivalent feelings about the holidays. In a survey conducted last year, the majority of parents said they feel guilty if they don’t buy everything on their kid’s wish lists and yet they also think they’re spoiling their kids. Despite the fact that most parents acknowledge they spoil their children, especially around the holidays, we do it anyway, largely because the yearning to make a kid&#8217;s magical dreams come true—not to the mention the guilt—is overpowering. But why is it that the compulsion to indulge kids seems so much stronger nowadays? Here are a few reasons: Kids Have More Power in the House Over the past century, we’ve seen a steady narrowing of the power gap between parents and their children. Parents of every generation have loved their kids, but decade after decade, they&#8217;ve moved up the rungs of the typical family hierarchy&#8217;s list of needs. In the early 1900s, when many families still had farms and there were plenty of chores to be done, children were a source of economic security. It was assumed that kids had obligations to help the family that fed, housed, and clothed them. (MORE: Why Holiday Season &#8216;Self-Gifting&#8217; Is Such a Huge Trend) The children of Baby Boomers, on the other hand, were viewed as prizes that parents needed to guide, shape, and take responsibility for. Children were encouraged to look out for themselves, rather than focus on serving their families. Today&#8217;s parents often feel like it&#8217;s their job to make sure their kids&#8217; lives are filled with nonstop happiness and joy. All of which helps explain why kids today have more say in everything from what’s for dinner to where the family vacations—and also, of course, what winds<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=64790&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Smart Spending</primary_category><primary_category_link>http://business.time.com/category/saving-spending/smart-spending/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/12/presents.jpg?w=240</featured_image>
		<media:thumbnail url="http://timebusinessblog.files.wordpress.com/2012/12/presents.jpg?w=240" />
		<media:content url="http://timebusinessblog.files.wordpress.com/2012/12/presents.jpg?w=240" medium="image">
			<media:title type="html">Too Many Presents</media:title>
		</media:content>

		<media:content url="http://1.gravatar.com/avatar/44310a1af940f994952d1e4db73096cd?s=96&#38;d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">TIME.com</media:title>
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		<title>Beware Panic Shopping! How to Make a Last-Minute Gift Count</title>
		<link>http://business.time.com/2012/12/19/beware-panic-shopping-how-to-make-a-last-minute-gift-count/</link>
		<comments>http://business.time.com/2012/12/19/beware-panic-shopping-how-to-make-a-last-minute-gift-count/#comments</comments>
		<pubDate>Wed, 19 Dec 2012 16:53:26 +0000</pubDate>
		<dc:creator>Dan Kadlec</dc:creator>
				<category><![CDATA[Budgeting]]></category>
		<category><![CDATA[Decision Making]]></category>
		<category><![CDATA[Financial Education]]></category>
		<category><![CDATA[Financial Planning]]></category>
		<category><![CDATA[Paying With Plastic]]></category>
		<category><![CDATA[Personal Finance]]></category>
		<category><![CDATA[Planning]]></category>
		<category><![CDATA[Psychology of Money]]></category>
		<category><![CDATA[Smart Spending]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=64507</guid>
		<description><![CDATA[With just days remaining before Christmas, the panic-shopping season is upon us. This is a dangerous time of year when desperate consumers bust the budget on silly gifts like a cheeseburger telephone or wasabi lip balm. Forget re-gifting; such items will be in the trash by New Year’s Day. That won’t stop the bill from coming a couple weeks later. Three quarters of adults say they have not finished shopping, according to a new survey from Visa. They expect to spend $304, on average, in the final days leading to Christmas. These numbers are in line with previous years, suggesting that procrastination and wasteful spending is an annual rite. The numbers are fairly consistent across regions, with those in the south and Midwest having the fewest procrastinators (69%) and those in the west (79%) and northeast (78%) having the most last-minute shoppers. Men (72%) and women (74%) procrastinate at about the same rate. (MORE: Why the Fiscal Cliff May Cost You $6,000 in 2013) But men plan to spend another $399, on average, while