Best and Worst Dollar Store Buys

Best and Worst Dollar Store Buys

By Erin Burt, Kiplinger.com

When you're trying to save money, the dollar store can seem like a magical place. Abracadabra, everything's a buck or less! But just because something's inexpensive doesn't make it a good buy at such retail establishments.

Dollar Store Deals

We went shopping to find out what's a good deal at the dollar store, and what's not:

Party Supplies: DEAL

Everything from party invitations to decorations to balloons are worth buying at the dollar store. For instance, foil balloons easily run from $3 to $8 a pop at party-supply stores, gift shops and supermarkets. But you can get them for $1 each -- helium included -- at the dollar store.

Goodie bags, party favors and color-coordinated paper plates, napkins, cups and plastic cutlery are also a good buy.

Cleaning Supplies: DEAL

According to the Good Housekeeping Institute, the cleaners you buy at the dollar store work just fine. You probably won't find many name brands, but the ingredients are similar -- though perhaps more diluted. For everyday cleaning, they should do the trick. (For tougher cleaning jobs, you may have to spring for something more heavy-duty.)

You can also get a good deal on rubber gloves, sponges, and scrub brushes too.

Vitamins: NO DEAL

Don't scoop up your vitamins at the dollar store. Consumer Reports found that dollar-store multi-vitamins didn't always have the amount of nutrients claimed on the label. And others didn't dissolve fast enough to be absorbed by the body. You may be better off getting vitamins from a well-known store brand, such as Rite Aid, Walgreens or CVS.

Greeting Cards: DEAL

Greeting cards are nice, but are they really worth $4? We think it's the thought or sentiment that counts, not what you spend. Our local dollar store has a big selection of cards for every occasion, at 50-cents each. They're good-quality, too, so the recipient won't even guess that you scrimped.

Basic School Supplies: NO DEAL

While the dollar store has decent deals on many school supplies, we didn't find them to be much better than the prices at Walmart.

For pencils, notebooks, highlighters, crayons, glue sticks, scissors, sticky notes and more, it's best to stock up when they go on sale during back-to-school season (August-September). The rest of the year, you can hit either the dollar store or Walmart with confidence.

Seasonal or holiday items, such as Valentine's day, Easter eggs and Christmas tree decorations: DEAL

Whether you need to stuff Easter baskets or Valentine's day boxes, or you simply want to deck the halls for your favorite holiday, you might save a few bucks at the dollar store.

Seasonal paper plates and napkins (i.e. with pumpkins or Santa Claus on them) are also a good deal -- we found packs of 20 for $1. On decorations, bargains can be hit-or-miss and subject to opinion. For example, we found a set of icicle ornaments that looked beautiful on our tree this year, but the imitation pine wreaths looked too cheap and scraggly for our taste.

Pregnancy Tests: DEAL

Babies are expensive from the very beginning. The cheapest pregnancy test at our local Walgreens cost $8. But you can get one at the dollar store for a buck. Both are 99% effective, both test for hormone levels with similar sensitivity. And at $1 a pop, you can afford to test and re-test as much as you like if you simply don't believe your eyes.

Aspirin, ibuprofen and other medications: NO DEAL

Consumer Reports warns that aspirin and other medications may be left on the shelf past their expiration dates. It also points out that some labels may not say where the medicine was manufactured.

While there haven't been any safety concerns about dollar-store meds, generic aspirin from your local pharmacy or supermarket is probably a better bet -- and may not cost too much more.

Gift Wrapping Supplies: DEAL

You can get a 20-foot roll of gift wrap at the dollar store for a buck, while you'll pay at least three times that at big-box and party-supply stores. Gift bags cost up to $5 at other stores, depending on size. But at the dollar store, all sizes are $1. We also found huge savings on tissue paper, up to 75% off prices elsewhere. And don't forget the Scotch tape!

Toys: NO DEAL

It's tempting to buy toys for only $1. But there's definitely a trade-off in quality. Many dollar-store toys are cheaply made and they can be dangerous when they break.

Baby toys should generally be avoided because they will go directly into the mouth, and dollar-store toys may have unsafe levels of lead and phthalates, which are a class of chemicals found in soft plastics.

Canned food and other pantry items: NO DEAL

You may be able to get these cheaper elsewhere. For example, our nearby dollar store sells Green Giant canned vegetables and Goya beans for $1 a can. But we found the exact same items at Walmart for less, and generic brands at even bigger savings. Dollar-store cake and brownie mixes come in smaller packages so watch the unit price. Also, you should keep an eye on the expiration dates on food at the dollar store. They may be near or past their freshness date.

