The Psychology of Spending
Here is an article on the Psychology of Spending from MedicalNews. (Read the article and skip the intro here)
Article Introduction (Via MedNews)
There is fresh evidence that people spend less when paying cash than using credit, cash-equivalent scrip or gift certificates. They also spend less when they have to estimate expenses in detail. These findings appear in the September issue of the Journal of Experimental Psychology: Applied, published by the American Psychological Association.
Article Excerpts (Via Med News)
“cash discourages spending, and credit or gift cards encourage it”
“The authors also found that people who said they were more thoughtful in real life about amounts charged to credit spent less when using a fictitious card.”
“Thus, it appears that simple manipulations can alter spending behavior, and that consumer warnings about the deceptive ease of non-cash payments have merit.”