women plan to spend an average of just another $218. Clearly, a lot of men haven’t yet gone to Jared. Last-minute shoppers over 65 plan to spend the most this week: an average of $402. Somewhat alarming is that young adults aged 18-24 plan to spend another $241, a potentially significant amount of money for an indebted college student or recent graduate in a tough labor market. “When it comes to reaching the Christmas panic shopping cliff, teens are particularly vulnerable because they are the least likely to make a holiday gift budget,” says Jason Alderman, senior director of global financial education at Visa. “Many teens will make the mistake of overspending in order to get a gift, any gift, in time for Christmas. But the people you’re giving gifts to don’t want you to overspend or go in debt, no matter how perfect the present.”  A California Institute of Technology study suggests that customers are willing to pay 50% more for impulse items they see in<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=64507&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Smart Spending</primary_category><primary_category_link>http://business.time.com/category/saving-spending/smart-spending/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/12/gifts.jpg?w=240</featured_image>
		<media:thumbnail url="http://timebusinessblog.files.wordpress.com/2012/12/gifts.jpg?w=240" />
		<media:content url="http://timebusinessblog.files.wordpress.com/2012/12/gifts.jpg?w=240" medium="image">
			<media:title type="html">Christmas</media:title>
		</media:content>

		<media:content url="http://1.gravatar.com/avatar/d69b05e696e822e7e41ae630be72226a?s=96&#38;d=http%3A%2F%2F1.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">dankadlec</media:title>
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		<title>Why Free Shipping Is Almost Universal &#8212; And Why You Should Be Wary of It</title>
		<link>http://business.time.com/2012/12/18/why-free-shipping-is-almost-universal-and-why-you-should-be-wary-of-it/</link>
		<comments>http://business.time.com/2012/12/18/why-free-shipping-is-almost-universal-and-why-you-should-be-wary-of-it/#comments</comments>
		<pubDate>Tue, 18 Dec 2012 15:00:55 +0000</pubDate>
		<dc:creator>Brad Tuttle</dc:creator>
				<category><![CDATA[Companies & Industries]]></category>
		<category><![CDATA[Future of Retail]]></category>
		<category><![CDATA[Odd Spending]]></category>
		<category><![CDATA[Psychology of Money]]></category>
		<category><![CDATA[Retail]]></category>
		<category><![CDATA[Saving]]></category>
		<category><![CDATA[Saving & Spending]]></category>
		<category><![CDATA[Smart Spending]]></category>
		<category><![CDATA[dan ariely]]></category>
		<category><![CDATA[Free]]></category>
		<category><![CDATA[free shipping]]></category>
		<category><![CDATA[Free Shipping Day]]></category>
		<category><![CDATA[freebies]]></category>
		<category><![CDATA[power of free]]></category>
		<category><![CDATA[shopping cart]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=64318</guid>
		<description><![CDATA[If you didn&#8217;t notice it, yesterday was celebrated in some quarters as Free Shipping Day. It does seem odd, though, to focus on a single day for free shipping when throughout the entire season free shipping has not really been viewed as a deal, but a requirement in order to close the deal. Free shipping has evolved to the point that it&#8217;s &#8220;an expectation from consumers all around the country,&#8221; a necessity for any store that has hopes of &#8220;remaining competitive&#8221; in today&#8217;s marketplace, to quote a recent Adobe Digital Marketing post analyzing how retailers can use free shipping promotions to their best advantage. While 2,000 or so retailers were expected to partake in Free Shipping Day with some sort of promise of free shipping on orders placed, it was also fairly easy to find thousands of free shipping offers on December 16 or 15 or 14 or … you get the idea. But what is it with free shipping anyway? Why has it become a necessity for many shoppers? Here, some explanation, in the form of five signs of just how powerful free shipping is to the e-retail transaction equation: Many of us will only buy online if there&#8217;s free shipping. In a Consumer Reports poll conducted earlier this season, 23% of consumers said that one of the ways they&#8217;ll try to save over the holidays is by &#8220;purchasing exclusively from websites that offer free shipping.