Batteries and Electronics: NO DEAL

Consumer Reports warns that dollar store electronics and extension cords may have fake UL labels and could be unsafe. It's better to spend a little extra for quality and safety. Also, cheap batteries may be prone to leakage, or may not run your gadgets as long as pricier brands. Many dollar stores sell carbon-zinc batteries which are less efficient than the alkaline variety.

Cooking and Dining Accessories: DEAL

We found spoons, spatulas, cheese graters, ice cream scoops and more at the dollar store for 50% to 90% off the prices at Target and Walmart. We also spotted wine glasses, dining plates and flatware for less. Almost anything is a good buy in the kitchen department, with the exception of knives, which may be flimsy or dull.

Word of the New Year

Do you know how bad you can feel when you wake up on New Years Day and the Holidays are over and you realize how much money you spent and how much you still owe?
If that is you, I want you to imagine the antithesis. A burden-less, free feeling of paying for Christmas with cash is... should I say, joyous!
If you find yourself in the former situation, it's time to make a plan. Plan today to pay for last year ASAP.
If you have any consumer debt, pay it off as quickly as possible. Sit down and make a practical budget, putting all your discretionary income towards your debt. When you get that all paid off, then start saving that towards next year's Christmas.
When you get to the holidays next year and you have consumer debt left over from last year DO NOT SPEND another cent on Christmas gifts.
Believe me when I say that the recipients of your gifts would rather you be free of debt than spend dollars and cents on gifts they can probably go without. You can give gifts of love and time instead. Think of service-oriented gifts instead. Babysitting for young parents, housekeeping for aging parents, and time camping out with your children will have far-reaching benefits and memories that will last a lot longer than any trinkets, toys, or things that will break, get lost, and wear out.
Plan now and plan well.
So the word of the New Year... I already forgot. haha. But you get my drift. Maybe the word was SAVE, maybe it was PLAN, maybe it was WISDOM. I don't know, just pick one and live with it. You will be happier come this time next year.

First Person: Why I Never Borrow Money

This is a very good article I found.

Steve Thompson
Associated Press
October 22, 2010

Like many 20-somethings, I made a lot of financial mistakes before I finally grew up. Nearly every dollar I spent through eight years of college and law school was borrowed before I actually earned the money to pay for it. Between student loans and credit cards, I graduated with significant debt. And the crushing weight of that debt is why I never borrow money now.

Debt Leads to Depression

This is not a scientific fact that I've verified, but rather a conclusion I drew after crawling out of debt for more than 10 years. Every time a bill arrived in the mail or someone called to ask why a payment was late, I grew more withdrawn and disheartened. I felt like a tire with a slow leak, and I often wondered if it would ever end. To borrow money is to impose upon yourself an unnecessary burden -- both financially and emotionally.

Debt Becomes a Habit

Safe within the comfortable bubble of college, the real world never intruded to remind me that borrowing money would one day lead to consequences. It was painfully easy to pull out my credit card to make a purchase or to apply for yet another student loan. The money I earned went directly to pay for the debt I had incurred, though it was never sufficient to cover all of it. It became a habit for me to use my income to pay off debt rather than to fund the necessities of life.

Debt Provides False Security

Because I knew that I had a credit card to pay for the things I wanted, there was no reason for me to stay in my dorm or apartment rather than go out with friends or to put off a purchase until I had saved the money to buy it. During those years in school, I never felt financially strapped. Then, upon graduation, the money I'd borrowed became an albatross I thought I'd never shake.

Debt Creates Stress

This seems like a given, especially if you've ever accumulated a massive amount of debt, but when you borrow money, stress is a constant companion. For years, I lived in fear of losing my home and everything else. I worried about whether I'd be able to cover utilities after paying on my debts, and I was always looking for ways to make a few extra dollars. It's no way to live.

Saving Is Rewarding

Now, when I want to buy something expensive, I save my money. My wife and I have a separate savings account that is devoted to vacations, electronics, conferences, and anything else we want to do. We don't borrow money to obtain the things we desire; we save for them until we can afford them. And it's far more satisfying than if we just plunked down our credit cards.

Saving Makes You Think

When I was borrowing money hand over fist, my purchases were never carefully considered. I took the caveman approach to spending money: Want, Find, Buy. Now that I never borrow money, every purchase gets run through my mind many times during a period of weeks or months. Often I decide it isn't worth the effort, and my money goes toward more worthy purchases.

