Cell Phone Bills--this is not good.

[bunnys]

http://redtape.nbcnews.com/_news/2012/11/19/15219831-newest-family-budget-killer-its-the-300-cellphone-bill-readers-say?lite

[Blackdog Lin]

I don't want to sound harsh or anything.....but I can't afford a smart phone, therefore I don't have one. There are MANY items out there today that might make my life funner, or easier, or whatever - but I can't afford them, so I don't have them. It's just that simple.

[herbgeek]

I think too many people confuse needs and wants. A child may need a phone (because pay phones have mostly disappeared), but they don't need constant internet on the go. Most adults don't need internet on the go either (outside of for work). Its fun and all, no doubt about it, but not a necessity that can't be cut.

[razz]

We have cellular internet which is the only internet available and it gets expensive very quickly so I limit it.... I have a cellphone for a flat $11.50/mth that is for emergency use only. Large uploads or downloads require a trip to the library on my next time in town.

Landline phone has just a basic phone service with no add-ons beyond the dialtone and it is $23.92 including tax.

Our long distance is 3.5 cents a minute anytime in North America through YAK.
Data plans will cost so they are not an option for us.

I have the money but make the choice to limit where I spend it.

For centuries people used letters with great success to keep in touch but that does not seem to be the choice anymore.

[SteveinMN]

It is a bit of a morass.

When I got my first cell phone I dropped my land line since I was forwarding that to the cell phone anyway. It offset the price of that first phone and plan considerably.

Fast forward to today, when the family plan bill frequently falls just under $200 for two smartphones and a dumbphone. I've looked at our invoices carefully and, right now, we're on about the best plan we can be. But we recently held a family meeting with DSD to tell her to not do anything that will extend our contract. Her usage is half the bill. She's 26, just bought her own house, makes good money, and so she should be on her own. DSD is reimbursing us some for her usage (something which clearly is not being done by some of the parents in the linked article). But, right now, when (not if) she loses her phone or alters the plan, she keeps us in that indentured servitude of the Plan.

I've determined that my wife and I can get by easily on prepaid plans (haven't seen any prepaid family plans yet), so I think that's how we will go when the contract ends. It should drop our bill by about 2/3. But we'll keep one smartphone. It serves as a GPS and as a WiFi hotspot when it's useful to get on the Internet and WiFi is not available (to check hotels when traveling, compare prices, etc.). Would that more people would consider such plans. In their defense, I know that many lower-income people use their cell phone for Internet access and don't have a separate home Internet plan, so from that perspective the money they're spending on the cell phone data plan is offset elsewhere. But I think most people are seduced by the thought of buying what is essentially a handheld computer for "cheap" rather than shelling out the $500-600 it would cost to buy it outright and by the thought of getting a shiny new phone every couple of years (admittedly, many cell phones lead tough lives). It's the lure of easy payments, made easier by the cell carriers who are very vague about all the expenses. It's only later that people figure out just how much the convenience and flash can really cost them.

[creaker]

I think too many people confuse needs and wants. A child may need a phone (because pay phones have mostly disappeared), but they don't need constant internet on the go. Most adults don't need internet on the go either (outside of for work). Its fun and all, no doubt about it, but not a necessity that can't be cut.

I think this is a big one - the primary justification for kids phones is for emergencies and being able to keep in touch - which can be done with a cheap trac phone. What the kids feel they "have to have" is very different.

[fidgiegirl]

Didn't read the original article, but a comment for Steve: We have a "family plan" with DFiL, DMiL and DSisInLaw through Verizon. I hate it for a number of reasons, but meh, we're staying in it. But Bryce (DH) "owns" the plan, and none of us can do anything to change it, not get a new phone, not change our minutes, etc. without the password. Now everyone has it, but I kind of want to change that for the same reason you say - who knows how long they are trapping us in that plan when they get sick of their phone, etc. Long story short, if you "own" the plan, perhaps you can block DSD from doing anything by changing the password. Doesn't sound like she's malicious about it, just doesn't stop to think? This might be enough of a bump to keep the plan from renewing against your wishes.

