DESIGN 100 PROJECT BLOG 1

Erin Jia
Mar 7, 2022
5 min read

Updated: Jun 13, 2022

DISCOVERY

PROBLEM SPACE

The problem space that my client gave to me is budgeting. My client explained that he is having difficulty controlling his budget. He said that ever since he got paid for the first time, he loved spending money on things he liked and often ended up with empty pockets when he needed the money. Especially he is now living on his own, having to pay for expenses like food costs and rent. He worries that overspending money and not knowing how to save his money would cause severe consequences like not having enough money to support living expenses. During the discussion with my client, my client wants to control his budget better. However, when he got the money for the month, he still consciously overspent on buying clothes and stuff like that.

EMPATHY CONVERSATION

I started by carrying out an unconstructed interview with my friends and family. For this part of the interview, I asked them what they think they usually spend their money on and how they feel about their budgeting ability.

Interviewee 1 High school student

The first person I interviewed is a high school student living with roommates outside his school. However, he thinks he managed his daily expenses well, but he sometimes overspends on buying clothes. And similar to my client, he also felt anxious when he consciously spent too much money on non-necessary expenses. The only thing he can do is restrain himself from reducing impulsive spending. Overall he considered himself a person that has the ability to self-control.

.Interviewee 2 College student

The second person I interviewed is a 2nd-year college student living in NYC alone. She considered herself a terrible person when it came to managing her budget. She said that she is terrible at managing her budget. Her parents will give her a certain amount of money for her daily expenses every month, and she also does an art/ crafts commission on Twitter. The money she earned from this is also a part of her disposable income. However, she spent most of the money on her hobbies and usually found herself not having enough money to buy food. And she felt regret whenever she spent a lot. Even though her parents don't blame her for spending too much, she constantly worries about her way of planning the budget. "I will eventually live on my own someday like I know I can't be like this forever. When I graduate and get paid, I'm afraid I'll continue to spend my money like this; I'll go bankrupt. "

Interviewee 3 College graduate

The third person I interviewed is currently a college graduate who lives independently. She lives in Hangzhou, China, with her cat and is a game concept artist. She told me she wasn't good at managing her money until she got her job. "I have to take care of my cat as well. So it isn't really about just me. I have to plan things out to ensure the money is sufficient." She told me that at the end of every month, she will transfer a small amount of the money that is left to a fixed deposit account, "It doesn't need to take much; I'll usually have like 300-500 Yuan (approximately 75-125 NZ dollars) left at the end of each month, then I take half of the money away as part of my saving." And she also buys low-risk financial products using her savings. "If you told me I could manage my money like this a few years ago, I don't believe I can do that." She lived in a residential hall during college. Her meal plans are pre-paid, so she overspends a lot; like the previous interviewee, she felt anxious and insecure spending all her money on video games and makeup. But as soon as she started to plan and consciously control her budget, that anxiety disappeared. "It was hard at the beginning, but once you know how to plan your budget, you will feel much more secure cause you always have something in your pocket."

OBSERVATION JOURNAL

Since I can't observe my interviewees spending their money, I think of another way to record the process of my clients. I asked about their monthly budget and which categories (i.e., entertainment/transportation...etc.) they spent the most. And I make three pie charts that show their consumption habits.

THE FIVE WHYS

Q: Why do you overspend your money?

A: I don't know why, but if I saw something like a cute T-shirt, and I can't have it for some reasons. It makes me anxious. But once I actually bought it, I started to feel like maybe I shouldn't do it.

Q: Why do you feel anxious when you can't buy the stuff you like?

A: You know the kind of feeling when you see something, and you say, "Oh! I gotta have it! ". If I can't have it, I'll probably still think about "why I didn't buy it" even before I sleep.

Q: Why do you feel regret once you buy your favorite stuff?

A: Well...I might not have enough money at the end of the month; sometimes I can't even go out and eat with my friends because of that, it is kind of awkward...

Q: Why didn't you make a rough plan for your budget so you will have enough money to buy what you like?

A: I tried to make plans, but none of that actually worked out well. The plans are either too impractical, or I don't have the motivation to follow them. Plus, I am a lazy person, and I can't keep track of my money.

Q: Why can't you keep track of your money well?

A: That kind of leads back to the first question you asked. I have basically zero self-control over my budget, so my money went out fast. And whenever I check my bank account and see how much I still left I just can't help but worry about "how am I gonna make it through this month". So I started to consciously not to check my account that often unless I really need to.

OBSERVATION

Gen-Z don't like to make plans for their budget.
People with stable financial income have better budget management skills than Uni students.
Gen-Z like spending money on virtual commodities like video games and streaming applications.
Most Uni students are worried about their money management skills.
Most people sometimes feel regret after they buy something they like but don't need.
Gen-Zs got most of their financial knowledge online.
Gen-Zs feel most financially insecure compared to other generations.
Most people feel stressed when they check their bank accounts.
Most people occasionally shop impulsively.
Gen-Zs are mostly likely to spend all of their money at the end of the month.

INSIGHTS

Gen-Z are more willing to spend their money on their hobbies rather than what they need.
People who don't have enough self-control are more likely to have problems with managing budgets.
People who procrastinate are likely to have budget managing issues too.
People with inconsistent monthly budgets are most likely to overspend their money.
People who don't have any savings are likely to have budget-related problems.