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Cash Amnesia

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Re: Cash Amnesia

#21

Post by Finnucane »

malfist wrote: post #2

This goes against everything I'm familiar with around budgeting. One of the big tricks to getting your budget in check is to pay cash so you can see the money leaving your wallet. Swiping a credit card makes that all invisible

I did this a long time ago, for a while I kept myself on a strict monthly cash budget to deal with some debts. In those days it was still relatively easy to get everything you needed locally for cash. It did mean that it didn't really matter that much what you were spending your money on, as long as the total didn't exceed the budget. You just had to be conscious of the choices. Even now, with the debts paid off I still live that way--I don't buy things unless I know I can pay for it, and I save some money every month. And I don't care that much about the details. I like spending cash just so I can forget about it. Do I really need an eternal record of that scone I bought on the way to work last week? I do not need that.

Re: Cash Amnesia

#22

Post by anamexis »

EGreg wrote: post #15

How quaint. Countries around the world are gradually phasing out cash, and forcing banks to report any transactions that add up to more than $600. They want the tax revenue and ultimate control — but they’ll claim it’s mostly to prevent “money laundering”. This is like analyzing the details of how people use vinyl records to play music. It won’t matter in 1-2 decades.

> This is like analyzing the details of how people use vinyl records to play music. It won’t matter in 1-2 decades.

Sounds like what people were saying about vinyl records 2 decades ago.

Re: Cash Amnesia

#23

Post by adastra22 »

mdp2021 wrote: post #20
hooverd wrote: post #5

Obviously you pay cash so it doesn't affect your social credit score. I always pay cash at the bar- it's an easy way to realize you're spending too much compared to just opening a tab. Plus you don't get stuck closing out if you wait too long.

"social credit score"?

[flagged]

Re: Cash Amnesia

#24

Post by TheRealPomax »

hunter2_ wrote: post #18

> “Certain products are more guilt-inducing because they feel more like impulsive purchases, like a foam hand for the sports game,” Huang says. “Some are more rational purchases, such as books or stationery products for class.” Sure enough, they found that customers were more likely to pay in cash for harder-to-justify items like stuffed plush mascots and Christmas ornaments. Or perhaps the group of people buying har…

When I first moved to North America, the idea that a credit card company was allowed to give people cash back, offer insurance, etc. for using their cards seemed like some bizarroworld "how is this legal" concept. Having lived here for decades, it still is. It's like an alcohol shop rewarding its most alcoholic customers by giving them free booze.

And then if you sign up for a new card, or you cancel a card, some random private company decides to rate you and then banks look at that private company's data to decide whether or not you're a good little consumer worthy of their business?

Credit cards might have been a reasonable idea, but give me direct, free, immediate digital banking and debit cards any day of the week please. The US went "what if we took the worst way to do banking, and made that the default?" and that's why banks don't even handle affordable EFTs themselves. It's the creditcard companies again.

Re: Cash Amnesia

#25

Post by ImPostingOnHN »

TheRealPomax wrote: post #24
hunter2_ wrote: post #18

> “Certain products are more guilt-inducing because they feel more like impulsive purchases, like a foam hand for the sports game,” Huang says. “Some are more rational purchases, such as books or stationery products for class.” Sure enough, they found that customers were more likely to pay in cash for harder-to-justify items like stuffed plush mascots and Christmas ornaments. Or perhaps the group of people buying har…

When I first moved to North America, the idea that a credit card company was allowed to give people cash back, offer insurance, etc. for using their cards seemed like some bizarroworld "how is this legal" concept. Having lived here for decades, it still is. It's like an alcohol shop rewarding its most alcoholic customers by giving them free booze. And then if you sign up for a new card, or you cancel a card, some ran…

I feel like it'd be totally normal for any restaurant or store to give a discount to its best customers

Re: Cash Amnesia

#26

Post by mdp2021 »

adastra22 wrote: post #23
mdp2021 wrote: post #20

Earlier quoted context omitted.

"social credit score"?

[flagged]

The poster wrote «of course» (taking something for granted) and «you», suggesting an universal context, valid for "everyone". Not just places in which the practice is established.

Re: Cash Amnesia

#27

Post by jjice »

hooverd wrote: post #5

Obviously you pay cash so it doesn't affect your social credit score. I always pay cash at the bar- it's an easy way to realize you're spending too much compared to just opening a tab. Plus you don't get stuck closing out if you wait too long.

Agreed. It's a good way to create a hard limit. It's also just a lot faster in a setting like that and I can just hand them the cash with tip included and leave, hard capping the drinks for the benefit of my wallet and my health.

Re: Cash Amnesia

#28

Post by MyNameIsRansom »

Lots of small businesses do "cash no tax". It's not forgotten when it's spent. I've fixed my car in cash (primarily to save on tax; and to not have it known by insurance). It's hard for one to "amnesia" $5000 in cash. It's a tool, just like a credit card.

Re: Cash Amnesia

#29

Post by wussboy »

malfist wrote: post #2

This goes against everything I'm familiar with around budgeting. One of the big tricks to getting your budget in check is to pay cash so you can see the money leaving your wallet. Swiping a credit card makes that all invisible

The research is on your side. Spending cash makes you spend less. Most respondents to your comment are making a category of error that is common in our Internet age: "I have more information, therefore I am making better decisions."

Re: Cash Amnesia

#30

Post by nfriedly »

TheRealPomax wrote: post #24
hunter2_ wrote: post #18

> “Certain products are more guilt-inducing because they feel more like impulsive purchases, like a foam hand for the sports game,” Huang says. “Some are more rational purchases, such as books or stationery products for class.” Sure enough, they found that customers were more likely to pay in cash for harder-to-justify items like stuffed plush mascots and Christmas ornaments. Or perhaps the group of people buying har…

When I first moved to North America, the idea that a credit card company was allowed to give people cash back, offer insurance, etc. for using their cards seemed like some bizarroworld "how is this legal" concept. Having lived here for decades, it still is. It's like an alcohol shop rewarding its most alcoholic customers by giving them free booze. And then if you sign up for a new card, or you cancel a card, some ran…

I've lived in the USA my whole life, and I still think it's bizarre and ought to be illegal. It's basically a bribe.

The worst part is, as long as it is legal, it just makes sense use it - because most things are the same price either way, so it's essentially a small discount on everything.

So, I simultaneously use it regularly and hope it becomes illegal.

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