[simplelife4me]

They choose to pay that when there is very affordable prepaid phones. Their money or their life...

[bunnys]

I am a teacher and mentioned the gist of the article to the some of the kids today. I said "if no one you knew had a smart phone would you want one?" They responded "no, I wouldn't care." That says it all, huh?

I have had kids tell me the cell phone is the bestest toy they ever got and now in my school they are openly allowed to use it during class and are encouraged to do so. I have let go trying to control the cell phone usage in my classroom bc the administration has said "don't bring it to us."

I think it's pretty tragic that families can't do anything with their disposable (yes, disposable) income beyond paying the cell phone bill.

And if I had kids that were teenagers I'd have a pretty tough time not getting my kid a smart phone because ALL (and I mean ALL) the kids have them.

For the record, I have a dumb phone that costs me $30 per month but I don't have to deal with peer pressure, either.

[SteveinMN]

if you "own" the plan, perhaps you can block DSD from doing anything by changing the password. Doesn't sound like she's malicious about it, just doesn't stop to think? This might be enough of a bump to keep the plan from renewing against your wishes.
That's a good point; thanks! Actually, DW "owns" the plan (she and DSD were the 'family" before I arrived on the scene). I wormed my way in because I physically pay the bills and needed the password to download past invoices and see how we were doing on the plan. I don't think DSD has the password; when she got her latest phone, DW had to be with her because she is the account owner.

I think in our case some of it is the insidious nature of cell phone carriers (try to determine all the taxes and fees before you sign) and a relatively low interest in things technical. I don't think DW realized that letting DSD choose a smartphone would incur the charges it did: a higher subsidized price and a data plan at $30/month. DSD also took out insurance on this phone, at $8/month. One by one, it all makes sense. But add it all up ... and you've got a $200 cell phone bill. I also don't think DW and DSD know much about the economics of prepaid cell phone service and don't realize that us relatively light users would do better than on postpaid.

We've already had "the talk" though we kind of soft-pedaled the "you'll be on your own" some (OTOH, the kid is an accountant, she can add 2 and 2 in this case), so we should be okay. I can imagine this would be a lot more difficult with peer relatives and not children....

[Fawn]

And if I had kids that were teenagers I'd have a pretty tough time not getting my kid a smart phone because ALL (and I mean ALL) the kids have them.


bunnys--not all the teenagers have them. There are three teenagers at my house, and I pay their cell-phone bill (which I think is too much) but there is not one smart phone in the house. $126.46 was last month's bill. And when DD goes off to college, she will be removed from the plan. Yes, she will have to pay more than I do, but it is a lesson in financial responsibility and making choices.

[Square Peg]

bunnys--not all the teenagers have them. There are three teenagers at my house, and I pay their cell-phone bill (which I think is too much) but there is not one smart phone in the house. $126.46 was last month's bill. And when DD goes off to college, she will be removed from the plan. Yes, she will have to pay more than I do, but it is a lesson in financial responsibility and making choices.
Our house is similar. We have 2 teens and one preteen. We have prepaid tracfones. I have one and go through about $200 per year in minutes. DH has one and goes through about $100 a year. So, $300 per year. The boys have one prepaid that they share, but no one ever remembers to carry it. I have been spending $100 a year to keep it active, but I might let it expire, since no one uses it.

[ToomuchStuff]

And if I had kids that were teenagers I'd have a pretty tough time not getting my kid a smart phone because ALL (and I mean ALL) the kids have them.


What an ignorant and extremist comment. Really, all?

[Spoony]

Republic Wireless is offering plans for $19/month for unlimited talk, text, and data. You have to purchase their cell phone (at $259). It switches seamlessly between wifi and cellular service, greatly reducing usage cost. The idea is that since wifi is becoming ubiquitous, why not use it in place of expensive cellular service when possible?

