Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering

Do people tend to spend less when using cash than credit cards?
First, let me answer the question the best way I can: I don't know if there are any studies other than those that have already been mentioned. Now, let's talk about something more interesting: You don't need to base your behavior on any study, even if it is scientific. Let's pretend, for example, that we could find a scientifically valid study that shows that people spend 25% more when using a credit card than they do when spending cash.  This does not mean that if you use a credit card, you will spend 25% more.  All it means is that the average person spending with a credit card spends more than the average person paying cash.  But there are outliers.  There are plenty of people who are being frugal while using a credit card, and there are others who spend too much cash.  Everyone's situation is different.  The idea that you will automatically spend less by using cash would not be proven by such a study. When hearing any type of advice like this, you need to look at your own situation and see if it applies to your own life.  And that is what people are doing with the anecdotal comments.  Some say, "Yep, I spend too much if I use a card." Others say, "Actually, I find that when I have cash in my wallet, I spend it on junk."  And both are correct.  It doesn't matter what the study says the average person does, because you are not average. Now, let's say that you are a financial counselor who helps people work through disastrous financial messes.  Your client has $20,000 in credit card debt and is having trouble paying all his bills.  He doesn't have a budget and never uses cash.  Probably the best advice for this guy is to stop using his card and start paying cash.  It doesn't take a scientific study to see that this guy needs to change his behavior. For what it is worth, I keep a strict budget, keeping track of my spending on the computer.  The vast majority of my spending is electronic.  I find tracking my cash spending difficult, and sometimes I find that when I have cash in my wallet, it seems to disappear without a trace.  :)