Carefree spenders say technology is making them splash out without thinking twice

Carefree spenders can quickly spend money without even realising it with tap and go technology, but there are easy ways you can put a stop to this.

Carefree spenders admit technology is making it easier than ever to spend money they simply do not have.

The surge in seamless payment methods including tapping at the checkout with a phone, watch or even a ring has resulted in Australians conceding they are spending money despite not having sufficient funds.

This often results in cash-strapped consumers paying by credit.

New analysis released today by Bankwest, surveyed 1000 Australians and found the following:

• 90 per cent say technology makes it easy to spend without thinking twice.

• 86 per cent say technology makes it easy to spend money they do not have.

• The most popular ways people manage their finances is via a banking app (66 per cent), online banking (60 per cent), pen and paper (24 per cent), notes on a phone (15 per cent) and a spend-tracker app (12 per cent).

Some people use multiple methods.

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Tap and go is convenient but many admit it is resulting in us spending money without thinking about it.

But financial adviser Scott Haywood said the decline in cash usage can be detrimental to being a good money manager because waving a card was easy to do without thinking about it.

He urged shoppers to stick to paying using debit.

“History tells us we will always spend less when we have cash in our hand and pay for items,” he said.

“People have always struggled to budget whether it be on a napkin, with an accountant or financial adviser but now it’s spend without thinking.”

But on the flip side the digitalisation of spending through online banking including mobile apps has made it easier than ever to monitor your own spending closely.

Bankwest’s executive general manager of customer solutions and insights Pieter Vorster said banking alerts and limits that can be controlled online or via apps helps customers stay in control of their finances.

This includes using being able to make quick credit limit decreases and even shutting down credit card accounts online, a move which the banks were forced to introduce from January 1 this year.

“If you want to manage your credit limit for example, go into the app and reduce it down without filling out any forms,” Mr Vorster said.

“Goal setting is another example, you are reminded of the things you want to achieve, the banking app can tell you if you are doing a good job and if you can do certain things better.”

He said it is useful for customers to be able to drill down into fine detail on their spending behaviours into how much they are shelling out on discretionary spending such as fast food and entertainment.

Financial services’ software lab Rare Birds’ co-founder Cameron Upshall said it has become more widespread to spend without even tapping a card or opening your wallet.

“It’s even easier than when you have a credit card, consumers can use things like Uber and you don’t even know you are doing a transaction, it’s that easy,” he said.

“Budgeting is almost a dirty word, it has a bad connotation, people have tried it and failed at it.

“Where we’ve found some success if given consumers insights of where and how they are spending their money.”

@sophieelsworth