Currently, I'm paying $30/month for T-Mobile's prepaid plan, which includes 1,500 minutes or texts, and enough data to surf and check email a bit. Once my mobile phone becomes beat-up and almost unuseable, I'll switch to Republic.

[Zoebird]

In the US, DH and I were on a family plan -- which was two phones that could talk to each other for free, and we could list 5 family members on the plan as well to talk to them for free. Then we had X minutes per month. It was $35.00. We used land-line and dialup, which cost us about $30/month, and that was it.

When we moved here, we got land-line and broadband which is $100/mo. We had to have the land line to get the broadband. Then, we got a cell phone (one) which is not smart (but it does have internet capability which we do not use), which has all minutes cost something but 500 texts (people here text a lot), and then that's our main line. . .which costs us $45/mo. We rarely use it.

I do not think that children need cell phones. My husband doesn't need one, really (or, we switchw ho has it, actually), and when he's out and about and needs a phone, he either A. asks someone on teh street if he can make a quick, emergency call or B. goes into a shop and asks to use the landline. Guess how often either of us are refused this?

How about never! :)

THere are plenty of phones around. If a child is in need, s/he can ask an adult, another child, a police oofficer, a shopkeep. . . they don't really need their own phones IMO.

[rodeosweetheart]

Republic Wireless is offering plans for $19/month for unlimited talk, text, and data. You have to purchase their cell phone (at $259). It switches seamlessly between wifi and cellular service, greatly reducing usage cost. The idea is that since wifi is becoming ubiquitous, why not use it in place of expensive cellular service when possible?
.

Can you run your laptop off of the Republic Wireless phone while traveling? I need to do this occasionally for work, and would only get a smart phone so that I could use it as a mobile hotspot.

[gimmethesimplelife]

Confession time.....I recently upgraded to a smartphone with Virgin Mobile, only to find that it didn't work. Totally defective. So then I went over to Radio Shack and bought the same phone because I was determined to have one - only to have it for less than 24 hours when I returned it and swiched to a much simpler slider phone a notch up from a simple flip phone but less technology than a smartphone. I found the smartphone to be too much technology condensed into a small unit in my hand and it was very intimidating. There seems to be this expectation that if you buy one you are up to figuring it out pronto, as the manual the phone came with only detailed the basics of setting the phone up. This does not work for me - I believe in a phone being something simple that you pick up when it rings and gee, that's it, that easy. I am not seeking technology to figure out in a cell phone - I want it to be simple and not aggravating or confusing. So I let the smartphone go and am glad I did.....Why I even upgraded in the first place - these new phones look so cool - shows that I am not immune from marketing, gotta work on that.....Rob

[Gardenarian]

Republic Wireless sounds like a good deal, but the only phone you can use on it is the Motorola Defy XT. It's a 3G device and you can not use it as a wifi hotspot. Republic charges $250 for it when the retail price is listed as $99. It does not have many of the feature people hope for in a smartphone.

I live in a very high-tech area and feel increasingly left out of the loop by not having a smartphone. I've done a lot of asking around on this, and most people are paying about $100 per person for their family smartphones. Almost all of the students at the community college where I work have one; in fact, they need one for many of their classes.

Mr. Money Mustache (http://www.mrmoneymustache.com/2012/10/11/our-new-10-00-per-month-iphone-plans/) has advice on how to run a smartphone cheaply, but it's pretty complicated for those who are not IT people. (and I am not.)

I know at some point we will end up getting smartphones, but not quite yet.

