Why do you feel bad about spending cash, but not about making online payments?

[Dogedegen]

It is all mental, when people spend physical Cash they feel tend to feel the value more because it's tangible but they actually spend more than that when making online transactions but they don't really take it as a big deal. The value of physical cash and money you spend doing online transactions are actually the same and personally I don't have such mindset. The reason why a lot of people think that tangible cash seems bigger is because they don't make use of it more often as the way they deal on online payments, this is what their brain has become adapted to.

The point of the study is to provide proof that you do have that mindset, everyone does because that is how human psychology works and responds to lower friction. You can't somehow be an exception to the rule fully you can just be affected a little bit less, the study shows that everyone is spending much more when they do online payments than they would if they only spent cash. I think people users should focus to learn lessons than finding ways to dismiss what is being taught by science.

I hardly keep cash in my possession not because I don't think it's easy to use or because I feel bad about spending it but personally it is more convenient for me to do digital transfers to making online payments than to carry Cash around. If you have a huge amount of money that you are planning on paying to someone probably based on a transaction there's no point in giving that person cash unless they specifically request for it due to some reasons that are best-known to them but this is the 21st century and transactions have been made a lot easier. You can only make of cash when you are making payments for things that are not too high in cost.

The point behind this topic is to show you that you are not supposed to be using digital transfers or online payments because it is a trick that works against you. Read the details of the studies and then compare that to what you are doing to realize that you must change and grow. You are spending more money for things that you don't need. Cash is the best solution after having Bitcoin. Card payments are the worst of all.

There's a sort of regret with most of our purchases. But if you're the type of person who feels no regret in that moment due to the happiness of what you do, that's better. But keep in mind, not all are like that, and I think each of us needs to learn from you on how it should satisfy each of us. Because even paying the bills and other obligations that we have feels like there's a bit of regret. I know that it's a responsibility but, I think that most breadwinners feel that way whenever they have done something good and paid for their family.

I don't agree that making these kinds of claims for everyone is correct, even more because you are talking about an incorrect position. There should not be any kind of regret when the purchase is an excellent one that makes sense and provides a lot of value or utility. It is also strange to feel regret for paying the bills because you are living through this so you get a lot of utility for the money that you are spending, like the electricity or internet bill or the food that you are consuming. You should think how you approach those topics because living with so much regret is not so good.

[Taricoins]

It depends on the person, I understand your point because cash expenses are physical or material reduction while online payments seems seemless but the reverse is for me, maybe my brain is faulty but I despise making payment online, overall I despise seeing my balance reduce. But with cash I often feel the line between balance and expenses is blurred so I spend cash more comfortable than online payments. Plus those little bank deductions from transfers are annoying.

[BlackHatCoiner]

Makes sense. When you hold your card on an NFC device, whether you're paying 1 EUR or 1000 EUR, the movement and the act are exactly the same. But when you pay 1 EUR and 1000 EUR in cash, there's massive psychological difference.

A theory that is not yet researched by MIT: When you pay in BTC it's both worse than cash and credit card! 

[Su-asa]

Makes sense. When you hold your card on an NFC device, whether you're paying 1 EUR or 1000 EUR, the movement and the act are exactly the same. But when you pay 1 EUR and 1000 EUR in cash, there's massive psychological difference.

A theory that is not yet researched by MIT: When you pay in BTC it's both worse than cash and credit card! 

Because of modern technology, many have underestimated the value of little money, and because technology has made things easier and faster for everyone who adopts it, it has also changed our ways of thinking in many ways, and it has also made us not think much when spending a small amount of money on most things like Netflix, YouTube Premium, PlayStation Plus, Fitness apps, iCloud+, and so on.

But funny enough, there are still some individuals who prefer to spend cash rather than use digital payments, because they feel that using cash helps them save up their digital currency, and at the same time, such people hardly subscribe to premium services. So just as most people feel when spending cash, some feel the same way whenever they spend money directly from their account.

[liuka]

In my area, online payments may still be difficult to find because we live in a remote area, So Fiat payments are always the preferred method for everyday shopping.

But when shopping Online, We can pay with digital currencies and other methods, making it quite convenient.

