Technology Makes It Harder To Save Money

Hugh Pickens writes "LiveScience reports that a survey conducted for the American Institute of CPAs reveals that while more than half of U.S. adults believe technology has made it easier to spend money, just three percent think it has made it easier to save. The research found that Americans who subscribe to digital services spend an average of $166 each month for cable TV, home Internet access, mobile phone service and digital subscriptions, such as satellite radio and streaming video — the equivalent of 17 percent of their monthly rent or mortgage payment. Those who download songs, apps and other products spend an additional $38 per month. 'Our gadgets and connections can bring benefits like mobility and efficiency,' says Jordan Amin. 'But they can also bring financial challenges, like taking money that could go to savings, for instance, or contributing to credit card debt.' If facing a financial crunch, Americans would rather change what they eat than give up their cell phones, downloads or digital TV services. Asked to choose the one action they would most likely take in tight time, 41 percent said they would cut back on eating out, 20 percent said they would cut off cable TV, 8 percent said they would end cell phone service and 8 percent said they would stop downloading songs and digital products."

Comments

you can save a ton of $

[Presto Vivace]

by giving up TV. With internet access and a mobile phone, you really don't need TV.

Re:you can save a ton of $

[__aaeihw9960]

No, technology isn't an impediment to saving, lack of discipline is the impediment to saving.

Ex-fucking-actly. There could be hookers and coke for sale on every street corner I pass, but my own decisions will dictate whether I buy them or not.

It's just like when people talk about certain colleges as party schools. YES, there is drinking in college. YES, most colleges do have bars near them. NO, no one is going to pour it down your throat. Make good choices, and that 'party school' just becomes 'school'. Make good choices, and 'technology makes it harder to save' becomes 'hey, look, my savings account isn't empty because I'm not an idiot.'

Re:you can save a ton of $

[EzInKy]

So $24,000 a decade not counting the interest/dividends it could have been earning? Doesn't sound like chump change to me.

Re:you can save a ton of $

[WastedMeat]

Actually, it sounds a lot like the cost of a college education after about 18 years. I guess people have their priorities though.

Bundles and termination fees

[Anonymous Coward]

"41 percent said they would cut back on eating out, 20 percent said they would cut off cable TV, 8 percent said they would end cell phone service and 8 percent said they would stop downloading songs and digital products."
If I cut my TV service my phone bill goes up, if I cut my phone my TV bill goes up. If I cut either I have to pay a fee to terminate the contract. Of course I'm going to cut back on eating out.

...not quite it...

[raydobbs]

People are willing to change what they eat because their cell phones plans have steep early termination fees if you drop your level of service - same with your digital television or broadband connection. Temporarily changing your dietary desires is much more simple - not a sign of technology addiction, more a sign of service charge and penalty avoidance.

Re:...not quite it...

[wmbetts]

If you have kids you either spend $25 to $50 for a babysitter, gas at over $4 a gallon, and the price of the meal. If you don't use a babysitter you then pay the same or more for the food your kids will eat. I can't goto a movie for under $70 any more. I'm not complaining about it, because it's just a fact of life. I wanted to have a wife and kids and I knew that it would be costly. I'd rather spend the money on cable tv and internet as our primary forms of entertainment. Sure, it sounds expensive when you hear $200 a month for the cable and internet bill, but in reality it's the cheaper form of entertainment for a family. I also have 2 WoW accounts (currently the only game we play) for my wife and myself. Raiding together or pvping in a bg or arena to us is a lot more fun than going out all the time. It's also a lot cheaper and gives us something we can always do together as a couple.

Change what you eat?

[Hatta]

Good. Humans don't need meat every day anyway.

Re:Change what you eat?

[Gordonjcp]

And all water is risky, and all vegetables are risky, and all air is risky...

You can find a study that will make any point you want. There are undeniable ecological benefits in only eating things produced near where you live. For much of the world, that includes "unhealthy" carbohydratey potatoes, and "unhealthy" proteiny red meat. It's a bit of a bummer, but it still makes more sense than shipping soya beans half-way round the world only to throw most of them out processing them into something humans can just about digest.

No big secrets here

[husker_man]

Big thing is to first know where you are spending money, and then categorize your expenses into what is a can't-do without, must have, nice to have, and frivolous buckets. You need to put about 10% of your income into a long-term retirement fund, and have (ideally) six months of living expenses in a money-market or savings account (Must have). You need to put a certain amount of money aside each month for certain necessities (housing, required food, loan payments) (can't do without (unless you're living in your parent's basement)). Most of the rest of it tends to be the nice-to-have (like cell phones, phone lines, new clothes, eating out).

I would agree that cable internet is indispensable to me for work purposes, and would be one of the last things that I would cut back on in the event of a major problem (like losing a job).

I pay about $225 for phone service, cell phone service, and satellite service, with another $50 for cable internet (total of $275). I've looked at getting rid of the home line and going strictly cell phone, but my spousal overlord unit isn't ready to do that yet, and with three teenagers in the house, I expect my telephone costs to be going up here until they move out of the house.

People spend money

[mehrotra.akash]

People spend money
Not technology

Re:america

[Ferzerp]

I think the point is that everyone recognizes that there are cheaper alternatives to eating out all the time. You can eat out for $20/meal (not talking fast food), and it's really, really convenient. Do that 3 times a week (or more), and you're spending at least $240/month eating out.

We recognize that the benefit from that $240 (12 meals that we could make for maybe $40 ourselves, but it would be less convenient) is much, much less than the entertainment value of cable, or internet.

I can always make my own meals by buying ingredients and save a huge amount of money (I eat out a lot), but I can't make my own cable service or cell phone service.

It isn't trading food when the subject is eating out. It's trading convenience. You still eat... you just have to prepare it yourself.

Misleading summary

[wealthychef]

Statistics, damn lies... 41 percent sounds like a lot more than 8 percent, making it sound like people will choose music downloads over food, but the truth is most people don't download music.

Consumerism is where the market

[Burz]

constantly tries to invent ways for people to spend more, and rapid technical innovation is at the core of that process. You have to outstrip not only the ability of people to simplify their lives, but outdo the very desire to do so.