Managing Money in an Ever Changing Technological World
In a world where technology is constantly changing, many governments and central bankers make no secret of their long-term goals for cashless societies. Debit and credit cards are typically more common than cash in today’s environment, and technological advancements continue to provide new and innovative ways to manage money.
Avoid Carrying Cash
Many Americans rely on their bank or debit cards to handle daily expenses as opposed to carrying cash around in their pockets. For many people there is a sense of personal security by avoiding carrying cash, as well as a psychological block that prevents rampant spending without hard currency in the wallet.
However, bank cards do little to help build a person’s credit score. A credit score can provide options for long-term goals later in life, which can also improve a person’s overall wealth.
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The easiest way to build a credit score is by using a credit card, of which there are dozens to select from across the US. Credit cards can help pay for luxurious purchases considered more desirous for the cardholder rather than necessary. Many credit cards also offer reward points for travel, groceries, or even cash redemption which encourages people to use their cards, albeit responsibly to avoid ruining a credit score.
But the best credit card for each individual person may have less to do with reward points. Many people select credit cards based on their corresponding interest rates, which helps maintain low costs and affordable spending. A common modern way to find the best possible credit cards is to use online credit card comparison sites as the sites present unbiased data on credit cards, the providers, the benefits, and especially the costs.
While credit cards are popular, new technological innovations provide other options to spend or access money. One example is the firm Diebold teaming with the mobile payment provider Paydiant to develop a smartphone application to withdraw money from ATMs. The premise of the mobile plan requires smartphone holders to scan a QR code on the ATM to authenticate their identity, allowing that person to initiate a credit card withdrawal without the actual card.
Technology continues to change how people access, spend and manage their money. The goal of these new options is to provide more convenient and responsible methods for people to continue building their credit scores without overspending their budgets.
