Wednesday, December 10, 2008

Paper or Plastic?

"Studies show that we spend more using plastic rather than cash." Have you ever heard that statement? I have and each time the point remains the same but the statistics change (i.e. 18% more, 32% more, etc). The primary explanation is that there is no immediate emotional connection with using plastic like there is with cash. Honestly I'm not sure if the statistics are accurate or even true because I know people who swear they spend more using cash and I know others who swear they spend more on plastic?

As for me, it really depends on what I'm buying and where I'm shopping. At the grocery store I absolutely, positively must use cash if I'm going to stay on budget. Every single dag-blastic time I use my debit card, I over spend. The other sore area for me is restaurant eating. Hmm, are seeing a theme here? Food apparently gets me into trouble (hey, what can I say, a girl loves to eat:-). I cannot think of any other area where I have to be that adamant about using cash. Actually most of my transactions are either online bill pay or cash. I do use my debit card but I primarily use cash. Over the years I have become more disciplined with my spending. Excluding the aforementioned exceptions , I do pretty good either way, paper or plastic.

How about you? Do you tend to spend more when you use plastic versus cash?

5 comments:

Sharon Rose said...

Hi there-Now I've cut up the credit cards, I only have my debit card cash card from my savings account. I try to use cash for most things now if I want something that bad and I use my debit card for online grocery shopping now.

Sandy said...

I am doing my best not to use my debit card. It's hard to stop! You are right, you spend more using plastic.

MoneyStand said...

Hi,
I prefer to use cash as when you pay with a credit or debit card you don't feel so much emotional attachment as you do when holding some nice crisp notes, parting with actual cash is a lot harder to take as you can see the money in your hand telling you to not let go lol

Ms. MoneyChat said...

Sharon-Rose, Sandy & Money Stand: I too use cash for most items. It seems like I mostly use my debit card at the gas pumps. Some argue just the opposite. Hey, whatever method keeps you from overspending, do it! ;-)

jpkittie said...

the only way to go for me is cash - always