Digital Spending Traps
Podcast Transcription
Money Talk is a podcast brought to you by PFCU, where we will share tips and tricks and talk to the experts on all things finance related. Join us as we cover everything from credit and loans to cybersecurity and careers. No matter where you are in life, PFCU is here for you.
Hi everyone, welcome to another episode of PFCU’s Money Talk podcast, I’m your host, Maddy. Thanks for tuning in to this episode.
With the holidays breathing down our necks, you might be feeling the pinch in your bank account a little more than usual. You might also be falling for some spending traps as you start online shopping for those holiday gifts. Whether you’re hoping to save a few extra bucks, looking for ways to avoid falling for those clever traps or the fact that there are clever traps at all is news to you, I’ve got you covered.
So, what is a spending trap? Well, have you ever been playing a game and needed just one more life to finish the level? That life may cost you, but what’s $1.99 this one time? The problem is, is that’s exactly how predatory companies want you to feel. As a matter of fact, Americans spent over $52 billion in 2025 on video game content and those microtransactions accounted for about 75% of all video game software spending.
Many apps, games, and websites use deceptive or exploitative tactics to convince you to make purchases. And while the costs of these items are usually pretty low, small purchases can add up. Being aware of the most common practices these platforms use can help you spot and avoid them before falling into the trap.
So, here are some of those financial traps.
The first one is sales. Many sites arbitrarily raise their prices so that they can offer sales with big discounts that really aren’t a discount at all but they make you feel like you’re getting this great deal. Who could turn down 40% off anyway? Not only are you not saving any money because the deal probably isn’t as great as you think it is but you’re also probably buying something that you normally wouldn’t.
Next is tiered access or paywalls. Some websites can suck you in by giving you access to certain parts of something for free, but many features (and often the best ones) aren’t available unless you pay up. There may even be tiers. You pay a little for some content, but you’ll need to pay more if you want the rest or want it without certain annoying features like ads.
The next one is subscriptions which I think we can all agree is a trap that is really easy to fall into. Paying $10 a month doesn’t sound too bad but if you consider it as $120 a year, that can take a heavier toll on your budget. Add into that the multiple subscriptions to different streaming services, games, apps, and websites and you’re suddenly paying a lot more money than you probably realize. Plus regular price increases that you just mindlessly accept don’t help either. And if that isn’t bad enough, most companies also require you to take the extra step of opting out of a subscription that automatically renews, so if you don’t take that extra step and you’re not paying any attention, you could accidentally get stuck paying for more than you intend.
Now this one is interesting and that’s careful pricing. It’s no accident that an extra life costs $0.99 or $1.99 instead of $1.00 or $2.00 and that an in-game item costs $8.99 instead of $9.00. When you read the “lower” price, it’s easier to justify buying it. I’ll even say that I’ve noticed like my kids and my husband, when we’re at the store, they’ll see something for, let’s say, $19.99, and say oh it’s $19! When in reality it’s $20. Is it a huge difference? No. But it is working for these companies.
Now let’s talk about psychological traps.
The first one being intermediate currency. Many games, apps, and websites require you to buy an intermediate currency that you use to buy things on the site. So, I didn’t know what this meant at first, but this may make a little more sense. It might sound familiar. So, they might call it jewels, or tickets, coins, or other things that you have to purchase to then use in the game. It’s a common way to hide what you’re actually paying. So, an item may cost 5,000 jewels, but what does that mean in actual dollars? If you already have the jewels in your inventory, you’re much less likely to check.
And similarly, when you buy the intermediate currency, you’re usually forced to buy them in predetermined bundles. This can lead to buying more than you need. So, let’s say, for example, you can get 200 tickets for $2.00 or 500 tickets for $4.50, but you only need 300 tickets. So, regardless of how you get there, you’re forced to spend more than you need and may even be tempted to buy extra due to the “good deal” you’re getting. I’ve even noticed things like the Starbuck’s app, if you want to reload a Starbuck’s card in there, it forces you to put in at least $10. So, if you have like a small amount left on a gift card and you want to use that, they make you reload it to cover your whole purchase but you have to reload it to be at least $10. So then what? You’ve spent $10 you didn’t intend even if it’s not actually “spent” yet and it just sits in the app.
Okay, I don’t think this one will be a surprise to anyone and that’s games that are created to be addictive.
Some games are designed to be extremely addicting. Like gambling, you may become convinced that you just need one more try to win or get the reward. Or maybe you feel good when you succeed. And if the game asks you to pay to keep playing, you’re much more likely to do so. Some companies know this and they take full advantage of it.
Also be aware of timed deals. These deals are used to entice you to buy things by giving you a time limit. For example, “Buy one get one half off, but only today,” or “Buy in the next five minutes and get double the points.” When you’re forced to make a snap decision for fear you may lose out on savings, you may buy something that you normally wouldn’t.
And lastly are pay-to-win scenarios. Similar to a paywall situation, some games may let you play for free, but to have any real chance of doing well or winning, you need to purchase in-game items or stat boosts. This can be particularly effective when players are pitted against each other in competition.
Now of course, some of these practices are more manipulative than others, but you should be aware of all of them when you make a purchase online or in an app. Ask yourself if any of these practices are being used to convince you. If so, it may be worthwhile to take a step back and reevaluate whether a purchase is actually worth your hard-earned money.
Thanks for listening everyone! See you next time!
Money Talk is a podcast brought to you by PFCU. PFCU offers many products and services to fit your needs, from our various loan and account options to our team of financial coaches to help you reach your goals. Make sure to take advantage of the many conveniences PFCU offers, such as the mobile app, mobile wallets, bill pay, and more. Visit our website at pfcu4me.com to learn more. PFCU is an equal housing lender and is federally insured by the NCUA.