Food stamp participants can stretch their savings when they learn to coupon. Anyone can coupon, and the principle is virtually the same for all consumers.
However, when it comes to couponing with food stamps a few rules apply that differ from cash consumers. Do these variances affect the amount of savings? No. Let’s take a look at what the consumer who uses food stamps can expect upon checkout at the grocery store.
There are basically two different types of coupons a consumer will use, manufacturer and store. Both function the same in the way the retailer and manufacturer benefit from them. When using manufacturer coupons, the manufacturer reimburses the store for the face value of the coupon plus 8 cents and shipping and handling for mailing in the coupons.
A store coupon, on the other hand, results in a store markdown by the store, which does not get reimbursed for the consumer’s usage of the coupon.
Although both provide the discount, the way they are handled varies in regard to the consumer who uses food stamps to pay for their purchase. Manufacturer coupons are taxed on the value of the coupon, whereas store coupons are not.
Why, you may be wondering? The answer is simply this-stores get reimbursed for manufacturer, but do not for store coupons. Here’s a simple example of what you can expect when paying for your purchase using coupons and food stamps together:
• The purchase total is $10 with $3 in “manufacturer” coupons used toward the purchase. The consumer will have to pay about 30 cents in cash, and then the remainder balance of $7 can be paid with food stamps.
Here is another example where the consumer uses only store coupons with their food stamp purchase:
• The purchase total is $10 with $3 in “store” coupons are used toward the purchase. The consumer will pay no out-of-pocket expense for the coupon use, and the remainder balance of $7 will be paid with food stamps.
It can often be a surprise for consumers when asked to pay an out of pocket amount. But, as long as you know what to expect when you reach the checkout, it is smooth sailing.
So the question I often get asked is “If I have to pay this amount is it really worth it?” Absolutely.
Any savings accumulated just stretches the food stamp dollars further and makes for wise shopping. Obviously the goal is to learn smart shopping strategies now even in less than perfect circumstances to prepare for future abundance.
As with anything, when you are faithful with little you will obtain much.
On Saturday from 9 a.m. until 3 p.m., I will be at the Financial Workshop for Veterans. Visit annhaney.com for details.
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Ann Haney is homeschool mother of 18-plus years to six children, including four entrepreneurs, CEO of Aaron Publishing, founder of Ann Haney Ministries and Living In Abundance, nationwide motivational speaker, coupon specialist, empowerment coach and best-selling author of 18 published products, including her books, “Exploding Into Successful Entrepreneurship” and “Single Steps In A Married World.” Contact Ann at email@example.com to schedule a speaking engagement, individual coaching or view her website for more information at annhaney.com.