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Each week, we answer money questions from around the web on the NerdWallet app. Here are three trending questions from September.
Should I shop incognito to get better deals?
The short answer is yes. Shopping incognito might help you find better deals, all because of tracking technology that allows retailers to use information like your location and purchase history to personalize prices.
(Shopping incognito prevents tracking cookies from following you around as you shop. You can activate this mode by opening a new tab labeled “private browsing” or “incognito.”)
That behind-the-scenes tech can even withhold discounts offered to other shoppers based on how much it estimates you are willing to pay.
By entering incognito mode when you’re browsing online, you can block some of that transmitted information, which could help you find lower prices and additional discounts.
But incognito mode doesn’t render you totally invisible to retailers. Your IP address and other signals can still send messages indicating details about you and your shopping habits. If you log into a loyalty program, even more details are available.
If that kind of surveillance makes you uncomfortable — or you just want to make sure you’re getting the best deals possible — consider these other tactics:
- Leave nonessential items in your online cart for a few days. The retailer may offer a coupon or lower the price to persuade you to complete the purchase.
- Compare prices without logging in. Then check the price again after signing into your account.
- Shop around. Try stores that don’t require loyalty accounts to access discounts.
- Compare unit prices across brands, package sizes and retailers. The lowest advertised price isn’t always the best value.
- Change the days and times you shop. Wait for a sale if the purchase isn’t urgent.
- Consider using a virtual private network, or VPN. See if masking your location changes online prices.
Most importantly, don’t rush through your purchases, and only buy what you actually want. Because deciding not to buy something is the easiest way to save.
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Should I use AI for financial planning?
AI chatbots can be a helpful tool for answering general questions about money or creating a budget, but there are also risks to relying on them too much.
The biggest risk is oversharing. Avoid giving a chatbot details like account numbers, Social Security numbers and other personal details, because you want to keep that information private and safe.
It’s also a good idea to get a second opinion on advice from a chatbot. Chatbots can rely on outdated information, overlook important context or confidently provide an incorrect answer.
For example, if you ask an AI chatbot how much you should save for college, it might not take into consideration all of the other factors in your life, such as other financial constraints, goals or retirement plans.
Chatbots can be helpful for answering basic questions, explaining unfamiliar terms and running calculations. You might use AI to estimate how your savings could grow, create a starter budget, compare debt payoff strategies or generate questions to ask a financial advisor. It can also offer a private, nonjudgmental place to begin exploring a money problem.
In other words, AI chatbots can help, but they also have their limits.
Should I lend my friend money?
Lending money to a friend can be risky both for your finances and for your friendship.
While the safest answer might be a simple “no,” sometimes we want to help a good friend. Lending them cash could get them through a difficult period, and we might want to know we could turn to them for the same kind of help in the future.
The first question to ask yourself is whether you feel pressure to help or if you genuinely want to. If it’s a real desire, then next it’s time to assess whether you can offer help without hurting your own finances. Do you have enough in reserve to continue paying your bills and meeting your other financial goals?
Also, you might want to ask your friend for more information. Are they facing a temporary or long-term financial hardship? Can you help them in other, nonfinancial ways, such as coaching them through a job search?
Perhaps you could offer to do their grocery shopping or pay one bill for the month. Those more defined forms of help can offer assistance within boundaries.
Some kinds of help, such as co-signing a loan or adding a friend as an authorized user on a credit card, are so risky that financial experts suggest avoiding them altogether. After all, if your friend overspends on your credit card, you are ultimately responsible for those payments.
It’s also worth viewing any “loan” as a gift, because you might never see that money again. And as long as you are OK with that, there’s nothing wrong with choosing generosity. Just make sure you’re not hurting yourself in the process.
