There's something about seamlessly buying and downloading content like music, movies, and books that makes you forget you're actually spending (real) money on it. I used to be a major offender of, um, filesharing music, and now I can't stop buying random songs from iTunes. It all seems pretty harmless - a song here, a song there - until I get my bill and I realize just how much I racked up.
For some reason, until I get the bill, I forget I'm actually spending money on the content, and probably don't need all these songs I won't listen to after a week. Part of me thinks "meh, it's less than 1 or 2 dollars," while another part of me thinks "isn't that how people ruin their budgets? By minor purchases here and there?"
I'm not the only one concerned about this. According to AICPA, "more than 40% of Americans download and pay for digital content, and they’re spending more money on them than they ever have."
But do they have this money to spend? Jordin Amin, chair of the AICPA’s national CPA financial literacy, says it best when he says, “one of the concerns we have is that it’s very easy to make these purchases without a budget or an overall financial plan.”
It's true. Do people not 'count' content they download as a real purchase because it's not in tangible DVD, book, or CD form? One could argue that it's cheaper to buy a song vs. an album, or a digital version of a book than a physical paperback, but do we justify more purchases when they are only a tap or swpire away?
What do you think?
