KEY POINTS
- Baby Boomers have the biggest savings as opposed to Gen Zers and Millennials
- Saving your payment information online may be a 'happy fingers' trap
- Checking your unused subscriptions may save you more than you expect
In an age where things have rapidly moved toward a digital-first economy, saving money has become a challenge, especially for younger generations faced with the challenge of saving up when online shopping or ordering food online has become the norm.
The latest data shows that Gen Zers and Millennials have lower savings amounts than older generations, with the Baby Boomers being the generation with the biggest savings at 17% with over $500,000 saved compared to 2% among Gen Z, and 4% among Millennials and Generation X, Forbes reported.
Saving money in the digital age is easier said than done due to inflation and the constant temptation of the "Add to Cart" button but starting small and daily practicing saving habits can go a long way.
To help you get the hang of it, below is a list of 12 easy savings hacks for the digital-first era.
1. Don't save your payment information online
This may sound like a hassle, especially if you're an on-the-go individual. However, one-click online purchasing makes it super easy to spend money! Auto-fill is the "happy fingers" trigger you don't want to be entangled in.
You might not even have thought hard about your next purchase but since your payment information auto-fills, you may lose the chance to second-guess whether you actually want the item or not.
You'll be surprised by the impact of a pause when your payment info isn't saved with an online retailer. It will allow you to reflect and will make you ask yourself: "Do I need this, or do I just want it?"
2. Check your subscriptions
In the Netflix, YouTube, Spotify, and social media era, it's so easy to subscribe to everything to get rid of the annoying ads. But, are your subscriptions worth it? Think again!
More often than not, you don't use all the apps or digital services you've paid on a weekly basis. Take note that many subscriptions renew automatically, which means you're actually paying for services you no longer use or have forgotten over the past months.
Check your subscriptions. Do you still use the services as often? If yes, set the subscription to expire after one year and disable auto-renewal. If not, unsubscribe and you may be saving a few dollars for your next thrift shop stop.
3. Go the distance on discounts
Whenever you have time off, do a quick online search on discount codes for various online activities such as shopping. They can save a significant amount if you keep track of the codes you've used in a year.
4. DYOR on Apps
This term that the new generation coined has become a cornerstone. Do your own research, whether it's for school, for work, or the apps you pay to use.
While this is an "informed" generation, the fast-paced life in the digital era may be preventing many Gen Zers and Millennials to actually take some time to research on the latest apps.
One app may have five services in a single platform. There's no app that completely has everything, but there are some stellar "super apps" that can help you accomplish a little bit of everything.
5. Get an e-library card
If you're one of the next-gen readers, you may be thrilled to know that many libraries now offer e-books for free! Yes, at no cost!
The next time you see an e-book for sale, check with your local library first to see if it's available for free download on your iPad or Kindle.
6. Avoid BNPL as much as you can
The Buy Now Pay Later system has ensnared many Millennials.
If you can pay for the items on your cart up front, just do so. You'll be shocked to discover just how much BNPL programs take from what could've been your savings stash.
7. Get into rewards programs
Whether it's a food delivery service or a ride-sharing app, or even your favorite online clothing retailer, make sure to be part of their loyalty programs.
Stack up rewards and discover what a game-changer they can be when on a serious journey toward becoming a top money-saver.
8. Budget with a purpose
Most Millennials, and especially Gen Zers, are on smartphones daily. Take some time off from social media scrolling and be purposeful with weekly or monthly budgeting.
Jot down expenses on your phone or laptop. You'll be surprised to know you've spent a lot on things you don't really need.
The goal isn't to feel bad about your earlier decisions but to plan how you can handle your finances better in the next week or month.
9. Automate savings
Online banking has made life easier, especially with investments and savings. Utilize the automation feature of your bank's online system for savings. Make sure to automate investments, especially if it's insurance.
You're not only protecting savings from being spent on unnecessary purchases, but you're also training yourself to not use it for other purposes.
10. Beware
The digital economy opened the floodgates for evolved exploiters and bad actors who take advantage of newbies in the digital world.
Beware of online scams and offerings. Some may come in the form of an online investment platform. Others may paint themselves as a "payment first" online class, while there are those that lure consumers into online gambling.
By being careful of your online interactions, you're saving yourself from spending money on things that, when you look closely at them, don't matter in your life.
Stay focused. Be purposeful. Be intentional. Spend within your means and save whatever you can.
