Control and diligence can help restrain Internet overspending
April 16, 2009
College students are no strangers to tight budgets and empty wallets.
When it comes to shopping, being able to spend a good amount of money on what we want is something that does not happen often. As the Internet has grown in popularity, so has the trend of shopping online. Instead of dealing with traffic, long lines and the horrible possibility the store won’t have what you want, people take to their computers to shop easily and conveniently from their homes.
Not only does convenience factor in, there is also the matter of cheaper bargains. Because most college students don’t have fat wallets, searching online stores such as eBay allows students to purchase exactly what they want but for an affordable price. Even though most items on eBay can be bought for $5 or less, students must be wary of the purchases they make because those seemingly tiny bills for each purchase can start to add up.
Because of the convenience factor, it is easy for people to shop to their hearts’ content without realizing the total bill they may be racking up, said finance professor Gerald Jensen.
When shopping in a store, it is easy to keep track of the amount spent on different purchases if cash or a debit card is used. With that set value in mind, shoppers can easily make their selection according to the amount they allotted. Online purchases, however, begin to stack up.
On eBay, bidding in an auction means you are committing to a business transaction. When you add in shipping costs, it is easy for people to lose track of how much they are spending, and they may go over what they can afford.
“I find that it’s definitely easier to spend money online, and that also means that overspending is more possible. You generally use a credit or debit card, so it’s easier to spend,” said Dylan Newell, freshman marketing major and recovered ‘eBay addict.’
Electronic transactions are much easier to lose track of.
“Writing down your purchases in order to keep track of how much you actually spend is an important factor to avoid overspending,” Jensen said.
Newell said he usually sticks with PayPal when it comes to shopping online. “It helps because it lets me know how much I have to spend, plus most Web sites accept PayPal as payment,” he said.
Freshman mathematics major Kevin Riesbeck said he avoids online shopping altogether.
“I know I could blow a lot of money. If there is something I really want, then I just have my dad order it for me,” Riesbeck said.
Another way to avoid overspending is to simply budget your money, Jensen said. If the money you have is set aside for different things, it gives you an idea of what your spending limit can be when shopping.
Impulse shopping is inevitable, however, when you are in college, it can be costly. When shopping online, be sure to keep track of your expenses. As an ‘eBay addict’ myself, I know it is easy to see your money slip away too quickly. Seeing a $200 plus charge to your bank account is never a pleasant surprise. So, budget wisely, record transactions diligently and happy eBaying.