'Smart Wallets' Help Control Spending

(CANVAS STAFF REPORTS) - For those who don't know when to stop spending, a new wallet has been created that has the sense they don't.

The problem is that people have trouble controlling their impulses to buy stuff, and as more and more banking is done online people often lack knowledge of how much cash they have in the bank or whether they're still within their budget.

To help solve this problem researchers at the MIT Media Lab have developed Proverbial Wallets. A Proverbial Wallet "gives us that financial sense at the point of purchase by un-abstracting virtual assets," its website states.

There are several different prototypes. The "bumblebee" buzzes through a vibrating motor whenever a transaction is processed by the bank. It makes a connection between making a purchase and "your hard-earned money being harvested by the bank."

The "mother bear" has a hinge that resists opening when the user is at risk of going over budget. The "peacock" grows and shrinks depending on the balance in the user's bank account.

Ecouterre said they are connected to smartphones via Bluetooth so they can monitor the user's bank account.

The idea behind the Proverbial Wallets is to squash unnecessary spending by reminding the users of the consequences of spending their money. This isn't necessarily what's on a spender's mind when buying something is as easy as swiping a credit or debit card.

The Consumerist said that's the problem for credit card users. That plastic card is too abstract and not a real reminder of the money that's being spent.

The consumer advocate website suggested the MIT Lab project may help people "feel the pain of spending a bit more acutely," which will lead them to think twice and make wiser decisions.