[SteveinMN]

There are some featurephones ("dumbphones") which have a surprising number of features. For my business, I have a Sony-Ericsson TM-506. It was sold in the U.S. through T-Mobile and has T-Mobile's 3G data on it. It's got the usual mobile phone features. But it also can sync with Windows or Mac so all your data isn't necessarily stuck on the phone. And it can run Java apps, which you can get directly on the phone and which let me use the phone as a GPS for cheap (something like $30 a year plus airtime), let me view (but not edit) PDFs and Microsoft Office documents people may send me in email, let me use the phone as a WiFi hotspot when I need to, and let me use a Web browser for a lot of "normal" Web sites (that is, not just WAP sites). Because it's not a smartphone, T-Mobile doesn't charge $30 a month for data. You wouldn't want to use a lot of data on this phone, because the screen is tiny and the phone is limited. No physical keyboard, either. But instead of spending for a smartphone and then paying $360 a year for data, it's a worthwhile alternative. Before the Sony I had a Verizon LG slider that also had some "smarter' features and a low-cost data plan, but Verizon is pretty good at engineering the 'extries" out of their phones, so it wasn't quite as capable as this little Sony flip phone. Still let you get to popular Web sites, however, and had a good keyboard.

[Fawn]

Zoebird- it is a rare child or adult that needs a cell phone. But I must say that having 3 teens in an average of ten separate activites per week, I find it very useful for them to have phones. They call me for rides, call a sibling for a ride, call me to ask if they can go to a friend's house, text me directions, find each other at the State Fair or bookstore, etc. When DS#2 was at state cross country meet, we were able to connect quickly so that we could drive 2 hours to DD's concert band performance in another town, and set up dinner plans while enroute. When DS#3 got lost on a bike ride, he was able to call me and give me the street names of where he was, so I could guide him home. (Would he have asked to borrow a phone to ask directions?--not likely.) It is the most expensive convienence item I pay for and it is sooooo worth it.

If I had to chose between a way to watch movies at home and cell phones for my crew--cell phones!

[pony mom]

When I hear people discussing the pros and cons of their smartphones and how they can't wait to upgrade, I breathe a sigh of relief because I'm content with my simple flip phone and $20/mo. no contract plan from Virgin. I spend too much time on the internet when I'm at home and have no plan to do it anywhere and everywhere with a phone.

Many people use their phones for entertainment. How did they live before? Heaven forbid they talk amongst themselves or read a magazine when faced with nothing to do while waiting for something.

[simplelife4me]

+1 pony mom

[heydude]

I do not understand why people have to have a full blown computer capability on their phone. Do they not have a computer at work AND at home?

What is all that talking and texting anyway? I have yet to over hear ONE IMPORTANT PHONE CONVERSATION!

And why is a 50/mo plan considered like the "cheap" version. That is a lot of money! And $100 is much more common even still!

[SteveinMN]

I do not understand why people have to have a full blown computer capability on their phone. Do they not have a computer at work AND at home?
Have to have? Not everyone has to have a handheld computer (what a smartphone is, essentially). But, when I was working, it certainly added to the quality of my life to be able to get out of the house or work when I was "on coverage" (which eventually morphed to 7x24). Without at least a reasonably smart phone, I would have been tied to wherever I could get an email or text message. It is convenient to have a GPS on the phone rather than buy and carry an entirely separate gadget. Similarly, I prefer to keep an electronic calendar and address book. It is convenient to have the same on the phone and to have them synchronized, for the sakes of both currency and backup. My phone also is my calculator and, though I tend not to use it that way, many people use theirs as their portable music player (Walkman/iPod) and (video) camera/photo album. All in one handy device.

It probably would be cheaper for me to buy wheat and make my own flour. I don't do that, either.


What is all that talking and texting anyway? I have yet to over hear ONE IMPORTANT PHONE CONVERSATION!
Heh. Maybe that's the point. :~) Personally, I'd rather not overhear someone talking about their cyst or arguing with their cheating boyfriend. Text messaging is, in that sense, much more private. It also waits for me if I'm not available and is accessible faster than a voice message.


And why is a 50/mo plan considered like the "cheap" version. That is a lot of money! And $100 is much more common even still!
It's relative. There's a thread in the Transportation forum about whether a $400 car payment is a lot (short answer: yes and no). In the U.S., even a cheap prepaid phone is going to run about $10 a month average for very minimal use. More typical voice and text coverage runs a minimum of $30 a month with the national carriers. So another $20-30 a month for all the uses you can give a smartphone does not seem out of line to me. Of course, everyone's usage is different. If I were active in my business, a $50 monthly mobile phone bill would be cheap considering the business it could give me and the time it would save me.

