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 $

[Anne_Nonymous]

Two bits = a quarter
There are four quarters in a dollar
2*4*15=120

120 bits of bandwidth

Re:you can save a ton of $

[Anonymous Coward]

Where I'm from, giving up the basic cable package ($60 a month) is not a "ton" of $.

Sure it is. Just figure it all in pennies. $60 a month = 6,000 pennies. 1 US penny is 2.5 grams. 6,000 pennies is 150,000 grams. That is approximately 330 lbs. In approximately 6 months you save 1 US ton (short ton) of money. How is that not a ton?

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 always true

[boristdog]

Because of the Internet, I stopped paying for porn years ago.

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.

Saving money is like Losing weight

[Overzeetop]

It matters less what you are doing with the flow of your metric, and more on your net balance.

Whether I spend $300/mo on digital services or buy a bigger house than I need, or a nicer car than is necessary for my requirements, it's the same dollar at the end of the day. Americans are gaining weight because of easy access to high-calorie food that is made to be appealing through advertising and instant sensory gratification. Americans are not saving because our entire economy is based on spending as much as possible on things which are made to be appealing through advertising and instant sensory gratification.