7 ‘Free’ Things That Actually Cost You Money
Written by
Jake Safane
Edited by
Gary Dudak
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For many people, trying to save money feels like running on a treadmill. As hard as you try to get ahead, you end up in the same place.
Part of the problem is that it’s easy to fall into bad financial habits, to the point where you don’t even realize you’re spending as much as you are. Sometimes, these unseen costs come from stuff that seems free but can actually cost you money in the long run.
To get ahead, consider the full financial picture, not just the headline cost. Watch out for “free” things like the following.
Buy Now, Pay Later
Even if you don’t pay any interest on Buy Now, Pay Later (BNPL) financing up front, choosing this option could still be expensive. For one, if you don’t make your payments on time, you could be hit with late fees and interest.
Perhaps more importantly, though, you’re not always feeling the impact of the purchase if you kick payments down the road. That can be a recipe for overspending, especially if you’re not budgeting for these future payments.
“Buy Now, Pay Later is engineered to encourage consumers to purchase more and borrow more,” said the Consumer Financial Protection Bureau.
Free Trials
Free trials sound like no-risk offers, but as many people have experienced, it’s easy to forget to cancel before you get charged for a membership. Even if you don’t have to put in any credit card information and aren’t charged unless you opt in for a subscription, a free trial can still hook you into spending money when you don’t necessarily need to.
It’s often easier to add something to your life than remove it. Before you had a smartphone, you probably didn’t feel like you had to be so tuned in and available to everyone at all times. But now that you have one, it’s hard to go back to a less digital life.
Similarly, if you got used to a product or service from a free trial, it might be hard to go back to life without it. So, before you sign up for a free trial, consider if you’d be willing to make that same purchase today. And if you go ahead with a free trial, set reminders to cancel in case you end up not liking it enough to pay for it.
Free Shipping
When companies don’t offer free shipping, you might feel like you’re getting ripped off. But businesses generally aren’t trying to be generous by offering these services for free. It’s part of their strategy to get you to shop there.
Maybe you have to hit a minimum, causing you to spend more than you would if you paid the actual cost of shipping. Or, the products might have the price of “free” shipping baked in.
That’s not to say that you shouldn’t use free shipping — just be mindful of the true costs. Compare prices from different stores, and if you’re trying to hit a minimum, ask yourself if you really need those extra items.
Free Event Tickets
If someone gives you free tickets to an event, like a concert or a game, you might feel like you scored an incredible deal. What’s better than free fun, right? But while you might want to take a friend up on their offer to gift you tickets, it’s important to consider your actual costs if you accept.
For example, you might have rideshare or parking costs to get to the event. While you’re there, you might spend money on food and drinks, often at inflated prices. Afterward, you might buy something for the ticket-giver as a token of your appreciation.
While all of that might be worth it to you, it’s important to know ahead of time what those costs could be. Otherwise, your free night out could quickly turn into a $100-$200 evening.
No-Fee Apartment Rentals
In some real estate markets, renters pay real estate agents a fee for renting an apartment. It can feel like highway robbery at times. The agent might do the bare minimum but still collect a hefty fee, like one month’s rent. So, some renters look for no-fee apartments.
However, these rentals often have the broker’s fee baked in. Sometimes apartment owners pay agents their own fees based on inflating the monthly rental price. Even if an apartment building has its own staff that can show and rent you an apartment without an upfront fee, the rental prices still might include the cost of this service.
So, compare the costs of different apartments with different fee structures. You might find that paying a fee is worth it for a lower monthly price. Or, you might try to negotiate down the monthly rent on a no-fee apartment if it seems overly inflated.
Social Media
Major social media platforms are typically free to use, although X, formerly known as Twitter, is considering a subscription model. That aside, social media can be expensive in the long run, because you’re being bombarded with both ads and regular content that encourage you to spend more.
Seeing that an acquaintance vacationed in Hawaii might make you feel a little jealous and cause you to book plane tickets, even if you don’t have the budget for a trip right now. Or, you might get hooked by a well-targeted ad to buy a cute but unnecessary item for your dog or baby.
In fact, 85% of Gen Z consumers say social media impacts their purchases, according to a survey by ICSC.
So, if you’re on social media and feel influenced to make a purchase, consider tactics like the 24-hour rule, where you give yourself time to decide if you really want to make that purchase, rather than making an impulse buy.
BOGO Deals
Buy one, get one (BOGO) free deals might seem like a great way to score a free item. But like with free shipping, companies typically aren’t giving away this extra item out of kindness. They want you to spend money.
A BOGO offer is essentially a 50% discount. But instead of getting the item you want for half off, you pay full price and get an extra item that you don’t necessarily need. Even if you and a friend split the cost of the two items, for example, you still might be roped in by the offer to buy something that you have little use for. If you wouldn’t pay full price for both items, think twice before jumping into a BOGO offer.
These are just a few of the many things in life that seem free but can cost money as a whole. Maintaining some skepticism when it comes to free offers and thinking twice about how you spend your time can help you avoid spending money unnecessarily.
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