Trading something for nothing.
Today at the store my kiddos wanted to pick up a few extra treats and one toys. I explained that we were spending enough money already. I then threw in that if they wanted to give me the money or pay for it themselves they could get it. My oldest kids quickly put away what he wanted. He is saving for some special toy he wants to order.
My second kid just said that I could pay with the credit card and then it would not cost any of us any money. Well this led to me trying to explain to a 4 year old how a credit card worked.
After putting them to bed I started doing some credit card research and how it changes spending patterns. Long story short it might be time to chop up my credit cards.
I’m not really going to cut my credit cards. I like earning a few rewards and I’m pretty good and keeping them paid off. I’ve also had good luck with disputes when my card has been stolen. But I am tempted to trying using cash every now and then when buying things. Here are a few reasons why it might be a good idea to try using cash for a few days every now and then.
In a study my MIT spending with cash actually triggers some pain receptors in our brain. You work hard for you money so it’s hard to hand over. I’ve watched this play out in my kids. Thing are easy to want until they have to actually hand over the cash.
Guess what?? Using a piece of plastic causes most of us no pain. Because we hand over the plastic and get it right back. We get something and don’t have to give up anything at the time. We walk out of the store with our items and our precious little credit card.
Also, when you use cash you spend less. Some studies have show as much as 18% less than when you use a credit card. Just think that 18% could be going into crypto.
So this week I’m going to buy my groceries and other items not purchased online with cash. I hope I save a little money because I would love to pick up some more leo, hive, and ctp.
Have a good week all. Be smart with that money. It can be hard to keep around.
Posted Using LeoFinance Beta
Yay! 🤗
Your post has been boosted with Ecency Points.
Continue earning Points just by using https://ecency.com, every action is rewarded (being online, posting, commenting, reblog, vote and more).
Support Ecency, check our proposal:
Ecency: https://ecency.com/proposals/141
Hivesigner: Vote for Proposal
Hence the reason why my fellow Canadians have an average consumer debt of 125% over annual Income. The ease of Credit with the powerful Marketing algorithms and tools by advertisers make most people into Consumer zombies.
Posted Using LeoFinance Beta
US credit card debt passed 1 trillion in 2020 I believe. Sad times. Somethings got to change...
This actually plays out in a number of ways psychologically too and especially with regards to Crypto and other trading and in fact anything that doesn't involve cold hard cash!
Our brains are tricked into imagining there is no worth to crypto as its just numbers on a screen and even more so as it appears to us to be unrelated to actual finance. The same techniques are used by casinos, that's why we play with chips and not cash!
You were going to cut your cards up and then wrote down an good 'excuse' why you wouldn't and shouldn't!
Time for some serious brain training I think to keep us all disciplined!
Best wishes to you and your sensible offspring :-)
You don't have to use cash to pay, you can use a debit card and not go into credit.
The thing with credit cards is you have a safety blanket, you know you have that credit and the thought alone makes you spend more as you can afford it. When you don't have a credit, you only have your own money on the debit card, you spend less.
Cash has also some influence in spending. When you see your wallet getting thinner with every payment, you may reconsider your spending. You don't actually see your balance diminishing with cards. It's an interesting things but if you want to save, it's good to follow a few rules.
Posted Using LeoFinance Beta
I alway chop up my debit cards. Too hard to deal with banks when they get stolen. But you are right they are a good option. I’ve just had a hard time with them. Thanks for stopping by.
@dkid14 Great example of how social programming/engineering works. VISA/Mastercard et al and anyone extending credit have spent millions of dollars funding studies determining how our brains work. Your example was from MIT.
Social engineering at its finest. How do you enslave the masses without their realization of creating their own prison? I am referring to the interest debt associated with Credit Cards. How many of the world's population are living paycheck to paycheck?
What keeps the population in check? The credit report and that report is self-governing! Every time we check the accuracy of our report we are validating/verifying their information about us. Their cost? Zero, zilch, nada!
And we just gave away all of our updated financial information for FREE!
And the social engineering begins, habits, spending patterns, etc, etc. all sold to third party entities. Oh sure, we have an option to opt out! Really? Do we?
Dear @dkid14 spending saves, that is the paradigm of money, and cards make these operations larger. Good decision to invest savings in crytography.