&#8221; In another survey, conducted for Discover consumers were asked about what kind of online deals they were looking for and what were their holiday shopping &#8220;must-haves.&#8221; In both cases, free shipping was the top answer. In yet another poll (this one from UPS), &#8220;free/discounted shipping&#8221; was the top selection when consumers were asked about areas where they&#8217;d like to see improvements from retailers. And if free shipping isn&#8217;t offered? Well, that&#8217;s been shown to be the top reason consumers abandon their virtual shopping carts. (MORE: 10 Cool Holiday Gifts You Can Make With a 3-D Printer) Retailers wouldn&#8217;t be including free shipping on<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=64318&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Smart Spending</primary_category><primary_category_link>http://business.time.com/category/saving-spending/smart-spending/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/12/108225815.jpg?w=240</featured_image>
		<media:thumbnail url="http://timebusinessblog.files.wordpress.com/2012/12/108225815.jpg?w=240" />
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			<media:title type="html">Free Shipping</media:title>
		</media:content>

		<media:content url="http://0.gravatar.com/avatar/f8de938518e7b986d552694ed99aa54d?s=96&#38;d=http%3A%2F%2F0.gravatar.com%2Favatar%2Fad516503a11cd5ca435acc9bb6523536%3Fs%3D96&#38;r=G" medium="image">
			<media:title type="html">bradtuttle</media:title>
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		<title>Can the Federal Government Really Deter Insider Trading?</title>
		<link>http://business.time.com/2012/12/10/can-the-federal-government-really-deter-insider-trading/</link>
		<comments>http://business.time.com/2012/12/10/can-the-federal-government-really-deter-insider-trading/#comments</comments>
		<pubDate>Mon, 10 Dec 2012 13:00:44 +0000</pubDate>
		<dc:creator>Sam Gustin</dc:creator>
				<category><![CDATA[Banking]]></category>
		<category><![CDATA[Financial Regulation]]></category>
		<category><![CDATA[Psychology of Money]]></category>
		<category><![CDATA[Rajat Gupta]]></category>
		<category><![CDATA[Scams]]></category>
		<category><![CDATA[Wall Street & Markets]]></category>
		<category><![CDATA[White Collar Crime]]></category>
		<category><![CDATA[insider trading]]></category>
		<category><![CDATA[Ivan Boesky]]></category>
		<category><![CDATA[Michael Milken]]></category>
		<category><![CDATA[Preet Bharara]]></category>
		<category><![CDATA[SAC Capital]]></category>
		<category><![CDATA[sec]]></category>
		<category><![CDATA[Securities and Exchange Commission]]></category>
		<category><![CDATA[Steven A. Cohen]]></category>
		<category><![CDATA[Weight Watchers]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=63580</guid>
		<description><![CDATA[It&#8217;s been two decades since Michael Milken, a.k.a. the junk-bond king, pleaded guilty to securities fraud following a blockbuster insider-trading investigation that shined a light on bad Wall Street behavior during the go-go 1980s. At the time, federal prosecutors hoped the Milken guilty plea, and the conviction of fellow Wall Street titan Ivan Boesky, would send a powerful message to Wall Street that there are serious consequences for insider trading. (Milken was never convicted of insider trading. He pleaded guilty to six counts of securities fraud and ultimately served two years in prison.) Since then, however, insider trading has continued unabated, with a series of high-profile cases, including the conviction of lifestyle guru Martha Stewart, who served five months in prison for trading shares of ImClone Systems based on material, nonpublic information she received from her broker. In short, whatever message federal prosecutors thought they&#8217;d been sending to Wall Street does not appear to have gotten through. Manhattan U.S. Attorney Preet Bharara, working together with the Securities and Exchange Commission (SEC), is aiming to change that. Since taking office in 2009, Bharara has charged 75 people with insider trading and obtained 69 convictions or guilty pleas, according to the New York Times. (Six cases are still pending, and there are surely more to come.) Bharara&#8217;s probe has already led to the convictions of former Galleon Group founder Raj Rajaratnam and former Goldman Sachs director and former McKinsey managing director Rajat Gupta. Rajaratnam is currently serving an 11-year prison sentence, and in October, Gupta was sentenced to two years in prison. (Earlier this year, TIME featured Bharara in a