For me I reckon it depends on denomination of money, and opp.cost of obtaining it. So coins are easily obtained, and even have a disutility assoc with keeping them (carrying lots of 20p coins is annoying)- so there's a want to get rid of them and spend it, and seen as low value
Some ppl say that they spend more with card or contactless bc doesn't feel like "real money". Opposite for me. Contactless sends me immediate notification deducting from balance. Cash makes wallet fat, or jiggles in pocket. Feels "spent" when I withdraw it. Want to get rid!
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So it's easier for me to spend 5 £1 coins rather than £5 by contactless due to disutility of coins. But easier to spend £20 by contactless than a £20 note as the note is harder to obtain and valued higher? Your opinions on this
@bswud? -
Coins are especially annoying, but more than the disutility it's the fact that the mental accounting is done at the level of bank balance so cash feels spent when I withdraw it not when I hand it over
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That's interesting. But surely contactless requires no mental accounting (as it is connected to your actual account with instant withdrawal), thus it makes spending a lot easier?
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It tells me it's deducted money from my account, immediately. I know exactly how much poorer I am when I spend money. With cash... Hard to say
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Nice. Interesting to hear different perspectives on what initially seemed like quite a simple topic!
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Same here. Once I’ve taken out a wedge it feels like “free money” when I spend it. Yet every tap I *feel* my balance deplete...
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Interestingly, folk behave/spend differently with credit balances (bank debit card) than with chargecards (e.g. Amex) which have to be settled in full at the end of the month. Even a four to five week credit line can increase spending habits. Strange.
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Meet homo economicus
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I agree. I rarely have my wallet out anymore. Just wish they’d up the limit to £100+ so that I could use ApplePay for almost everything.
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Agree about the feeling of loss occurring when you withdraw cash from atm. But for me this acted as a spending constraint, since I knew I would feel the loss and it takes time to get cash out of atm, whereas contactless doesn't have the faffing about.
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