Whether it's economical or wasteful, I think online shopping is more wasteful because we add items to our cart without realizing it, we've already purchased 10 items that we probably don't really need.

[bhadz]

There's a sort of regret with most of our purchases. But if you're the type of person who feels no regret in that moment due to the happiness of what you do, that's better. But keep in mind, not all are like that, and I think each of us needs to learn from you on how it should satisfy each of us. Because even paying the bills and other obligations that we have feels like there's a bit of regret. I know that it's a responsibility but, I think that most breadwinners feel that way whenever they have done something good and paid for their family.

I don't agree that making these kinds of claims for everyone is correct, even more because you are talking about an incorrect position. There should not be any kind of regret when the purchase is an excellent one that makes sense and provides a lot of value or utility. It is also strange to feel regret for paying the bills because you are living through this so you get a lot of utility for the money that you are spending, like the electricity or internet bill or the food that you are consuming. You should think how you approach those topics because living with so much regret is not so good.

That means, sort of, I'm speaking for myself and it's okay to disagree if you don't feel that way because I am not speaking for everyone. There's a  deeper meaning in my situation about the bills and I don't have to elaborate on that because it is how I feel and it just keeps on rising when a couple of years ago it wasn't too high. I agree that we consume these things and there should be no regret at all. I'm grateful that I am able to pay with all of it at the right time but, we are humans, we've got feelings and sometimes they're not right and we simply just express it.

[eightdots]

In my area, online payments may still be difficult to find because we live in a remote area, So Fiat payments are always the preferred method for everyday shopping.

But when shopping Online, We can pay with digital currencies and other methods, making it quite convenient.

Whether it's economical or wasteful, I think online shopping is more wasteful because we add items to our cart without realizing it, we've already purchased 10 items that we probably don't really need.

The ease of shopping leads you to purchase items you do not actually need. With online shopping, a vast array of options is instantly accessible, and most websites are designed to cater to consumer needs; consequently, they encourage you to buy more products.

People tend to pay closer attention to their spending when using cash. While this appears to be a financially prudent approach, online shopping remains the preferred choice because of the ease with which a wide range of products can be accessed.

[Roseline492]

In my area, online payments may still be difficult to find because we live in a remote area, So Fiat payments are always the preferred method for everyday shopping.

But when shopping Online, We can pay with digital currencies and other methods, making it quite convenient.

Whether it's economical or wasteful, I think online shopping is more wasteful because we add items to our cart without realizing it, we've already purchased 10 items that we probably don't really need.

That's also how it is in some of the places in my country, there are some parts that you wouldn't have to worry about the means of payment to use because they will accept both online payment and physical payment but however there are also some places were you could not use online payment because they're not use to it so that's why we usually have some physical cash with us all the time, so actually is the environment that determines how we spend between online payment and cash. Although the term wasteful in an online shopping actually depends on the discipline of the person because to me is actually not wasteful and I don't remember the last time I shop unnecessary items or even add it on my shopping cart.
 

[terrific]

Whether it's economical or wasteful, I think online shopping is more wasteful because we add items to our cart without realizing it, we've already purchased 10 items that we probably don't really need.

That's actually the purpose of it, to make consumers consume and buy more.
It's not wasteful per se just because we add to cart items that we don't need.
What you have said is the point of being an impulse buyer, you only realize that you don't need the item when it's already paid and it has been delivered to you.
I don't see it that it's within the system of the online payment, the problem lies into the person who buys unnecessary things because they can afford to.

[SPIDERMAN008]

It depends on the person, I understand your point because cash expenses are physical or material reduction while online payments seems seemless but the reverse is for me, maybe my brain is faulty but I despise making payment online, overall I despise seeing my balance reduce. But with cash I often feel the line between balance and expenses is blurred so I spend cash more comfortable than online payments. Plus those little bank deductions from transfers are annoying.

The world is now moving towards digital payment systems. Now any payment is done online. So, just as you feel when making a cash payment, you will also feel the same when making an online payment. Because now, like you, everyone gets mentally upset if they don't see a lot of money in their account. But it may vary according to personal feelings. However, through online payment, a person can easily understand where their entire monthly expenses are. But in the case of cash, it becomes difficult to keep track of small amount transactions. As a result, I will put digital payment in a somewhat advantageous position to reduce waste in expenses. Personally, I feel bad whenever I spend unnecessary  money whether it through digital payment or cash payment. If you maintain your financial activities responsibly, you can reduce your unnecessary expenses though you follow any payment method.

