Wednesday, March 18, 2015

Are Speedy Online Payments Savvy or Suspicious?

Savvy Student has been watching online payments grow exponentially, as apps and websites are promising easier, safer, better, and faster payments. With just one click or tap, sums of money can flow from one friend to another. But especially in the case of our millenials, who are the most susceptible to new and innovative trends - is this technology a danger to our wallets? How will this affect our spending choices? 

Vindu Goul, in a New York Times article, states, "In the United States, a host of peer-to-peer money transfer services have emerged and are trying to capture the wallets of messaging enthusiasts." The more you message, the more likely you are to send and receive money between friends. Can $10 or $20 here and there add up before you realize? 

This new era of fast mobile payments eerily parallels the emergence of credit in the 1940s and the irreversible debt which many Americans faced as they discovered the tantalizing nature of "pay now, think later". Do the risks associated with fast payments outweight the costs? 

Savvy Student recommends that millenials exercise caution. Spend one week paying in cash alone, and spend one week paying entirely by credit or online. Which lends itself to savings? Perhaps the feeling of crisp green bills in your hand will motivate savvy spending. 

Although the novel payment methods are surely enticing, keep your spending in check!