Your odds of winning big? One in 38 million. Photo: Supplied / Lotto NZ
Most people spend money on things they think they probably shouldn't.
Maybe it's a coffee on the way to work that you could have made at home, or a new pair of shoes you didn't really need, bought because they were on sale.
Here are 10 things that experts say could be a waste of money.
Regular tech upgrades: Marketing expert Bodo Lang, from Massey University, said a lot of people wasted money by "upgrading" their phones every year or two. "Typically, the differences between old and new models are minor and, unless the old mobile phone has developed some fault or is not fit for purpose anymore, then it is best to hold on to it for a longer period of time, such as three to five years."
Subscriptions: If you have a lot of subscriptions you don't use, it can be a quick way to waste money. They might be for apps you've forgotten about, multiple streaming services you don't use or regular deliveries of vitamins you don't need. ASB recently launched a new "card tracker" feature that allows people to track and review their subscriptions. The bank said a third of ASB customers spent more than $100 a month on subscriptions.
"Consumers find online subscriptions very tempting because the initial outlay is fairly small," Lang said. "However, the cumulative cost over a year or five years can be staggering. Music and movie streaming are good examples of this. The desire to be informed, fit, or entertained in this particular way, is not a fundamental need, it is a want."
Extended warranties: When you buy a new appliance, you're often asked whether you want to pay for an extended warranty.
Consumer NZ investigative team leader Rebecca Styles said people were often paying hundreds of dollars for protection they already had under consumer law.
"Under the Consumer Guarantees Act (CGA), manufacturers and retailers are obliged to guarantee the products they sell are of an acceptable quality and fit for their purpose. Most appliances, certainly the big-ticket ones, can be expected to perform well for many years, not just the period covered by the manufacturer's warranty," she said.
"This means that if your product develops a fault when it's still reasonably new, you can have it repaired or, if that isn't possible, replaced - even if the manufacturer's warranty has expired."
Some cold and flu remedies: Consumer NZ research writer Belinda Castles said some of the claims made by cold and flu remedies did not stack up.
"Most over-the-counter medicines won't offer anything more than a placebo effect. The best thing you can do is ask your doctor for a sick note instructing you to take a few days off. This helps prevent you passing the virus on," she said.
Castles said paracetamol and ibuprofen were the best option for anyone feeling under the weather, and also cheaper than cold-specific treatments.
Nasal sprays could help with congestion but using them for more than a few days could create negative side effects.
Some "green" products: It's worth checking the credentials of anything you're paying more for, expecting to be getting an environmentally friendly product. Consumer NZ spokesperson Abby Damen said many people would pay a premium for "sustainable" products. "But we've assessed the claims on supermarket products and cosmetics and found many unsubstantiated 'green' claims that businesses couldn't back up. Don't fall for the green tax."
Wasting money on power: Leaving your heated towel rail on all the time can cost $3 a week. While that probably won't make a huge difference overall, looking for options to save money on your power bill could - it's worth checking regularly to see if there's a better deal out there.
Depending on how you use power, you could save with a time-of-use plan, which offers cheaper prices off peak. "You're likely overpaying by $300 to $500 a year if you haven't switched in the last two years. Use Powerswitch or MoneyHub and see for yourself - it's embarrassingly easy," said investment adviser Jeremy Sullivan.
Card surcharges: If you're tapping or waving your card when you make a purchase, you could be wasting 2 percent or more every transaction. If it's an option, inserting or swiping could be a better use of your money.
Lotto tickets: Sullivan said people were wasting money on buying Lotto tickets. "Your odds of winning big? One in 38 million. The true gamble is thinking it's a plan, not entertainment."
Travel insurance you already have: If you're travelling and have paid for your bookings on your credit card, you may find you already have travel insurance and don't need to pay for any more. Sullivan said people should check what cover they had. "Cards like ANZ Platinum or Westpac Mastercard include travel insurance - yet many still shell out $150-plus for a separate policy. Classic case of not reading the fine print."
Not negotiating your mortgage rate: Sullivan said people should also push their banks for better home loan rates when it was time to refix. "Kiwis are weirdly polite with banks. Just asking your bank for a better deal can shave 0.25 percent to 0.5 percent off your mortgage rate - worth thousands over time. No haggling needed, just ask."
Lang said what someone needed or did not need was unique to each individual.
"A need is typically something essential. Products that satisfy needs tend to have a strong functional appeal, rather than an emotional or symbolic appeal. Needs also tend to be fairly stable over time and across cultures. Lastly, needs also tend to be non-discretionary. If unmet, there's a real consequence. Think food, shelter, healthcare, education, basic clothing.
"Wants on the other hand tend to be desires shaped by culture, social trends, advertising, and identity. Wants tend to be subjective and highly variable and often reflect lifestyle, status, or emotional goals …Often wants are aspirational, symbolic, or even habitual.
"Consumers perception of wants and needs can be shaped by businesses. Many expensive purchases, such as a car or a kitchen appliance, with no discernible functional advantage over an alternative are about what consumers want, rather than what they need.
"But even in far less expensive product categories, consumers often buy products that are more about wants than needs. Think, anti-aging skin creams. Research by Consumer NZ has shown that sunscreen does a far better job of keeping skin looking young and healthy, compared to expensive skin care creams. But consumers are tempted by a premium price, suggestive advertising, and irresistible packaging."
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
