But I Can’t Feel Anything - Does Using Plastic Desensitize the Act of Spending Money
Last week I asked my mother to pick up some items from the grocery story for me because it would give me more time to have lunch with her instead of running errands. When I got to her house I realized I didn’t have any cash and said I would pay her later. She said, “That’s okay, I used my debit card, I didn’t feel anything.” Now knowing my mother, I easily translated this to: I went to the store in the ‘hood and paying more didn’t bother me because I used my debit card.
I was surprised she realized how easy it is to emotionally detach from how much we’re actually spending when we use a debit/credit card.
This is true of me as well. Very rarely do I use cash in my day to day purchases, sometimes it doesn’t register that I’ve just spent X amount of money when I’ve used my debit card. I can make purchases without ever having to physically touch money. I have my paycheck direct-deposited, I use my debit card for most purchases, I pay my bills on-line, I transfer money between accounts and even to other people. Spending money doesn’t seem real anymore. I just bought a new computer, if I had to put that same amount of money down on the counter to buy it, it probably would “sting” a little more. I ordered it online and all I had to do is key in a few numbers and wait.
A few times I went into the grocery store with just cash and I found myself thinking if I really needed an item or was there a cheaper alternative. When I use my debit card, shopping is almost an emotionless activity, I do buy a lot more stuff when I use plastic.
A few weeks ago I had $10 cash and I thought I was rich and wanted to get my car washed inside and out. However when I got to the car wash, I was presented with a few choices. I could spend $1.99 (I know, cheap car wash) for a car wash and an additional $1.00 if I vacuumed the inside myself or I could spend $8.00 for full service and have them clean the inside. When it came time to pay the man, with cash in my hand, I just couldn’t get the $8.00 wash, I chickened out and paid him $2.00 and cleaned the inside for $1.00 myself.
I know it’s not a lot of money for a car wash, but when I use cash my purchases are a little more selective and suddenly I don’t need stuff. Do you think using plastic encourages increased spending? Sure, we can only spend what cash we have, but it kind of makes you wonder just why life takes Visa.
I think plastic (credit or debit cards) definitely desensitizes us. Even though we know we have to pay the credit card bills later, or balance our bank account later, in the name of instant gratification, it’s easier to use plastic.
Cash is a lot harder to spend, especially if you have a big bill (like a $50). You don’t want to break it, because you know once you do, it will be gone.
Barbara Swafford’s last blog post..Can We Ever Know Too Much About SEO
I think we can safely say the cards are designed so we will spend more.
What you are saying makes be think about paying bills, in a round about sort of way. I used to hand real money over to a person at the post office. Now I press buttons on the telephone handset. While for me there is not any difference in how I feel about the money, I miss the personal touch of dealing with a person.
Cheers - Robin
Robin’s last blog post..How to be a Man and a Woman Both At The Same Time
I do find myself spending more when I use plastic. However, I don’t like keeping a lot of cash on me because I will end up spending all of it.
Urban Thought’s last blog post..My Life
Your right it doesn’t feel like actually spending money..I make an effort to pay cash..which believe it or not is inconvenient in a way
Robert Bourne’s last blog post..Once Found Once Cherished
I haven’t carried CASH on my person or in my purse for at least a YEAR.
meleah rebeccah’s last blog post..A Lesson In Geography. Or Something Like That
Of course credit cards encourage spending! It’s a form of financial enslavement, just like the banks.
I ran up two credit cards to a ridiculously high amount a few years ago. I finally retired the debt and vowed never to fall into that trap again. I still use credit cards, but much more sparingly and I ALWAYS make sure to pay them off in full each month.
It’s much better to use the government’s money instead of the other way around!
Cameron’s last blog post..Heat Wave
Good post. I definitely spend way more using credit cards than if I allotted myself a certain amount of cash each week. Sometimes I go to a nearby coffeeshop, intending to pay cash for a coffee and see a bunch of other stuff I want: out comes the card. So not only am I spending more, I’m eating more!
Even worse (for me) are Starbuck’s cards or other reloadable cards. I don’t know how many times I’ve said, “I’ll use my card. It’s not real money.”
JD at I Do Things’s last blog post..I Listen to Commercials so you don’t have to
It’s hard to part with cash, so its very rare for me to take money out; it ends up living in my wallet. As long as it’s in my wallet I know I’m okay - I have money, so what if I have a negative balance in my bank account, I have cash.
tondy’s last blog post..In the Cold I lay!
Plastic definitely desentizes us. There’s very little to no physical contact when it comes to parting with money, so its not as bad mentally. When you have cash in your hand, your limit is what you carry on you — not what you have in your bank. With that thought process in mind, you’re much less likely to go to the ATM to get more money than you are to keep spending when you have plastic (be it debit or credit) in your hand.
