Investing Education

While coupons used to conjure up images of homebody housewives or hobby-less elderly women, popular television shows like TLC’s Extreme Couponing, in combination with continued tough economic times, have made couponing less taboo for the young, the single and the non-soccer-moms among us.

But you don’t need hours of preparation, intricate spreadsheets or a support team like the stars of these shows to rack up impressive savings. Understanding how coupons work is the key to saving success.

There are two main types of coupons, each with different purposes and uses.

Manufacturer coupons are distributed by the manufacturers of specific products in an attempt to boost sales of those products. These coupons generally carry the brand name of the products, or the company that produces it, but will not list a store name. Manufacturer coupons can typically be used at any location where that product is sold, regardless of location or chain. The store later sends your redeemed coupons to the manufacturer to be reimbursed for the savings they passed on to you.

Manufacturer coupons can most often be found in newspaper inserts or on the products themselves; stuck to the exterior of the item, contained within the packaging, or printed on the interior of the packaging. These are also the coupons you often see in both static and electronic dispensers along store shelving.

Rebates are a slightly different family of coupons offered by manufacturers. Mail-in Rebates offer savings after the fact rather than at the time of purchase. After your purchase, you send a receipt, a form or a proof of purchase to the company to be reimbursed for the value of the coupon. Rebates have expiration dates, just like other coupons, so just be sure to read the fine print to make sure you get your savings.

Store coupons often look similar to manufacturer coupons, but they can only be used at the indicated location. These coupons may or may not have a specific brand name or product listed, but they will carry a store logo indicating where they can be redeemed. Stores offer these venue-specific coupons in an attempt to get you through their doors instead of someone else’s.

Store coupons are most often found in newspaper inserts or mailings to the local area. Occasionally, these coupons are also found in-store, either in the form of flyers or booklets distributed at entry or in the dispensers on the shelves. Joining a store’s rewards program can also earn you members-only store coupons sent to your home or email.

Catalina coupons are the coupons that print at the register after a purchase, and these rewards can be a combination of store and manufacturer coupons. These coupons are awarded and printed based on your spending habits, and are usually triggered when you spend a certain amount on a product type or purchase a pre-determined number of that product. Depending on the current catalina promotions, you can receive printed coupons that offer you money off your next product, money off your next purchase, or a free product as a reward for reaching the spending threshold.

If you’re shopping online rather than in store, be sure to check out our previous article, “Smart Online Shopping, Part 1: Saving,” to see the benefits and uses on online coupons and promo codes.

And be sure to check out parts two and three in the Coupon Basics series to understand coupon values and maximize your coupon savings.