[Shinpako09]

Now that you say it, I just realized I'm spending more online compared to when I'm holding cash. I'm more reserved with cash, even if the stuff, food, etc. is cheap. I don't feel like spending that much. But when I'm buying online, I can spend on even more expensive things without caring that much. Even buying things that I just want but don't need.

For sure there is some psychological explanation for this. I'll search about this later.

[Emitdama]

Spending money on something satisfactory is never a regret to me, it's more like feeding my cravings so I would not really categorize it as a loss. The use of online payments are literally the best and relieves a lot of stress, because cash is not always available as one would need to visit the bank or a withdrawal outlet to have cash, compared to online payments that could be made from the comfort of your home. The most comfortable means is making more money, because expenses cannot be avoided.

There's a sort of regret with most of our purchases. But if you're the type of person who feels no regret in that moment due to the happiness of what you do, that's better. But keep in mind, not all are like that, and I think each of us needs to learn from you on how it should satisfy each of us. Because even paying the bills and other obligations that we have feels like there's a bit of regret. I know that it's a responsibility but, I think that most breadwinners feel that way whenever they have done something good and paid for their family.

For breadwinners, they do not have any other option but to fulfil their family's demand. They will have to spend money even if they do not feel like. In most cases, breadwinners will anyhow provide for their family without giving it a second thought. That is the love we have for our family which comes before that satisfaction of saving some money. All we want is for our family to be happy and we would do whatever possible to do so. For those people for whom family comes first, they would never have any second thought about money.

But for others, mostly bachelors, I think they are a bit hesitant when it comes to spending money. Not on parties and stuff but when it comes to paying their bills, they would run away from it and keep piling the bills. Such people have a long way to go ahead and they will get the learning along the way.

[pusaka]

Now that you say it, I just realized I'm spending more online compared to when I'm holding cash. I'm more reserved with cash, even if the stuff, food, etc. is cheap. I don't feel like spending that much. But when I'm buying online, I can spend on even more expensive things without caring that much. Even buying things that I just want but don't need.

For sure there is some psychological explanation for this. I'll search about this later.

Yes, I myself feel it, I will even be very detailed when holding cash, I always count my expenses every day, but if the money is in the form of non-cash, I don't care how much money I spend on that day, even I don't realize what I have bought because at the end of the month my balance dropped dramatically.

I think this happens because our sense of belonging is higher for something that is physical, while that which is non-physical we don't really care. Though logically it is the same money, but either we treat it differently.

[Muba20]

It depends on the person, I understand your point because cash expenses are physical or material reduction while online payments seems seemless but the reverse is for me, maybe my brain is faulty but I despise making payment online, overall I despise seeing my balance reduce. But with cash I often feel the line between balance and expenses is blurred so I spend cash more comfortable than online payments. Plus those little bank deductions from transfers are annoying.

The world is now moving towards digital payment systems. Now any payment is done online. So, just as you feel when making a cash payment, you will also feel the same when making an online payment. Because now, like you, everyone gets mentally upset if they don't see a lot of money in their account. But it may vary according to personal feelings. However, through online payment, a person can easily understand where their entire monthly expenses are. But in the case of cash, it becomes difficult to keep track of small amount transactions. As a result, I will put digital payment in a somewhat advantageous position to reduce waste in expenses. Personally, I feel bad whenever I spend unnecessary  money whether it through digital payment or cash payment. If you maintain your financial activities responsibly, you can reduce your unnecessary expenses though you follow any payment method.

Whatever the means of spending, online or paper currency, both are the same for me, but I must admit that many people may not give that currency much importance when making online payments, especially those with a higher income. When it comes to online transfers, the pressure it puts on people's brains is slightly higher than in paper currency. And a big example of this is that when I use a credit card, it seems very easy for me to spend money. But if I tried to do it with cash, there would be some psychological barrier. The situation will not be the same for everyone. In this age of technology, everyone's humanity has to change. Since online payments are now the easiest compared to purchasing goods, So it's best to adapt the mindset to it.

