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The psychology of spending – The daily blog of behavioral and cognitive economics

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The psychology of spending – The daily blog of behavioral and cognitive economics

When Do We Spend Less?

Yesterday, a front page WSJ article, detailed a “no-swipe November.” In debt, a man named Chase decided budgeting did not work but cash could. At Safeway, using cash, he was more aware of the $85 checkout. Visiting his parents in Texas, he had been able to buy a plane ticket with a credit card before November. Then, he could pay cash for the train to the airport and avoid a luggage fee by carrying his duffel onto the plane. To use cash from the airport to his home, he needed a taxi that took cash because he assumed Uber would not. (They do, but not late at night.) At the end of the month, he saved $1700. ….[READ]

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