The Budgeting App Trap: When Spending Information Backfires

The FinTech industry is revolutionizing the way people manage their finances. Smart apps empower consumers to check their precise budget standing real-time: how much money was spent so far, and how much money is left? To curb spending and increase savings, financial advisors, consumer advocates and academics encourage consumers to keep a close eye on their expenses, implying that FinTech budget apps are a useful consumer tool. However, there is no empirical evidence proving that adopting budgeting apps is good for a consumer’s financial welfare. ….[READ]