[hafiztalha]

The key is how you resist the urge to buy something you don’t need. I’ve personally done this many times, digital payments do make things easier, but on the other hand, they can backfire if you can’t control yourself.

Perhaps one of my biggest expenses is online shopping. At first, i only intended to buy a few necessities, since the prices there are cheaper. But often, Without realizing it, In the end, i ended up buying other things i didn’t need just because i wanted them, not because i needed them. It’s different when making a purchase in person with cash, i really feel the weight of parting with it, even counting it over and over before paying, that’s the reality.

In my opinion, it is the payment method that is causing people to overspend. The main reason is that people do not have a clear budget and they do not have any discipline that they can follow.  The person who is not disciplined enough and does not have financial knowledge. They keep on withdrawing money without actually tracking where it goes.

If you properly use online spending methods, it gives you more control over your money for example, you have transaction history, you can set spending limits and there are budgeting apps that continuously show you how much money you have spent. People are smart they use digital methods to control their money as they are free to use. Instead of talking about the method, I think the better way is financial discipline that matters the most.

[Rengga Jati]

Now that you say it, I just realized I'm spending more online compared to when I'm holding cash. I'm more reserved with cash, even if the stuff, food, etc. is cheap. I don't feel like spending that much. But when I'm buying online, I can spend on even more expensive things without caring that much. Even buying things that I just want but don't need.

For sure there is some psychological explanation for this. I'll search about this later.

It really is true. It feels quite heavy to part with cash when buying something. It feels different when paying online. The psychological impact is genuinely distinct. I also experienced this myself.

Put simply, when we pay with cash, we see the money in our wallet decrease right then and there. We are immediately parting with something tangible we are holding in our hands.

But, when we pay online, we are dealing only with numbers. We rarely check our expenses and remaining balance immediately after making a payment. That’s why online shopping and cashless payments don't really feel like spending money. To us, it might just sound like a "ching" notification, and then we forget about it. 

[Cryptmuster]

In my area, online payments may still be difficult to find because we live in a remote area, So Fiat payments are always the preferred method for everyday shopping.

But when shopping Online, We can pay with digital currencies and other methods, making it quite convenient.

Whether it's economical or wasteful, I think online shopping is more wasteful because we add items to our cart without realizing it, we've already purchased 10 items that we probably don't really need.

I think it depends on the individual, for me,there isn't much difference between spending cash and making online payments, I remain frugal in either case, and I’ve always been that way when it comes to money. However looking at the average user, many say that spending with a card is much easier because there is no tangible moment of parting with the cash, that instant when you physically hand the money over to the seller.

[Don Pedro Dinero]

I think it depends on the individual, for me,there isn't much difference between spending cash and making online payments, I remain frugal in either case, and I’ve always been that way when it comes to money. However looking at the average user, many say that spending with a card is much easier because there is no tangible moment of parting with the cash, that instant when you physically hand the money over to the seller.

You must be the exception, then. I’d say I behave that way too, as I’ve been aware of what the OP is saying for a long time, and, for example, when I go to the supermarket I take a list of what I’m going to buy, and I buy the same things whether I pay in cash or by card. But it’s clear that, for the majority of the population, the ease of paying by mobile or on sites like Amazon works out very profitably for companies because people end up spending more.

[DrBeer]

It’s extremely simple - you pay with cash, counting it out of your wallet, and watch as the amount dwindles right before your eyes It’s not the most pleasant moment in your life. But when you pay with a card, you don’t see your money "melting away", so any payment by card or online seems "less costly" than counting out bills by hand

[Bright0515]

I used to have this feeling like I'm overspending when I'm handing over an extremely huge amount of money to someone but when I make an online transaction of the amount of that same value I feel comfortable with, it is just a psychological thing and it can be outgrown when you start getting used to spending cash. What I do now is that I take out cash and reserve some in my bank account just in case I need to make any transactions online, I trained myself to spend physical cash so I would not always feel guilty when when making use of it. People only feel bad because they are not used to spending cash.