When you’re at the grocery store, do you usually shop the same brands or just see what catches your eye? How about your schedule — do you tend to go on the same day each week or are your visits hit or miss? What about your bill — is it roughly the same amount each time?
There’s more than meets the eye when it comes to our grocery shopping habits. Believe it or not, recent academic research found that
the more consistent we are at the supermarket, the more likely we are to make our credit card payments on time.
In fact, there’s such a strong correlation that grocery transactions could even wind up being a worthwhile way for lenders to judge creditworthiness, the researchers suggest. In essence,
the data could be a new form of credit score.
The study, published last year in the journal
Management Science, established the link by comparing the grocery transactions and credit card payment history of over 30,000 consumers.
Even after controlling for variables in income, credit score and other sociodemographic factors, the authors — Eric T. Anderson of Northwestern University’s Kellogg School of Management, Jung Youn Lee of Rice University, and Joonhyuk Yang of the University of Notre Dame — determined that those who consistently pay their bills on time are more likely to shop on the same days, spend similar amounts, choose the same products, and buy things on sale.
(If you’re interested, the business school professors also found a connection with
what they bought. Those who always paid on time tended to buy fresh dairy, produce, and flour, “sloppy” payers opted for more convenience foods like deli items, and those who missed at least two payments in a row were more likely to buy meat, imported snacks, cigarettes, and energy drinks.)
So how might we explain this correlation? Why is it that responsible payers are better able to avoid the siren call of impulsive behaviors? The professors theorize that they might be flexing the same mental discipline in both cases, prioritizing longer-term outcomes over shorter-term pleasures.
Of course, we’ve all experienced a case of supermarket panic, where we have to seek out quick comfort foods at the last minute. Life happens, along with sick kids and late work nights. And there’s no shame in coping the best way you can.
But someday, if credit card issuers add your grocery track record to the list of things they check before approving your application, how do you think you’d fare? It’s worth thinking about. (Though, as the professors warn, would it be “ethically justifiable” to deny someone credit based on their cigarette habit?)
So what? Healthy financial habits, just like exercise and eating routines, can reinforce each other. To that end, it could be time to approach grocery shopping differently. Try developing a schedule, only buying what’s on your list, and keeping to a consistent
budget. See if you find it easier to pay that monthly credit card bill.
Related Reading
• 10 Ways to Save Time and Money at the Grocery Store (Academy of Nutrition and Dietetics)
• A Credit-Score Hangover Is Hitting America’s Riskiest Borrowers (The Wall Street Journal via MSN)
• How Long Does It Take to Build Credit? (SoFi)
Image Credit: PixelsEffect/iStock
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