Thursday, July 24, 2008

Psychology of spending using credit cards

I heard an interesting story on NPR the other day. According to the economics professor they were interviewing, people spend more when they make a purchase with a credit card than with cash. I can definately see how this happens, however, I find that cash burns a hole in my pocket and I can never seem to remember where it went.

One of the solutions for better management of your money that was mentioned on the program was to use your debit card instead of your credit card. That way you have to ensure that you have the money before you spend it. The program was really quick, 3 minutes and 20 seconds, so be sure and check it out yourself.

NPR Program: Why We Spend More Using Credit Versus Cash

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