Essentially, this means that your provider is monitoring your internet usage, determining how much data you are using each month. Different activities require varying amounts of data. For example, downloading a movie or watching a show on Netflix uses significantly more data than sending an email. In years past, your cell phone provider likely charged you based on the number of texts that you sent and received or the amount of time you spend talking on your phone each month. Nowadays, most phone plans have either unlimited data or allocated amounts large enough that you rarely consider whether or not you’ll surpass your monthly limit. Internet data works the same way, but many activities that are done online use more data than sending a text. As such, it’s important to understand how much data your internet plan allows you to use. The plan you choose determines your data cap. Varying amounts of streaming, downloading, and browsing is available to users depending on their pay each month.  The amount of data you need depends on how much time you spend online and what you do. Simple tasks such as Google searches and sending emails take up a relatively small amount of data, while streaming movies and tv shows require much more data. See also: Best internet service provider 2021: Top expert picks If you aren’t careful about how much data you consume, you can very easily surpass your given limit, resulting in a higher monthly bill.  As such, it’s important to understand your household’s data needs and internet habits before you choose an internet data package.  See also: Best cheap internet provider 2021: Affordable ISPs Data caps put a limit on the amount of internet access users can have. For the most part, many normal activities such as shopping online and checking your email won’t cause you to exceed your limit, but it is important to understand your month-to-month data consumption. If you stream Netflix frequently, you may want to consider a larger cap.  If your family spends a lot of time on Netflix, checking social media, and playing video games, you may want an unlimited plan or a plan with a high data cap. If you have kids, your household is likely to use a lot more data during summer vacation. But in the winter, you may be able to get away with a much smaller plan. Be sure to research the options provided by your current internet service provider and its competitors to get an idea of your options and how much you can expect to spend. While the concept of data caps may seem complicated, in reality, you just need to be mindful of how much time you spend online and choose a plan that aligns with your usage. See also: How much internet speed do you really need?