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 Rosa, these perceptions of risk manifest in the following ways:

 
 

Example 1

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“I worry about spending too much when I’m shopping online.”

For some seniors, it is harder to compare things online, and they end up spending more on one item than expected. For instance, Rosa bought shoes online, but they didn’t fit her. She had to pay the postage to return the shoes, but her size was out of stock by this time. 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 Rosa won’t buy anything online as she’s too fearful that she’ll be out of pocket and is spending too much online.

 
“Overspending is easier online than in a regular store.”
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Example 2

The overspending risk was expressed by many older people talking about how easy and quick it is to purchase something online with one or two clicks. For instance, Rosa increased her online shipping during the covid pandemic. She got used to buying everything online and continues this habit despite being able to go to the stores again. She often clicks on additional items because they are on discount, or she needs to get to a certain amount to receive free shipping.

 

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