Posted by AdviserDirect on 02/07/2019

The good and bad of money apps?

The good and bad of money apps?

Finance apps are proving increasingly popular, but are they making us better at managing our money or encouraging us to spend more?

In the US, 92% of 18 to 37-year-olds use finance apps, says Dr Annamaria Lusardi at the George Washington University School of Business, mostly to track spending and pay bills.

But if payment apps just make spending money easier, with less emphasis on budget management, we can end up spending more than we did before we started using the app, she warns.

Kerry Hudson, 28, spent her childhood living in poverty in Scotland with her single mother, in "a succession of council estates, bed and breakfasts for the homeless, and caravan parks".

She lived in seven different places before she was 15, and attended 14 schools.

"I was always the new girl with the weird accent and the wrong, cheap clothes," she recalls. "I was bullied every single day of secondary school."

She found solace in books and the peace of the library, eventually growing up to become a prizewinning writer. Her most recent book, Lowborn, is about people growing up without money.

But although her childhood experiences gave her a constant, gnawing fear of slipping back into poverty, Kerry found managing her finances difficult.

She says she was "perpetually running out" of money before payday, "because I wasn't keeping track, which is obviously OK when there is a payday but you can't do that when you're freelance."

Read the full article on BBC

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