Yet Another Cash vs Card Thread, Article from 2018

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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carofe
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Yet Another Cash vs Card Thread, Article from 2018

Post by carofe » Thu Mar 14, 2019 10:52 am

Article from 2018:
https://www.valuepenguin.com/credit-car ... ng-studies

I noticed something interesting that they said about their analysis of that report that says that there was no difference:
Of the studies that we surveyed, all but one reported increased spending when credit cards were used instead of cash. However, the findings of this study should be treated with caution, as the researchers used methods that specifically drew attention to the credit card versus cash decision. This increases the likelihood that the participants will be cognizant of their spending habits and therefore less likely to spend regardless of payment method. Furthermore, the timing of the research coincided with the Great Recession (2007‒2009), during which consumers might be wary of credit card spending.
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SlowMovingInvestor
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Re: Yet Another Cash vs Card Thread, Article from 2018

Post by SlowMovingInvestor » Thu Mar 14, 2019 11:05 am

I always thought these of cash vs card reports are irrelevant to specific individuals.

If someone knows (without any self deception) they wouldn't spend more when they have cards, why does it matter what 95% of other people do ?

deltaneutral83
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Re: Yet Another Cash vs Card Thread, Article from 2018

Post by deltaneutral83 » Thu Mar 14, 2019 11:25 am

SlowMovingInvestor wrote:
Thu Mar 14, 2019 11:05 am
I always thought these of cash vs card reports are irrelevant to specific individuals.

If someone knows (without any self deception) they wouldn't spend more when they have cards, why does it matter what 95% of other people do ?
because 95% of that other 95% think they are part of the 5% that don't spend any more or less just because of payment method. 88% of people think they are above average drivers. By default, 38% are wrong and half that 38% are very wrong.

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Re: Yet Another Cash vs Card Thread, Article from 2018

Post by Jack FFR1846 » Thu Mar 14, 2019 11:46 am

deltaneutral83 wrote:
Thu Mar 14, 2019 11:25 am
88% of people think they are above average drivers.
As a High Performance Driver School instructor who has taught hundreds of newbies, I can tell you that the number of above average drivers is closer to 0.8%. Over a dozen years, I remember specific students......one was a veteran ice racer.....another was a multi-time SCCA autocross champion and autocross instructor. Maybe 2 others who I'd throw into the "above average" pail. After the day of instruction, most were at least somewhat informed.
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LadyGeek
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Re: Yet Another Cash vs Card Thread, Article from 2018

Post by LadyGeek » Thu Mar 14, 2019 12:41 pm

This thread has run its course and is locked (not personal nor actionable). General comment threads are off topic in the forums with "Personal" in the title. See: A reminder that non-investing general comment threads are OT
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