Why your mobile money account could be making you poorer

Mobile money has revolutionised how Ghanaians handle their finances. From buying airtime to sending money home to your family in the village, MoMo has made life incredibly convenient.

But this convenience might be quietly draining your MTN MoMo, Telecel cash, or AT Money, account without you even realising it.

In this article, we highlight a few ways your mobile money could be making you poorer without realising and how to break free.

The trap of too-easy spending

Remember when buying something meant walking to a shop, counting out physical notes, and really thinking about whether you needed that item?

Those days are long gone. Now, with just a few taps on your phone, you can buy data bundles, pay for online shopping, or send money to friends who claim they're broke and need help with transport.

The problem is that spending money through mobile money doesn't feel like real spending. When you hand over cash, you physically see and feel your money leaving. But with mobile money, it's just numbers disappearing from a screen. This psychological disconnect makes it dangerously easy to overspend.

Small purchases drain you

Let's be honest, how many times this week have you bought data bundles? Once? Twice? Five times? Each purchase might seem small. GH?2 for WhatsApp bundles, GH?5 for social media data, but these micro-transactions add up faster than you could ever imagine.

Many Ghanaians are spending GH?50-100 monthly on data alone, often buying expensive small bundles instead of larger, more economical packages. The ease of MoMo purchasing means you're likely buying data impulsively whenever your bundle finishes, rather than planning your usage properly.

READ ALSO: 5 easy ways students can make money on campus without stress

The friend tax

We all have that friend who's constantly asking for mobile money transfers.

Bro, just send me GH?20 for trotro fare, I'll pay you back.

But how often do they actually pay back? Mobile money has made it so easy to send money that many people have become unofficial banks for their social circles.

Before mobile money, lending money required meeting in person or going to a bank. Now, a simple text message can guilt you into sending money you can't really afford to lose. The phrase MoMo me small has probably cost the average Ghanaian hundreds of cedis in loans that never get repaid.

Online shopping addiction

E-commerce platforms and online vendors have made it incredibly easy to spend money with mobile money integration. Seeing something nice on Instagram or any online shop? Just a few clicks and it's paid for. No time to think, no chance to sleep on the decision, no opportunity to check if you actually need it.

The instant gratification of online shopping combined with mobile money’s seamless payment system creates a perfect storm for impulse buying. You might find yourself purchasing clothes, gadgets, or accessories you don't really need, simply because it was so easy to pay for them.

How to break free from the mobile money trap

The solution isn't to abandon mobile money because it's genuinely useful. Instead, treat your mobile money account like cash. Set daily spending limits, buy larger data bundles monthly instead of small ones frequently, and think twice before sending money to friends who never pay back.

MUST READ: 5 Easy ways to protect your Mobile Money PIN from scammers

Consider keeping only the money you need for essentials in your wallet and store the rest in a savings account that's harder to access. Your future self will thank you when you're not wondering where all your money went at the end of each month.

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