TOPolk’s last blog post..Souled Out: 5/19/08
Whenever I’m carrying hard cash, I suddenly don’t need a bunch of stuff either. But I am unaccustomed to carrying cash, although it is a habit I would like to get back into. I just LOVE how convenient the Debit Card is! One swipe and the purchase is mine.
An aside: I’ve noticed lately that a lot of places just slide your card and don’t require your signature anymore. With things being THAT quick and painless I definitely see people frequently overspending.
Jillian’s last blog post..A College Scholarship for the Average Joe
Barbara, cash is a lot harder to spend, although I manage to do it quite easily, the process is delayed and I start thinking…hmmm? A $50 bill, what’s that?
Robin, actually I LOVE the convenience of being able to pay bills online or not having to physically stand in line at the bank. It is rather impersonal though, you don’t have to leave home and you can still do everything you did before. I’m thinking of having my groceries delivered. Delivery charges saves me time, gas and aggravation.
Urban Thought, me too. I thought by not carrying cash I wouldn’t spend it, but every place you go takes your card now.
Robert, it doesn’t. Sometimes, I look back at my statement and wonder if I could have done without that purchase.
Meleah Rebeccah, wow. I hardly carry it myself. Once I considered asking a stranger on the street for $2.00 to buy a drink (I went out for a walk and had no money, but was thirsty, lol). Ain’t to proud to beg.
Cameron, it is. I’ve been there myself and I’m paying off my last debt, once I’m done,that is so IT for me. No more borrowing. Actually, if you do pay your bill off every month, using credit can work for you, but one slip up….
JD at I Do Things, you are so right, don’t those cards feel like free money. They’re actually kind of fun to spend.
Tondy, truth that…cash is hard to spend, but I can do it for sure….it does pinch you into reality though.
TOPolk…physical contact, well you can’t underestimate it. Agreed…cash in hand, not what’s in your bank. It’s easier to rob Peter to pay Paul based on what’s in your bank, rather than what’s in your hand.
Jillian, I know me too. Ask a kid to spend their own money for something they want. Suddenly, they don’t need it. When they are spending your money, the want to know is $300 a lot. Funny. I do keep cash in my wallet longer…my dead presidents usually put on sun glasses when I open my wallet….the light of day! lol
Oh yeah, I love the convenience too, it’s easy. Yep, no PIN number, no signature. Soon, no card. They’re trying to link your finger print to your accounts now, even eye scanning. We won’t need a card.
provocative- I’m stunned and amazed when I check my acct. debiting is sooo easy .. sk
sandy kessler’s last blog post..Bosom Buddies ?
“Ain’t to proud to beg.”
ha ha ha ha
Me either!
meleah rebeccah’s last blog post..A Lesson In Geography. Or Something Like That
I agree about paper vs. plastic, completely.
Lana’s last blog post..6 Unremarkable Things Meme
They’re trying to link your finger print to your accounts now, even eye scanning. We won’t need a card.
That sounds like something right out of Revelations…
Jillian’s last blog post..A College Scholarship for the Average Joe
Sandy me too. Sometimes, I don’t look at it on purpose. I used to check it everyday, now I can go a few days, easy. I don’t want to see.
Meleah, lol. Nope.
Lana, that reminds me to get my “green” bags. It is true. I have cash in my wallet that is very comfortable. I don’t need anything, surprise, surprise.
Yipper! It will be that easy one day Jillian.
It’s odd how plastic has altered our way of looking at cash and at spending. I am now mildly resentful if I want to pay for something and they DON’T take credit or debit cards! And then I know I’m being unreasonable .. but the fact is that people just don’t carry wads of cash around any more.
Jay’s last blog post..Are you a victim?
I totally identify with this. When I have to actually count out (and hand over) cash, I’m very aware of what I’m spending. When I use my debit card, it’s not as noticeable. Weird, huh? I obviously know I’m spending money… It’s just not as painful.
Corrina’s last blog post..Let’s Keep It Simple
This is so true…. When using plastic, it just feels you can buy almost anything without even feeling that there are consequences lurking somewhere popping sometime at near end of the month. When paying with cash, you think twice even before buying anything. You weigh your decision and reweigh it again… Plastic can sure help in complicating finances out.
zeniamai’s last blog post..Do you have everything?
jay, i do like the convenience of a debit card, i just don’t carry cash that often. it makes it so much easier to spend. i should leave them both at home!
corrina, agreed. me parting with money is like me trying to part the red sea, difficult…give me plastic though and i’ll charge right through.
zeniamai, i do think twice with cash and i still ask for something free. i’m thinking there are people in white coats doing studies on how we spend money and don’t be sad and shop with plastic…you’ll end up with a lien against your house.
Natural’s last blog post..I Think I Love My Car