Reptilian brain · Pricing & Behavioral Economics
Cashless Effect
People spend more with cards, wallets and stored value than with cash for the same purchase; the more abstract the money, the looser the hand.
An everyday example
Bidding up to twice as much for tickets when told payment would be by credit card.
What it can cost you
A permanent upward drift in spending as payment gets more invisible.
Warning signs
- I spend more when I tap.
- I could not say what I spent yesterday.
One thing to do
Use the most tangible payment form your discipline needs for the categories you overspend in.
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