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 Timothy, 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 something online with one or two clicks. For instance, Timothy has a weakness for eBay, and sometimes ends up bidding more for an item than what he really thinks it is worth. He sometimes gets caught up on the moment of the auction and has on a few occasions ended up buying things he didn’t even need or want.

 

Example 2

“I worry about the increasing cost of using ICT devices and upgrading will become too expensive for me.”
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Overspending risks may manifest as a fear the increasing costs associated with using ICT devices and the need to upgrade devices regularly. For instance, Timothy is always excited about the new features in the latest iPhone version. Every time a new version comes out, he buys it. For now, he gets his devices heavily discounted from his part-time workplace, but he worries about the cost in the future once he fully retires from the tech-repair shop.

 
“I worry about the increasing cost of using ICT devices (software, subscriptions, internet connection) is becoming too expensive for me.”
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Example 3

Overspending risks may manifest as a fear the increasing costs associated with using ICT devices. For instance, Timothy has a range of ICT devices that seem to need an increasing number of costly subscriptions to run. He wants to be ‘always connected’ with the fastest internet and across all his devices; laptop, phone, tablet and smart watch. The cost to stay connected has almost doubled for him over the last few years and he worries about the rapidly increasing costs.

 

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