cover story and later named him to the TIME 100.) (MORE: Preet Bharara — the Street Fighter) Bharara&#8217;s latest target appears to be SAC Capital Advisors, the giant hedge fund run by billionaire Wall Street titan Steven A. Cohen. Last month, federal prosecutors charged Mathew Martoma, a former portfolio manager at SAC subsidiary CR Intrinsic Investors, with acting on confidential information he received from a neurology professor who played a key role in a major pharmaceutical trial. Martoma is the seventh former SAC employee to be linked to insider trading. In<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=63580&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>White Collar Crime</primary_category><primary_category_link>http://business.time.com/category/uncategorized/white-collar-crime/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/12/rtr2maa4.jpg?w=240</featured_image>
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			<media:title type="html">Hedge fund manager Cohen, founder and chairman of SAC Capital Advisors, listens to a question during an interview at the SALT Conference in Las Vegas</media:title>
		</media:content>

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			<media:title type="html">shgustin</media:title>
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		<title>Are Holiday Sales Statistics Juiced? How Retail Sales Totals Can Vary By Billions</title>
		<link>http://business.time.com/2012/12/04/are-holiday-sales-statistics-juiced-how-retail-sales-totals-can-vary-by-billions/</link>
		<comments>http://business.time.com/2012/12/04/are-holiday-sales-statistics-juiced-how-retail-sales-totals-can-vary-by-billions/#comments</comments>
		<pubDate>Tue, 04 Dec 2012 17:01:18 +0000</pubDate>
		<dc:creator>Brad Tuttle</dc:creator>
				<category><![CDATA[Companies & Industries]]></category>
		<category><![CDATA[Psychology of Money]]></category>
		<category><![CDATA[Retail]]></category>
		<category><![CDATA[Saving & Spending]]></category>
		<category><![CDATA[Smart Spending]]></category>
		<category><![CDATA[Adobe Digital Marketing]]></category>
		<category><![CDATA[Black Friday]]></category>
		<category><![CDATA[comScore]]></category>
		<category><![CDATA[Cyber Monday]]></category>
		<category><![CDATA[IBM]]></category>
		<category><![CDATA[National Retail Federation]]></category>
		<category><![CDATA[online shopping]]></category>
		<category><![CDATA[ShopperTrak]]></category>
		<category><![CDATA[thanksgiving]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=62797</guid>
		<description><![CDATA[By one estimate, retail sales hit $59 billion over Black Friday weekend. Or was the sales total a mere $22 billion, as another index stated? Similarly, online sales on Cyber Monday may have reached $1.46 billion or $1.98 billion, depending on which set of statistics you prefer. The most widely-cited data from the Black Friday weekend came from the National Retail Federation (NRF), which announced that &#8220;total spending reached an estimated $59.1 billion&#8221; from the period starting on Thanksgiving Thursday stretching through Sunday. Simple enough—except for the presence of another set of stats indicating that the total was significantly lower than that. The research firm ShopperTrak offered these numbers last week in a press release regarding Black Friday weekend: Retail sales increased 2.7 percent, with shoppers spending about $22 billion across the weekend’s four days. Thursday’s “door-buster” deals drove sales and traffic earlier in the weekend. Which of these estimates—$59 billion vs. $22 billion—is more accurate? And why they heck aren&#8217;t they at least in the same ballpark? (MORE: Sold Out Already? Holiday Season&#8217;s Early Hot Sellers) Let&#8217;s address the latter question first. ShopperTrak founder Bill Martin explained to me that his company, which specializes in counting in-store foot traffic, estimates a national sales total just for what are known as GAFO purchases. GAFO stands for General merchandise, Apparel, Furniture, sporting goods, electronics, hobby, books and Other related store sales. &#8220;You can think of these sectors as what you purchase with disposable income,&#8221; said Martin. Census.gov notes that &#8220;GAFO represents sales at stores that sell merchandise normally sold in department stores.&#8221; Many, many other purchases, including goods at drugstores, supermarkets, auto part shops, catalogue sales, and all manner of online shopping, are not included in GAFO, nor in ShopperTrak&#8217;s estimates. All of the purchases just mentioned are, however, included in NRF&#8217;s more impressive sales total. &#8220;They&#8217;re looking at a much broader segment of purchases,&#8221; said Martin. Sure, the NRF&#8217;s tally incorporates typical holiday gift items, such as clothing, DVDs, video games, skiing equipment, and jewelry, as well as the rapidly<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=62797&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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		<slash:comments>0</slash:comments>