There Are Exceptions

What if my child needed an expensive medical procedure for which I didn't have the cash? I'd borrow money. What if my car broke down and I didn't have the money to fix it? I'd probably borrow money.

There are exceptions to every rule. But my goal is to continue saving money until I've stowed enough cash in the bank to wipe out all those exceptions. In my opinion, there is no greater security on earth than the knowledge that I don't have to borrow money, ever, to take care of my family.

Wisdom in Food Storage

Storing food for emergencies is not only wise and brings peace of mind, but is also a hedge against inflation and protection against shortages.
Example: Two years ago I could buy a 15 oz. can of pumpkin on sale for $.79. Canned pumpkin has a shelf life of 2.5 to 3 years. If I had purchased enough pumpkin two years ago for use 2-3 years out, 1) I would have had pumpkin for the holidays last year during the shortage, 2)I wouldn't be spending $1.35 for a can to use this year during the continued shortage.
Hopefully the price will come down next year; it's not likely. But if it doesn't, I am buying enough at $1.35 that I will use next year in case it's $2.00! You may ask, "Well, that's just dumb, because what if the price comes back down? You will have wasted all that money"? When was the last time you saw a product drop 50% in price? I'm willing to gamble it won't!

Live without extravagance

Warren Buffet, one of the richest men in THE WORLD, lives in a five-bedroom house he bought in 1958 in Omaha, Nebraska for $31,500.
I don't know him well enough to say he doesn't live without extravagance in other aspects of his life, but I admire the aforementioned fact.
In today's world, people seem to be out to get as much as they can as quickly as they can. We used to keep up with the Jones and now we have to one-up the Jones.
I believe that the Lord blesses us with all things. I also believe we are accountable before Him for the way we use what He has blessed us with.
Do we use our assets for extravagance? To prove something to ourselves or others? To live only in the moment and give no thought for tomorrow? To help only ourselves, giving no thought for "our neighbor"?
At the judgment bar of God, when He gets out our financial/fiscal records, where will we stand? Did we stand in a great and spacious building and point fingers at others who had less than we did? Did we wear fine-twined linen with little children in our midst wore rags and no shoes or winter coats? Did we pay our tithes and offerings? Did we cheat our employer? Our neighbor? Our creditor?
Do not judge others, only yourself? Where do you stand?

Inflation in the near future??

It is likely that inflation and higher interest rates may be coming. Obama has flooded the economy with cash and these two results are likely to happen as a result. One as a consequence of more money in the system to buy the same number (or less) of goods and one is a consequence of trying to reign money back into reserve.

Do you have major purchases in your near future? You may be better off now to go ahead and make the purchase.

For an example: we have a very old furnace, air conditioner, and water heater. We know they will not last much longer. Every summer we hope and pray that the air conditioner will last one more season.

If we buy now we can take advantage of low prices, low interest rates and a tax credit.

If we wait until we have a problem and are forced to replace them at the last minute, we may have to buy them with inflated prices at high interest rates. In addition, the tax credit ends this year.

We do not have the cash now, and likely will not in the next couple of years. We are better off purchasing them now however and saving ourselves the headache of dealing with an urgent need and paying more due to inflation at a higher interest rate.

Are you going to need a car? Now may be the time.

Christmas Giving

If you watch the news, the buzz word for the week was BLACK FRIDAY. I don't like that term in the first place, but whatever. More importantly, all of us are trying to figure out how much we are going to spend on Christmas. This is not rocket science. How much did you save? How much do you have?

The average family spent just under $1800 last year. I guess we're average. However, it's NEVER wise to use debt as a way to finance gift-giving. I would feel just terrible if I knew you had gone into debt to buy me something I probably don't need in the first place.

You don't have to (and shouldn't) spend alot on gifts. The important thing is the thought in the giving, not giving just to give. Remember the reason for giving. We give as a symbolic gesture because HE gave.

Ideas for Mom and Dad under $20:
Wonderful scented candle (with a lid)
Lotion (scented or unscented)
Ear rings (pierced ears)
itunes card (we might be old, but we're not dead)
a tie
a scarf
stamps
restaurant gift cards
a nice flashlight
umbrella
measuring spoons
DVD/CD
Wii points
a handbag (with a cell phone pocket)
a wallet
pens
assorted greeting cards
magazine subscription