There are so many great benefits and convenience of using your debit or credit card when making purchases. But are they right for everyone? Maybe not!
If you’re seeing overdraft fees or small purchase spending patterns adding up to big deficits to your monthly spending plan, you may consider the psychological spending benefits of using cash! We’re much less likely to overspend when using cash, so if better for you, make one weekly trip to the ATM once you’ve determined how much cash you’ll need for small purchases you’ve planned within your budget. With a finite amount of cash, you’ll start to think twice before those spur-of-the-moment spending sprees take another toll on your account balance.
Want to make it even more difficult to part with your cash? Carry crisp new bills! People prefer crisp new cash to wilted, dirty, old bills, so they’re more likely to readily part with the latter, according to a 2012 study in the Journal of Consumer Research. In studies, participants were willing to spend more money when they had old bills to hand out than when they had newer ones.