We can get into debt through borrowing small sums over time by credit card and the problem gets worse when you don’t physically see the cash leaving your wallet. But imagining our future selves, making your spending concrete and using pre-commitments can help, as this Slate article explains.
Notes on nudging
HSBC’s new spending app was inspired by a bank chief’s wife’s habit of leaving post-it notes that advised him not to eat more dessert, Business Insider says. The nudging app reminds people of day-to-day spending. The idea is that people are motivated by the present and ‘nannying’ notifications seem to help.
So far, debit and credit cards remain king among payment methods and contactless technology has only increased their popularity, notes PaymentEye. Uptake of wearable items like Apple Watch and mobile payments has been patchy but let’s not throw the baby out with the bath water, it says and cash is not disappearing anytime soon.