Perceived Overspending Risk

This risk is about the ease of shopping online and how easy it is to overspend beyond one’s budget. Many older people interviewed were retired and had financial limitations and were very conscious of their spending habits. This risk perception includes concerns around the need that ICT products and software need regular updates and upgrades. In addition, the growing cost of staying connected, either through a less optimum connection services or a reluctance to upgrade devices causes concern.

For Dawn, these perceptions of risk manifest in the following ways:

 
 
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“Overspending is easier online than in a regular store.”

Example 1

The overspending risk was expressed by many older people talking about how easy and quick it is to purchase someone online with one or two clicks. For instance, Dawn is concerned with how easy it is to buy things online and then forgets she has bought it until two items of the same thing arrived on the same day. It was so hard for her to return the item that she ended up giving the second item to her sister. She is worried she may get into financial strife if she doesn’t curb in her online shopping.

 

Example 2

“I worry about spending too much when I’m shopping online.”
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For some seniors, it is harder to compare things online and they end up spending more on one item than expected. For instance, Dawn bought shoes online, but they didn’t fit her. She had to pay the postage to return the shoes but by this time, her size was out of stock. The company wouldn’t refund the money and gave her store credit. She is worried about buying another pair of shoes and that she’ll forget she has this store credit. Now Dawn won’t buy anything online as she’s too fearful that she’ll be out of pocket and is spending too much online.

 

Can you relate to those example above?  Go to strategies to learn about how Dawn can address these issues.