by Dr. Charles Alonzo Peters
I have to admit VH-1’s “Basketball Wives” is one of my guilty pleasures. Does it matter that very few of these women can actually call themselves “wives,” or that most of the scenes are scripted beyond belief?
But what really caught my attention was the most recent episode. Shopping with her man, Ashley Walker enters the upscale shoe boutique owned by basketball “wife” Evelyn. After some chit chat, Ashley picks out a pair of sharp red pumps and her man proceeds to pay for them. The camera quickly flashes a glimpse of the price tag – nearly $1,100 – for a single pair of shoes.
C’mon now. For that price you’d better be able to fly in those shoes. Yet nobody flinched as the shoes were boxed and put in a fancy little shopping bag. Is it just me or is $1,100 simply too much to pay for some darn shoes? I don’t care how much money you’re making.
But it gets better. Later in the same episode “wife” Royce hunts for an engagement ring with her fiance. The ring she covets with its big fat diamond retails for $95,000. Yes that’s nearly 100 grand for a single ring.
Now why should I be concerned with how much rich folk pay for a ring or pair of shoes? They have the money to buy whatever they want? Well as some behavioral economist surmise, the problem has to do with mental anchors.
Think about this. What is the average wedding supposed to cost? How much should a home cost? How much should we pay for an automobile? Most of us don’t know off the top of our head.
But we come up with an expected price based on what others have paid, articles we’ve read, and images we’ve seen in the media. This price is what behavioral economists call our mental anchor price.
If we see a bridal magazine advertise a wedding for $25,000 and hear our friends discuss their $24,000 wedding, then $24,000 becomes our mental anchor for the price of an average wedding, subtly influencing our budget decisions.
But what happens when media images blasted into our living rooms night after night nudge our mental anchors in an upward direction? Compared to images of $1,100 shoes, the $300 for our latest shoe purchase doesn’t seem so unreasonable anymore.
A $42,000 car that seems overpriced now becomes reasonable after watching a barrage of athletes and celebrities sporting $75,000, $100,000 even $250,000 sports cars. And paying $500,000 for a home suddenly doesn’t seem like such a stretch compared to the McMansions featured on “Housewives of Atlanta,” or MTV Cribs.
Perhaps that’s one of the reasons Americans are stretched to the limit, suffocating in a massive pile of debt.
The rich our becoming more wealthy than at any other time in US history. Combine this with our increasing cult like coverage of celebrities and the super wealthy, and we can only guarantee that our mental anchors will continue to be pushed skyward.
BMWK, what do you think? Does our media influence us to spend more than we need to? And is $1,100 really too much to pay for a pair of shoes?
Every Monday you can find great insight and tips on managing your greenbacks by Dr. Charles Alonzo Peters of MochaMoney.com here on BlackandMarriedWithKids.com.
I think $1100 is too much for 1 pr of shoes since it will get worn out just like any other pr. I agree that the media dictates how we spend money and what we spend it on. It’s so different when ppl can truly afford what they buy vs. when they try to keep up with the rich & famous. I like nice things, but I’ve made up my mind that no matter how much my finances increase I want to buy items that are reasonably priced. Also, note that many rich ppl file bankruptcy after a while due to overspending!
I think $1100 is too much for 1 pr of shoes since it will get worn out just like any other pr. I agree that the media dictates how we spend money and what we spend it on. It’s so different when ppl can truly afford what they buy vs. when they try to keep up with the rich & famous. I like nice things, but I’ve made up my mind that no matter how much my finances increase I want to buy items that are reasonably priced. Also, note that many rich ppl file bankruptcy after a while due to overspending!
This is a great point about mental anchors. Hopefully it will at least increase awareness. As the price goes up, generally you’re paying for things like scarcity, quality, and style. A $2000 handmade suit is not the same as a $100 suit on the rack at K&G. A 4 carat VS1 diamond with a platinum setting is not the same as 1/4 carat with a stainless steel setting. A $1500 Christian Louboutin is not the same as a Payless BOGO. Unfortunately, what it appears someone else is able to do suddenly becomes something we pressure ourselves to do. Whatever you spend your money on, make sure its really worth as much to you as you are willing to pay for it.
Not only are these “reality” shows causing some women to try to live beyond their means, it’s causing a riff between them and their mates. I don’t watch these shows because I hear about the drama from friends and truthfully I have my own life to live instead of watching someone elses. Most of the people that watch these shows try to imagine themselves living this lifestyle but when the show goes off their forced to come back to the reality that their finances aren’t like the housewives. If their mates cannot provide these things that they see on tv then they get depressed and start to become resentful.
I absolutely love the term “Mental Anchors.” Unfortunately these mental anchors are so much more than making financial purchases, but how a great percentage of our society begins to conduct the culture of how to live.
Great post, including admitting to watching Basketball ‘Knives.’
http://www.ruleyourwife316.com
Hey I guess we all have our vices – mine are Basketball Wives and Housewives of Atlanta – LOL
I totally agree. I had this conversation with my 26 year old. We didn’t want what the rich and famous had because we didn’t know what they had. Now every purchase they make is blasted on television and our kids want the same
I flinch at the thought of paying $2 for a bottle of water from a hotel vending machine, because some things aren’t worth the price tag no matter how much money you got.
Reality shows are so superficial. It centainly does not represent 90% of Americans–the middle class. I think everyone wants to be at least two steps above what they are now. And thanks to credit and other alternatives we can live above our means
I loooooove The Real Housewives – all of ’em. Well, with the exception of the DC housewives. They weren’t crass enough for me. Either way, I admit to fantasizing about living a life where I have the luxury of dining and shopping all day. However, if you watch any of the Real Housewives long enough you soon find that these people aren’t as wealthy as they lead on to be.
As for “mental anchors,” I’m anchored to whatever money is in my bank account.
Noooo,the media don’t influence me one bit,cause i know how to stay in the limit of my budget know clearance sign posted outside i’m not entrance…I’m not stepping out there in the water,and know i can’t swim…Then again,I really don’t get it…How is these young peoples riding around making blocks in the neighborhood…in they parents car,and gas is 4 or 5 dollar a gallon…Well,I guess if you got it…you can spent it…but,if you keep getting it out of the cookie jar,and putting nothing back in…OUCH!!!!!In the long-run it going to hurt…In my coming up days,I was taught,not to over spent my check… I know a lot of y’all getting tried of me talking about,back in the days,but,I get so upset,when i see so much wasted,I stop going by as much,of seeing my grandkids,like i use to,especial around super time,cause my grandbabies,always screaming about i don’t want this,i don’t like that,and they throw it in the trash…that hurted me deeply…that something i step over my bound,and start preaching before i knew it,about when i was a child, back in the days of my parents, that they wouldn’t allow this,we ate what was on our plates,or we didn’t eat…every body keeping telling me the world have change…Well. If that the case….I will welcome back the old way of authority….
The one thing I thing we need to realize is that the people we see on TV throwing around their cash like it’s nothing aren’t truly rich. They spend it as fast as they earn it and they don’t respect it. The truly rich spend money as well, but they also know how to keep it. If you have the cash to spend 1,100 ion a pair of shoes, then go for it. But if that shoe loses a heel or a strap breaks, the ones who respect their money will take it to a repair shop to get fixed. The ones that don’t toss it out like so much trash and buy a new pair for twice as much. The ones who respect money will buy a new suit and take it to a tailor, or buy that $100,000 car and drive it for 10 years. They also learn to make the money work for them. They invest it and live off the interest, depending on how much they’ve invested. I have serious doubts that the basketball players, and their “wives” are doing that for themselves.