How Technology Is Changing the Way We Manage Money

Susan Kelly

Jul 30, 2023

We live in an age where technology has transformed how we communicate, shop, and make payments. What was once a laborious process of carrying around cash or writing checks is now highly streamlined by digital money management tools.

With the rise of mobile banking apps, online transfers, cards, and other payment methods—it's no surprise that technology is transforming how people interact with their finances. In this blog post, we'll explore how advanced technologies are changing how we manage, budget for our expenses, handle investments, and more!

Five Main Areas of Managing Money

  • Income: Your income can come from various sources, such as your job or side hustles. Understanding what makes up your total income is important so you can budget accordingly. Digital banking services allow you to keep track of your paychecks and other income sources more closely than ever before.
  • Spending: Consider your day-to-day expenses and longer-term obligations, such as loans or mortgages. Online banking tools help you monitor your spending in real time, identify trends, and stay on top of bills.
  • Saving: Once you understand your income and spending habits, it's easier to determine how much you can save for the future. This is an important step towards financial security as it ensures that unexpected costs don't derail your entire budget plan.
  • Investing: Investing is a great way to build wealth over time but it requires careful planning and analysis. With the right digital resources, you can research different investments and monitor their performance more easily.
  • Protection: Protecting yourself and your family against unexpected costs is important. Investing in comprehensive insurance coverage is a smart way to guarantee financial security in times of need.

How Has Tech Affected Our Incomes

Technology has had a massive impact on our incomes. In the past, wages were based largely on location and what people were willing to pay for certain jobs—but thanks to technology, this is no longer the case. Today, salaries reflect more on an individual's skill set and experience—not where they live or who they know.

Thanks to the Internet's global reach, talented professionals can now compete with applicants worldwide, opening up new opportunities for those willing to work hard and develop their skills.

Additionally, technology has made it easier for people to make money outside of traditional 9-to-5 jobs. Whether it's through freelance work or online businesses, many individuals are taking advantage of platforms like Upwork, Etsy, and Shopify to generate additional income.

With these sorts of opportunities, people can diversify their incomes and have more control over how much money they make—which allows them to increase their financial security even during difficult economic times.

Finally, technology has made the payment process easier for employers and employees. Employers now have access to a range of fintech options that make payroll management quick and simple.

Meanwhile, employees receive their salaries directly into their bank accounts, making it easy to monitor spending and budget accordingly.

How Has Tech Affected Our Spending

Technology has had a profound effect on spending. With the advent of online banking, digital payment methods, and mobile apps, accessing our money and making purchases quickly and conveniently has always been challenging.

The rise of digital payments through services like PayPal, Venmo, Apple Pay, Google Pay, and other apps allows us to transfer funds instantly from one bank account to another without worrying about exchanging cash or checks.

This convenience has made it easier for people to spend their money - whether for necessary expenses or impulse purchases - in no time.

In addition, technology has also enabled the development of a wide range of budgeting tools that can help people better manage their finances by tracking income and expenses in real time. Apps like Mint and YNAB offer budgeting tools to help users stay on top of their financial goals and provide personalized insights into their spending habits.

Finally, technology has made access to credit more accessible for people who may not have access to traditional financing forms. Services such as Klarna and Affirm offer buy-now-pay-later solutions that make it easier for shoppers to purchase big-ticket items without paying the entire cost upfront.

How Has Tech Affected Our Savings

Technology has revolutionized how we save money. From online banking to budgeting apps, digital tools have made it easier for individuals to manage their finances and achieve their goals.

Online banking makes saving money much easier and more convenient than before.

Banks now offer mobile applications that allow customers to check balances, transfer funds, view recent transactions, and set up direct deposits from anywhere in the world.

Additionally, some banks offer digital savings accounts that can be opened with as little as a few dollars and give users higher interest rates than traditional ones. These digital accounts also help customers maintain better control over their spending by providing easy-to-understand breakdowns of income sources and expenses.

Budgeting apps are also becoming increasingly popular, giving users insights into their spending habits and allowing them to make informed financial decisions. These apps analyze user data and generate graphs and charts showing how money is spent, helping customers understand where they should be cutting back or saving more.

How Has Tech Affected Our Investing

Technology has profoundly impacted how we invest. From allowing average investors to access the same investment opportunities as only a few years ago to allow us to automate our investments and use sophisticated strategies, technology has changed our investing landscape for the better.

Technology has given everyday people access to a wide range of assets previously only available to institutional investors or those with deep pockets. In addition to stocks, bonds, mutual funds, and ETFs, there is now a vast array of alternative investments, such as cryptocurrencies and real estate crowdfunding platforms.

These options have made it easier for anyone to start investing in something they're passionate about or know about.

In addition to greater accessibility, technology has made investing more affordable. With the advent of online brokers, investors no longer need to pay expensive transaction fees or commissions. Furthermore, online tools such as robo-advisors can help investors automate their investment strategies for a fraction of the cost of traditional advisors.

Technology has also helped us become smarter and more precise regarding investing. From backtesting our strategies on powerful trading platforms to tracking our investments with mobile apps, we now have access to advanced data and analysis that was unimaginable only a few years ago.

In addition, AI-driven robo-advisors can now make intelligent decisions based on market conditions and investor preferences in ways humans simply cannot.

How Has Tech Affected Protection

The introduction of advanced technologies such as big data and machine learning algorithms has revolutionized the protection industry.

Companies can now quickly analyze an individual's driving habits, for example, to determine how insurable they are and what their premiums should be. Estate planning is much simpler than before, with many companies offering online will creation tools to ensure your loved ones are cared for upon passing.

Shopping for insurance and other forms of protection is also easier than ever—you can compare offers with only a few clicks. This makes finding the best policy tailored for you at the lowest premium rate possible. Technology has made this process far more efficient, empowering individuals with more options and choices when protecting themselves financially.


How has technology changed the way we pay for things?

Technology has revolutionized the way we pay for things. From mobile payments such as Apple Pay and Google Pay to virtual wallets like PayPal and Venmo, transferring funds quickly and securely from one bank account to another is easier than ever.

How has technology made saving money easier?

Technology has made saving much easier by allowing customers to check balances, transfer funds, view recent transactions, and set up direct deposits with just a few taps of their phones.

How has technology improved investing?

Technology has given everyday people access to a wide range of assets previously only available to institutional investors or those with deep pockets.


Technology has completely transformed the way we interact with our finances. From making access to credit easier to streamlining savings, spending, and investing, advanced technologies have made money management more convenient, affordable, and efficient. Whether looking for a better way to save or invest your money, there's never been a better time to take advantage of the many available tools!

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