[Tammy]

I have a smart phone precisely because I choose not to own the following:

Home computer
Home internet
Home phone
Gps device
Camera
Video games
Books
Encyclopedia set
Radio
Clock
Cd player
Calculator
Alarm clock
Flashlight
Calendar
Atlas
Phone book
Address book

My phone does all that .... Add up the cost. I think I'm breaking even. Maybe even saving. And its portable.

[heydude]

wow tammy, i never thought of it that way

[mtnlaurel]

Gripe from over the holiday....
2 distant relatives whose children are on free b-fast/lunch at school and there they are with their Fancy Phones.
It totally chapped me and got me into my 'Judging Judy' space!

Unless work is paying for my fancy phone I have a hard time reconciling the cost for myself.
I'm not working at the moment, so we work hard to shave costs at every turn.
So I am sticking with my flip phone for the moment with the classy electrical tape on the back to hold on the battery cover.
I could totally use a Smart Phone though - the kids' activities get changed on a dime many days and having access to email on the go would be a big help.
But the work around for me right now is I have another parent text me if there are last minute changes.

Just think of how much consumer demand the smart phone revolution has created in these lean, lean times.


I don't want to sound harsh or anything.....but I can't afford a smart phone, therefore I don't have one. There are MANY items out there today that might make my life funner, or easier, or whatever - but I can't afford them, so I don't have them. It's just that simple.
Amen to that Blackdog Lin! That's exactly why I come to this board.... to get support for what is TRUTH.

[Dhiana]

+1 Tammy!

I'll add to the list:
Kindle/eBook
Japanese/English Dictionary
Metric/Imperial Converter
Scanner
Calorie counter

[decemberlov]

Home computer
Home internet
Home phone
Gps device
Camera
Video games
Books
Encyclopedia set
Radio
Clock
Cd player
Calculator
Alarm clock
Flashlight
Calendar
Atlas
Phone book
Address book

.



+1 Tammy!

I'll add to the list:
Kindle/eBook
Japanese/English Dictionary
Metric/Imperial Converter
Scanner
Calorie counter

These are all the reasons why I love mine as well.

Plus I use mine for:

digital cookbook
guitar tuner
shopping list
online banking / transferring
I can get audio books on it from the library for long drives


I do however hate that people are forever on their phones. Strangely enough, it seems like there has been a communication breakdown since so many people are sucked into their phones all the time. I purposely removed all the app shortcuts from my home screen because I found myself picking it up and checking facebook or something similarly stupid out of boredom. I do this far less frequently now that I have to go through a few steps to access it instead of it being just a click away :laff:

[Gardenarian]

You guys are making me sway toward smart phone! Now I'm thinking, dd could do Khan Academy anywhere. Oh, the mind boggles...

[bunnys]

Wow Tammy! You don't have a clock?

Blackdog: I can't afford one, either.

[Dhiana]

Wow Tammy! You don't have a clock?

A clock is just another (most likely) Made in China thing that needs to be dusted.
The car has one if the phone/network is not working.

[jennipurrr]

We didn't move to smart phones until recently, and only because they became subsidized by the employer. People's data use in the article astounds me?! DH and I both have the cheapest data plans offered by ATT (300 MB I think) and have never come close to going over. I imagine these folks are the ones who never switch from data to wifi when it is available.

I would like to see the followup article with people with inexpensive bills. Right now our phone cost is about the amount of the employer stipend. Since we get the same stipend irrespective of our provider, I am considering switching to a prepaid service when were out of contract next year. Mr. Money Mustache wrote an interesting article about this recently - http://www.mrmoneymustache.com/2012/10/11/our-new-10-00-per-month-iphone-plans/

[Tammy]

There's a clock on the microwave. And in the jeep. I had an old alarm clock/radio but I stopped using it. I just glanced at it sometimes at night ... Decided I don't like the red glowing light in my bedroom. So no, I don't have a clock. I own one wristwatch cause I need it for work. To count pulses. That's all my timepieces ...

