A recent study from Tilburg University and the University of Chicago (see link below), estimate that American’s waste $44 billion annually on the purchase of name brands, while they could buy the exact same product via a store brand alternative.
On average, store brand products run 50% less than name brand. If you’re looking to find a quick way to cut the cost of your expenses, it might be easily found in changing from name brand to generic items. If you’re financially savvy, you likely already practice this approach when shopping. For example, if you go to Costco, they carry Aleve in a generic form, which sells for less than the name branded product and provides you with a greater quantity of pills.
Don’t get duped into having your emotions played with via such marketing messages as “Choosy mom’s choose jif!” Please, if you’re a choosy mom and care about your child’s college fund, you’re going to buy the generic at a discount. While you’re at it, you can teach your child/children a personal finance lesson. Killing two birds with one stone.
If you’re a brand name addict, take a step back and reevaluate what you’re doing and why you’re doing it. Your financial future matters more than the financial future of General Mills or Pfizer drug company. If a generic exists, give it a try and make sure to think about what you’re saving in percentage terms, not just dollars. Paying $5 rather than $7 means you just saved nearly 30%!