A buyer’s choice of using cash or card can have an affect on their spending habits as well as their bank account.
Rebecca Moreno, sophomore criminal justice major, said the use of a debit or credit card is not appealing to her.
“I prefer cash because it is harder to give up your money if it is an actual paper, instead of just sliding a card,”
Moreno said she thinks she will spend more when using a card, while cash in her wallet rarely urges her to spend the money.
“Most people will prefer to use plastic,” said Dr. Stephen Christie, assistant professor of accounting and finance.
Christie said people might be more inclined toward using card over cash due to convenience. The use of a card is not only easier for the customer, but easier and quicker for the cashier because they do not have to figure out how much change to give back and spend time doing the extra work associated with using cash.
“The issue with using a card is that you don’t track your spending, and a study has shown you spend 20 percent more than if you were to use cash,” Christie said. “When people start to actually have to take money out of their wallet and give it to somebody, they tend to be much more conservative in how much they are going to spend and why.”
Christie said people using cash tend to limit what they are spending because it is all they physically have on them.
“While using a card may be easier, I would rather use cash because it allows me to keep track of my expenditures and deters me from spending more than expected,” said Joseph Corona, sophomore architecture major.
Even though Corona said he would probably not spend more with a card, he likes knowing how much is coming out of his pocket.
“The mindset is, ‘Yeah I can get that.’ There is nothing to hold you back when you use a card,” Christie said. “When you have cash, you have to count your cash, so let me make sure then that whatever I am going to buy I really need and want.”