Social shopping sites have been characterized as a Facebook for people with a compulsion to shop and share.
They allow users to tell the world what they’ve bought, where they got it and how much they paid for it.
We think that’s a bad idea for all sorts of reasons.
But let’s focus on two that are clearly hazardous to your financial health.
First of all, some sites want users to provide logins and passwords to credit card and email accounts so they can search statements and receipts for purchases to post.
That’s crazy. Providing personal data like to anyone is just begging to be the victim of identity theft.
The results were hardly surprising when the blog VentureBeat did a Google search for the phrase “from card.”
It turned up 127 results from the social shopping site Blippy that included the buyer’s full credit card numbers.
We’re also horrified that some users think they’re engaging in some sort of wise money management.
Rachel Lawes, a British expert on consumer behavior recently told NPR that it provides a rationale “to spend your money on whatever the hell you like and feel good about yourself, feel morally shored up. Because tracking your spending is in itself a responsible thing to do.”
Let’s be clear.
Telling the world that you spent $41 for an iPad case, $24 at Applebee’s and $6,450 on a nose job (yes, it’s been done) is no substitute for real budgeting.