Some apps help you save, while others nudge you to spend more. Knowing which apps prompt impulse purchases — and how to manage them — can help you rein in your spending.
While some apps help you save money, others have a way of encouraging you to spend more.
Changing how you connect with these types of apps by deleting them, not downloading them in the first place or limiting your interaction with them can help you rein in your spending.
1 Subscription-Based Apps
Many subscription services and boxes have corresponding apps. And you may feel inclined to sign up for a subscription if you can easily manage your membership from an app.
But automatic subscriptions are dangerous because consumers tend to continue using (and paying for) them, as opposed to canceling when they’re done, says Susan Weinschenk, a behavioral scientist and CEO of The Team W, a consulting company.
“If it requires action to make it stop, then we’re less likely to actually take that action and make it stop. We all fall prey to inertia.”
To save, stay away from subscriptions and their corresponding apps in the first place. Or, use apps to fight apps. For example, Weinschenk suggests setting up alerts to remind you when a free trial is expiring — before you’re charged. You can also set up twice yearly alerts as a reminder to review all of your ongoing subscriptions, streaming services and so forth.
2 Shopping Apps
Deals make people feel good.
When consumer psychologist Kit Yarrow interviewed shoppers about how they feel when getting a good bargain, they’ve likened it to coming in first in a race or getting a raise at their job.
“There’s just a winning feeling,” says Yarrow, who is also the author of “Decoding the New Consumer Mind: How and Why We Shop and Buy.”
Deal-centric apps, such as those for certain stores, bring those feel-good bargains straight to you via your smartphone. But tempting sale notifications can encourage more shopping, which may mean it’s better to delete those retail apps altogether.
Or at least turn off the app’s alerts, advises Weinschenk. That way, you aren’t constantly flooded with push notifications about sales.
Another strategy? Weinschenk said she’s downloaded a store’s app, redeemed a coupon offer and then uninstalled the app just as easily as she installed it.
But if you’re disciplined, you can keep the apps, says Casey Taylor, a partner in Bain & Company’s retail practice. Take advantage of the savings within shopping apps, but also monitor how much you’re spending in them. For example, check your credit card statements regularly to stay within your discretionary spending budget.
3 Social Media Apps
The products you see in your social media feed — whether from retailers or friends — could encourage you to purchase things you wouldn’t otherwise buy.
But deleting social media isn’t an option for many. “Most people really want to have social media in their lives, so I can’t see getting rid of those apps,” Yarrow says.
Instead, she says to be aware that Instagram and Facebook will present you with buying opportunities. Be conscious that marketing is constantly targeted at you, and “you’re being hunted, stalked, chased down,” Yarrow says. “When you go shopping online, if you stop and hover too long over a product, that product’s going to show up on your social media feed, and you have to be ready to say no.”
Even when you’re not paying money for these apps, Yarrow says you’re paying with your attention.
4 Rewards Apps
Rewards program apps, whether for a grocery store, airline or coffee shop, typically function in much the same way. The more customers spend, the more rewards they unlock.
Taylor says it can almost feel like a game.
For example, in the Starbucks app, “You earn stars that you can then burn for rewards,” she says. If you’re a very disciplined customer, you could save money by claiming a free coffee or snack using stars you accumulated from items you were already buying, Taylor says.
But, she adds, what you see is it becomes psychologically tempting to buy things just to earn those stars.
So be careful not to let climbing the tiers of a reward system lead you to spend more in the process.
With any app, Yarrow says one way to curb excess purchases is to simply be aware of the potential dangers. Pause and recognize your tendency to overspend before it happens.
This article was written by NerdWallet and was originally published by The Associated Press.
Courtney Jespersen is a writer at NerdWallet. Email: courtney@nerdwallet.com. Twitter: @CourtneyNerd.
The article These Types of Apps Could Prompt Impromptu Spending originally appeared on NerdWallet.
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Frequently Asked Questions
Which types of apps tend to prompt impulse spending?
Subscription-based apps, shopping apps, social media apps and rewards apps can all encourage you to spend more. Subscription apps make it easy to sign up and keep paying, shopping apps push tempting sale notifications, social media feeds present buying opportunities, and rewards apps make spending feel like a game where the more you spend, the more you unlock.
Why are automatic subscriptions dangerous?
According to behavioral scientist Susan Weinschenk, automatic subscriptions are dangerous because consumers tend to keep using and paying for them rather than canceling when they're done. As she puts it, if it requires action to make it stop, we're less likely to actually take that action. People fall prey to inertia, so the charges quietly continue.
How can I stop shopping apps from leading me to overspend?
You can delete retail apps altogether, or at least turn off their alerts so you aren't flooded with push notifications about sales. Another strategy is downloading a store's app, redeeming a coupon, then uninstalling it. If you're disciplined, you can keep the apps but monitor your spending by checking your credit card statements regularly.
How do social media apps influence spending?
Products you see in your social media feed, whether from retailers or friends, can encourage you to buy things you wouldn't otherwise. Consumer psychologist Kit Yarrow says marketing is constantly targeted at you on Instagram and Facebook. If you hover too long over a product online, it shows up in your feed. Even free apps cost you your attention.
Are rewards apps worth using if I want to save money?
Rewards apps can save money if you're very disciplined. In the Starbucks app, for example, you earn stars to burn for rewards, so you could claim a free coffee from items you were already buying. But it becomes psychologically tempting to buy things just to earn stars, so be careful not to let climbing reward tiers lead you to spend more.
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Some apps help you save, while others nudge you to spend more.
While some apps help you save money, others have a way of encouraging you to spend more.
Changing how you connect with these types of apps by deleting them, not downloading them in the first place or limiting your interaction with them can help you rein in your spending .
Many subscription services and boxes have corresponding apps.
But automatic subscriptions are dangerous because consumers tend to continue using (and paying for) them.
To save, stay away from subscriptions and their corresponding apps in the first place.
Deals make people feel good.
When consumer psychologist Kit Yarrow interviewed shoppers about how they feel when getting a good bargain, they’ve likened it to coming in first in a race or getting a raise at their job.
“There’s just a winning feeling,” says Yarrow, who is also the author of “Decoding the New Consumer Mind: How and Why We Shop and Buy.”.
Deal-centric apps, such as those for certain stores, bring those feel-good bargains straight to you via your smartphone.
Or at least turn off the app’s alerts, advises Weinschenk.
Another strategy?.
But if you’re disciplined, you can keep the apps, says Casey Taylor, a partner in Bain & Company’s retail practice.
