What’s the couch economy and how is it affecting your spending?

These days, it is possible to get just about anything without leaving the comfort of your couch. You can order takeout, get groceries for the week, replenish household essentials, download an in-theater movie or even restock food for Fido.

But all that ease can make it that much easier to spend. You may also end up paying a price markup. Before you fall for the convenience of it all, here is what to know about the so-called couch economy.

What is the couch economy exactly?

The term refers to the “growing share of domestic spending” that “now occurs through e-commerce websites, mobile apps and other digital channels,” as opposed to at physical stores, said Visa in a report on the phenomenon. Put another way, it is the burgeoning digital marketplace “where consumers can seamlessly shop, dine, work and consume entertainment without leaving home.”

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Since the Covid-19 pandemic, Americans have increasingly chosen to stay in rather than go out. While this may seem like it would lend itself to lower levels of spending, the couch economy “shows us that hanging at home still offers plenty of ways to spend money” — and with less effort than ever, said NerdWallet.

How can the couch economy influence spending habits?

With online spending, there’s “absolutely no friction and it’s really hard to keep track of,” said Corey Bates, an investment adviser representative at Solomon Financial, to NerdWallet. “If you’re not reviewing your budget and being intentional with your money, it’s really easy for it to slip away.”

Whether or not you have consciously noticed, “online retailers’ checkout flows are designed for near-zero friction,” with features like “stored cards, one-click buttons, autofill shipping and express wallets,” said Kiplinger. All of these elements “move you from want to ‘order placed’ in seconds.”

On a psychological level, spending digitally can simply feel less real than handing over money in person. “With cash, you see less money in your hand,” whereas “with digital, you see a number in an app sometime later,” said Kiplinger. “Autopay and BNPL plans can further blur the picture, spreading the cost out and moving it away from the moment of purchase.”

What can you do to keep better tabs on spending?

Perhaps the easiest way to intervene when it comes to mindless digital spending is to increase awareness. Start taking note of what you are ordering, how much you are spending and when you are most likely to hit ‘order.’ If you are ordering things out of boredom or a lack of planning, those are things you can address.

Being aware of the cost markup involved can also make you think twice. For instance, when you use Instacart to buy groceries, there is a good chance you will end up paying a “service fee, a shopper tip and a markup on items at the store,” said NerdWallet. Sometimes, that may be worth it — but other times, you may be forced to admit that it’s not.