The Powerful Psychology Behind Using Real Cash
Written by Michelle Selina Handling real cash profoundly influences spending behaviors. Unlike swipes or taps, physically handing over bills makes every purchase feel tangible, each envelope emptied, each note gone. This “pain of paying” builds awareness, helps control spending, and brings financial dignity, especially for those living paycheck to paycheck. The popular cash stuffing method, distributing cash into labeled envelopes, helps control impulsive expenses and hit savings targets. In the U.S., about 30% of Gen Z use cash stuffing, with 69% using more cash than a year ago Can Card Payments Offer the Same Control? While budgeting apps and card trackers help, they lack the physical restraint of cash. A 2024 University of Surrey study revealed that people spend up to 20% more when using cards due to the "invisible money" effect. However, hybrid approaches, like loading a prepaid card with a fixed amount, can mimic cash’s benefits. The Latest Trends in...