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:
“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.”
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.”
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.
Individual Strategies for Managing Overspending Risk
01
ICT equipment. It is important to keep products up to date, but you may not need the latest model. You can often get products made 1-2 years ago at a heavily discounted rate. Consider buying ‘factory refurbished’ products or second hand.
02
Budget. Develop a budget for online expenses. Try to stick to it as it will help you avoid unpleasant surprises. Consider using an offline shopping list before going online and stick to it.
03
Hidden expenses. When calculating costs of devices and software, make sure you include peripherals that you might need. Ask questions that might help you understand your spending needs. Do you need to upgrade your software? Will you need to improve your internet connection speed? These extra costs may play a role in your overall budget.
04
Do your research. Compare products and research options to ensure you are getting the best value for your needs. Make sure you ask questions to help you understand your product needs. Do you really need to upgrade your software? Do you need to improve your internet connection speed? These extra costs may play a role in your overall budget.
05
Apps. Remove spending apps from your phone or tablet to reduce temptation. Also be wary of apps that have a free subscription for a limited period as you are likely to forget to de-register from it. Some apps charge large annual or monthly fees which you pay as soon as your trial period is over. If you are disciplined with setting dates, then use a calendar reminder to let you know the time is up.
06
Advert blockers. Set up website advert blockers so you are not inundated with adverts and different products.
07
Product maintenance. You can extend the life of your device by replacing batteries and deleting apps no longer being used to increase data storage.
08
Mindset. If you're exhausted, bored, depressed, anxious, or struggling with mental health, avoid browsing your favourite online stores or scrolling through retail lists. As a rule of thumb, avoid spending when in a stressful day or in a bad mood. Negative emotions can reduce cognitive ability and increase impulsiveness, making it hard to control spending.
09
Take your time. Give yourself time or at least a day to "cool" off and think through a purchase to determine whether you really need it.
10
Overspending temptation. If you are an over spender, do not trust yourself to stop the behaviour. Delete apps that might be tempting, or contain an easy to purchase, one-click shopping buttons.
11
Mindset. As a rule of thumb, avoid spending when in a stressful day or in a bad mood. Negative emotions can reduce cognitive ability and increase impulsiveness, making it hard to control spending.
Relational Strategies for Managing Overspending Risk
01
Seek assistance. Share your concerns about spending with family and friends. They might help you come up with managing strategies that work for you.
02
Discuss your challenges. Share your online shopping experiences and spending concerns with your family and friends. They might help you come up with managing strategies that work for you. You can also learn from their experiences with overspending.
03
Budget buddy. Follow a budget and create social barriers to make it harder to shop. For example, find a friend who accepts to be called every time you start engaging on a bigger purchase. They may help keep you accountable for what your purchase.
Strategies to Managing Perceived Overspending Risk
Overspending risks are aligned both with the person’s ICT ability and the person’s confidence to overcome the perceived risk and try to engage with the digital device. There are individual strategies people can do themselves to manage this risk, as well as relational strategies which consider the role of social influence on a person’s ability to try new things and interact with ICT.
