Apps ‘are making finances worse’

Nearly a third of Britons say apps are making their finances worse either by encouraging them to spend more or meaning they lose track of their outgoings, a survey has found.

Many are being encouraged to indulge in “out-of-hours spending” by the convenience of apps which enable them to make purchases at the click of a button, according to the research from the Financial Services Compensation Scheme (FSCS). One in seven (15 per cent) admit to spending using apps while at work.

Nearly two-thirds (61 per cent) of people surveyed say apps make it easier to part with their cash, while 31 per cent believe apps have a negative impact on their finances, either meaning they spend more or lose track of their outgoings.

Women spend £131 via apps during a month typically, while men fork out around £115, the research suggests.

Men are more likely to shell out via apps on gambling, travel, socialising, entertainment and music, while women are more likely to use apps for food and general shopping.

Many apps available will help people to manage their budgets more easily and identify areas where they may be overspending.