	<primary_category>Smart Spending</primary_category><primary_category_link>http://business.time.com/category/saving-spending/smart-spending/</primary_category_link>
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			<media:title type="html">bradtuttle</media:title>
		</media:content>
	</item>
		<item>
		<title>Kids and Allowance: The Debate that Divides Us</title>
		<link>http://business.time.com/2012/12/03/kids-and-allowance-the-debate-that-divides-us/</link>
		<comments>http://business.time.com/2012/12/03/kids-and-allowance-the-debate-that-divides-us/#comments</comments>
		<pubDate>Mon, 03 Dec 2012 13:00:20 +0000</pubDate>
		<dc:creator>Dan Kadlec</dc:creator>
				<category><![CDATA[Decision Making]]></category>
		<category><![CDATA[Financial Education]]></category>
		<category><![CDATA[Financial Planning]]></category>
		<category><![CDATA[Personal Finance]]></category>
		<category><![CDATA[Planning]]></category>
		<category><![CDATA[Psychology of Money]]></category>

		<guid isPermaLink="false">http://business.time.com/?p=62638</guid>
		<description><![CDATA[In our world of increasing personal financial responsibility, where the social safety net is crumbling and individuals must learn to cope with complex money choices like how to save for retirement and choose the right mortgage, one of the most vigorously debated and polarizing personal finance questions out there is: Should kids have to work for their allowance? No kidding. This subject generates more interest than the fiscal cliff; it turns out parents, gurus, academics, and financial advisers like old hippies to a Neil Young concert. In one corner you have financial radio host Dave Ramsey and all-around money guru Suze Orman, who both counsel parents to tie allowance directly to chores. No workee, no payee. They don’t even like the world “allowance.” Ramsey calls it “a commission” and Orman prefers the term “work pay.” Orman, by the way, has no children. That doesn’t mean she can’t have theories, but child rearing often calls for non-prescriptive solutions. Every kid is different. Ramsey is the father of three. Presumably he’s had a hand in raising the youngsters. (MORE: Are We Watching Another North American Financial Crisis Unfold?) In another corner you have the godfather of the financial literacy movement, Lewis Mandell, professor emeritus of finance and managerial economics at SUNY Buffalo. Mandell authored the nation’s first prominent financial-literacy scoring system for the JumpStart Coalition for Personal Financial Literacy. He says parents should pay no allowance period—neither as an entitlement nor as a reward for chores. Parents should simply pay for the things they want their kids to have, in Mandell’s view, which he bases on a study that found kids who received no allowance scored highest on financial literacy tests. That result surprised even him and led to his maverick opinion. Mandell doesn’t have a lot to say about whether allowance is better tied to work or given as an entitlement. Either way, it is helpful as an educational tool only if parents talk with their kids about managing their money. In a third corner you have those who believe that<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=business.time.com&#038;blog=31173800&#038;post=62638&#038;subd=timebusinessblog&#038;ref=&#038;feed=1" width="1" height="1" />]]></description>
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	<primary_category>Financial Education</primary_category><primary_category_link>http://business.time.com/category/planning/financial-education/</primary_category_link><featured_image>http://timebusinessblog.files.wordpress.com/2012/12/78394815.jpg?w=240</featured_image>
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			<media:title type="html">78394815</media:title>
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			<media:title type="html">dankadlec</media:title>
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