People Spend More With Plastic

Do you know why casinos use chips?

Experts tell us that casinos prefer chips over cash because chips add some mental separation between the gambler and his money. It’s a little easier for gamblers, to place big bets when using just chips. They know what the chips represent, but feel slightly less inhibited towards taking bigger risks. It’s a matter of psychology. Simply throw a chip down on the table. It doesn’t look like much. It’s just a lonely chip sitting there in the middle of green felt. Yet, all it takes is one second and the money’s gone. That’s just one of the reasons I don’t gamble.

The same principle applies when spending is done with plastic vs. cash. Multiple behavioral economics studies back up these assertions. Dun & Bradstreet found that people spend more when using credit cards instead of cash. MIT reported people spending up to 100% more using plastic.  According to a 2016 report from the Federal Reserve Bank of Boston, plastic transactions were 409% greater than those using cash. No wonder casinos use chips!

Here’s the bottom line. To spend less and save more, put away the plastic and start using cash. The envelope system is a perfect way to keep you on a budget and out of financial stress. Cash the money you need from your paycheck, put it in an envelope, and refuse to use plastic. Let’s manage money wisely knowing that it pleases the Lord when we are free from financial stress and worries.

And if you are struggling with credit card debt, Christian Credit Counselors are the go-to source for help. They can create a debt management plan specifically for you. For more information visit crown.org/ccc.