Paper or Plastic?

When your friendly grocer asks this question, they're usually wondering what kind of grocery bag you want to take your graham crackers and applesauce home in. While UTMGal and I were waiting in line waiting to check out with our milk and bread, I noticed something I hadn't seen before. Tucked in between the king-size Snickers, the bubblegum and the batteries was financial advice. That's right - financial advice. We were shopping at a Smith's (which is owned by Krogers) and I picked up three financial advice pamphlets titled:
- 1-2-3 Rewards MasterCard (0% intro APR on Balance Transfers for 12 months)
- Pet Insurance (Because pets are family, too)
- Identity Theft Protection (You need more than a shredder)

I thought they were advertisements for another company, but nope, the website listed on the front of the pamphlets is: www.smithsfoodanddrug.com/finance (check the link for a picture of all of the different brochures and advice they offer.)
They include loans and other types of insurance.

So... would you take financial advice from your grocery store? After reviewing the pamphlets, it looks like the services Smith's offers are bare bones, and not always essential. For example, take the pet care brochure, which features this quote:

"Cinnamon, just like a kid, had an unexpected injury. Having PetFirst insurance (the pet insurance Smith's offers) enabled me to concentrate on her well-being and recovery. Instead of the $1,000 cost, 90% was paid for insurance! Now I can spend my money spoiling Cinnamon! I highly recommend PetFirst!"

Now I understand loving your pet - my family had an old cocker spaniel while I was growing up and as she got older and older and started to lose her sight and hearing we collectively mourned and were very said when she died. But is it worth $29.95/month for a cat or $39.95/month for a dog? (the price for premium care) In a year you'll have forked over $479.40 - enough for almost for any kind of basic dog a family would like. This is obviously a luxury for those who don't look at price tags. We run into similar situations with both the credit card (which has a rate of 12.24%) and the identity theft protection, which costs $11.99/month (for a yearly total of about $144). Both products are readily available from other locations for better prices.

The lesson from this? Don't get sucked in to whatever offers show up in front of you - and just because something costs less than $20 a month doesn't mean that it's a good deal. It's important to do your research and take some time just before you sign up for something that will save you $10 on groceries or get you 20 cents off a fill-up of gas (both of these offers are made in the brochures.)