[SteveinMN]

You guys are making me sway toward smart phone! Now I'm thinking, dd could do Khan Academy anywhere. Oh, the mind boggles...
Gardenarian, keep in mind that smartphones -- even the biggest ones -- have tiny screens -- no more than about 5". Some phones do not play Flash packages or other video formats. A poor keyboard for someone who can touch-type. And data is much more expensive than it is for a home Internet connection. I use my smartphone for almost as many things as Tammy and decemberlov and it is possible for a smartphone to substitute for a real personal computer for a while, but for intensive learning, I can think of more appropriate devices. Maybe even a good-sized tablet (10" or so) with an on-demand data package.

[Tammy]

Steve is right ... I only made the switch to "smart phone as computer" after I finished my last degree.

I am doing my reading and continuing education on it for my upcoming certification with ease. But that doesn't involve any writing.

[lucas]

I switched up to a smartphone about 18 months ago, chiefly because I wanted to be able to access email when away from the office or home.... so what happenend? SOme months later I realised that the whole beauty of email, in a professional context at least, is that you can slow down the pace of the communication and dictate how quickly certain things move forward... some emails I want to respond to right away, but others I prefer to wait until later in the day or tomorrow for my own 'strategic reasons'... the upshot of this was that I removed the email from my smartphone, and only use 'whatsapp'.... My phone is probably capable of planning and implementing a counter-insurgency strategy in a failed state, but all it actually does is send five-word messages and an occasional smiley face... On the advice of a 'tekky' friend I switched onto the lowest-cost data plan, and try to keep my calls short... my bills have come rights down as a result...

[ApatheticNoMore]

On the advice of a 'tekky' friend I switched onto the lowest-cost data plan, and try to keep my calls short... my bills have come rights down as a result...

What is the lowest-cost data plan?


I don't want to sound harsh or anything.....but I can't afford a smart phone, therefore I don't have one. There are MANY items out there today that might make my life funner, or easier, or whatever - but I can't afford them, so I don't have them. It's just that simple.

That's how I feel about buying a house. Sure it has some advantages over renting (it also has disadvantages as well of course), but I think the bottom line is I don't make that kind of money anyway. So no matter how financially responsible it would be to do so (actually since I can't afford it, it's not), or how wonderful it is to grow my own food in my backyard and EVERYONE *SHOULD* DO BE DOING THAT, or think of the energy efficiency improvements I could make, or how it has tax advantages, I just don't make that kind of money.

As for smart phones, I can see the uses. Take Japan for instance, they often take the train to work, their train commutes often run an hour or more each way. They are big on using electronic devices on the train. If I took the train it would run me over and hour each way (it takes longer than driving which only eats up about 2 hours everyday total). See an electronic device would come in nice then. Stuff like that.

[Dhiana]

Take Japan for instance, they often take the train to work, their train commutes often run an hour or more each way. They are big on using electronic devices on the train.

Smart phones were initially a hard sell here in Japan and the traditional clamshell, non-touch screen, real buttons type phone still looks to be the most popular. Personally I think it's because their smaller hands that make it too difficult to use a big touch screen style smart phone and hang on while standing in a train on the commute home.

"If I took the train it would run me over and hour each way (it takes longer than driving which only eats up about 2 hours everyday total)."
Right now your drive time is spent driving. Think about all the things you could get done when on the train. Your train time is your time! I make this productive time for me as do many others...usually I'm crocheting, studying Japanese, or reading, many people are doing homework, writing a book, sketching, or anything they like to use their phone/computer for...some are watching TV on their clamshell phones!
What could you accomplish with that time freed up from driving?