How The Digital Economy Changed How We Spend
- Editorial Staff
- Jun 3, 2025
- 5 min read
Updated: Jul 22, 2025
Here’s why that matters
As time progresses, so do our spending habits. One major part of life that has changed from how it was 10-15 years ago? Personal finance.
Just ten years ago, a typical monthly budget would be simple. You would have your rent or mortgage, groceries, utilities, transportation, and maybe a couple of splurges such as restaurants or takeaways throughout the month. Financial planning was mostly centered on physical, tangible things, and so was our sense of what counted as real expenses.
Look at our habits today, and that image looks a whole lot different. Our daily lives are now integrated with tech across the board. We have cloud storage for our files, fitness apps instead of gym memberships, multiple streaming subscriptions, in-app purchases, online course platforms, and even digital entertainment like online slots — often all set up from a single smartphone.
It’s clear that these spending habits aren’t fringe behaviors anymore; they’re just everyday spending behavior of the average consumer. They’re completely normal, and in many cases, they’ve replaced the older, physical expenses altogether. Just look at food delivery apps and so much more.
This fundamental shift is now the norm for how we value and interact with our money. Spending is no longer limited to just the things that you can touch or hold – and it’s all about access, convenience, experience, and connection in the digital space.
As we continue on this path of a digital world, the smartest thing you can do is understand the changes and adapt. Spending has altered, which means our budgeting has to as well, and we’re going to explore all that there is to know about digital spending.
Financial Mindfulness
We’re not saying that you need detailed spreadsheets and alerts for every penny that you spend… But digital expenses can add up quickly, since there are no physical reminders of the money going out, and there are a few little tricks you can pick up to help you make more intentional choices in a modern spending world.
Create a space for digital fun in your monthly budget
‘Fun money’ should be included in every budget, depending on how much disposable income you have after bills - and today, it’s important to think about digital fun as well as physical fun.
Life has to go on as normal, and you should always leave room for digital entertainment. Let’s say, for example, that you love playing online slots and it’s one of the most effective ways for you to unwind after work. That should go into your budget! In fact, it’s really important to think about things like this, because having fun and relaxing is vital for your mental health.
You should spend a bit of time considering your entertainment costs. If you regularly play online slots, you’ll probably have a pretty good idea of how much money you want to put into this activity overall, and you can draft this into your digital entertainment budget. As you might already know, there are hundreds (thousands!) of great slots games out there to explore, and having a pre-set budget that you know you can spend without worrying lets you enjoy them to the max. Whether you like to try something new every week or return to your classic favorites again and again, get your budget clear in your head (or on paper), and then plunge in!
It’s important to remember that life is all about living, and sticking too close to a budget that doesn’t cater to the fun side of things won't do you any justice. Make room for the things you love, whatever they are, both in the physical and virtual realms. Your budget might include planning money for the movies, playing online slots, heading to the hairdressers, enjoying trips out, going to restaurants, and so much more. And always remember, it’s entirely personal. The more disposable income you have, the more likely you are to have a large “fun money” budget - but make sure you do have one and that you’re spending it on the things you care about. Just because our ways of spending have changed doesn’t mean we should ignore the budgeting factor!
2. Separate wallet
Another great tip is to use prepaid cards or separate wallets for non-essential spending. This gives you a built-in cap without constant tracking, eliminating a task from your everyday life and making things simpler. To use our slots example from above again, you could decide you’re going to only link up a specific card or wallet with the platform of your choice, and transfer your dedicated funds to this spot!
3. Do a subscription audit every quarter
How many subscriptions do you currently have each month? Most people wouldn’t know the definitive answer without running through their bank statement first – why? Because 4 in 5 UK adults are signed up for at least one subscription service, and they're spending £696 a year on subscription apps.
As we’ve gone increasingly digital and lost some of the physical reminders of spending (e.g. a magazine lying on the coffee table), it’s become even easier to lose track and end up paying for a subscription you’re not using! To start with financial literacy, people should spend time looking through their bank accounts or app store activity once a quarter and cancel what no longer adds value. This gives you more money to put into the things you love!
Digital Spending Isn’t Optional Anymore
Most people today pay for at least one “invisible” service at any one time. This could be:
Streaming content
Cloud storage
Crypto wallet fees
Digital learning platforms
Virtual events
Recreational experiences like online slots
Mobile apps
We no longer draw a hard line between “real life” and online life, and our spending habits reflect that evolution. For many, digital experiences have become part of daily routine, stress relief, or entertainment — just like going to a cinema or picking up a new book.
Of course, some of these experiences do offer ways to save money while you enjoy them - you’ve just got to look out for the deals. For example, if you’re thinking of joining an online casino, keep an eye out for welcome bonuses, which most platforms offer to encourage new players to check them out. These platforms will also often have other promotions on the go, helping to shave some of the cost off your experience and give you more bang for your buck.
Why This Matters for Financial Literacy
At Money Mentor, we believe budgeting shouldn’t be about saying no. It’s about saying yes, with intention, while living within your means.
Understanding where your money is going is the foundation of financial clarity. And that includes the newer, digital spaces, things you subscribe to, money you spend on physical items, and any micro-luxuries.
There’s no judgment around spending habits as everyone in the world is different and has different priorities. We just need to recognize how we’re dividing up our funds and feel happy with this! The new economy is deeply personal, digital, and increasingly fluid – and the more conscious you are, the more confident you’ll feel about your choices.
As long as you have made the decision to spend and you’re happy with that, then nobody else can judge you.
Related Content
