Money management is a source of struggle for most Americans. Only 37% of Americans are happy with their financial situation, while one in three consider money management a burden, a recent study from Fiserv reveals. As a result, many of us are looking to technology for new ways to make money management easier and less overwhelming. Advancements in technology are already transforming how we deal with our finances — banking via our smartphones rather than in-branch, for example. But, let’s take a further look at the innovations set to transform how we deal with money in the future.
Technology — a new way to pay
Apps are a popular method of money management. The most basic ones track your monthly income and expenses to determine a livable budget that works for your lifestyle. The more complex apps can track and categorize purchases to show you exactly how much you’re spending in certain areas each month. And now, 25% of Americans envision apps overtaking debit and credit cards to become the go-to method of in-store payment in the next five years, Koski research reveals. 84% of those surveyed would be happy to manage their money via an app, while two-thirds would store all their money in one app to use for deposits and payments.
Future innovations in money management
Financial firms are busy creating robo-advisors which employ algorithms to create financial plans for customers. These robo-advisors typically run on a mix of both automated and human input. In one recent survey, 45% of Americans say robo-advisors have the potential to make the biggest changes to how customers manage money in everyday life — more so than any other technology. However, 70% of those who welcome robo-advice still want the option to talk to a human when the need arises. Survey respondents also named cryptocurrency, artificial intelligence, virtual reality, and big data among the other technological advancements set to transform money management in the future.
Millennials vs. baby boomers
It won’t be surprising to learn it’s the younger generations — those in their twenties and thirties — who are most comfortable managing their money with technology. However, a personal touch is mostly still welcome: 82% of millennials say the opportunity to talk to a real-life person is also a must. Technology isn’t always reliable. Comparatively, 43% of baby boomers turn to technology over direct customer service for money management advice. Technology is becoming easier to use and is therefore increasingly appealing and accessible to the less tech-savvy older generations.
Technology is developing at a rapid rate, but there’s no invention yet that can completely take over money management for us. Until then, it’s important to take a proactive approach to your finances. Money management tools are increasingly user-friendly and you’ll find plenty of solid financial advice online (start off by looking at governmental websites ending with “.gov” for reliable, trustworthy financial advice). Ultimately, it’s important you take the steps to take charge of your finances and achieve your financial goals — whether that’s with the help of technology or not.
Cassidy Oliver is a freelance writer and editor with a passion for animals. With several pets of her own, she spends all her time enjoying her animals when not at work.