Connect with us


Beware!! E- Money is making you spend more

Have you ever experienced that when you pay through your debit or credit cards or through any digital mode , you end up putting more of products in your cart ,but like unusual, you end up clicking that ‘confirm order ’ ,with that huge bill attached . Why does this happen. Studies show that when you spend our e- money, you spend more. IT’S PROVEN.

Not only this, but even when you buy through online platforms [sites], the reaction still remains the same.

Now, you can relate ,right? Read this article full to know why this happens and how you can protect yourself from this.

What is the psychology behind it?

People are willing to spend as much as 83% [in some cases], when they are paying with a credit card, rather than hard cash. Though there are many benefits attached to using credit cards, but, no one explains this increase in willingness to pay.

Do not fall in the trap of businesses. They are providing you liquid cash, which is available 24 x7, but, makes you end up paying a lot more than expected. The instant loan [limit] that you get while using your credit card ,works on your mind and makes you spend more. Spending on a credit card clearly has effects on how people spend, which numerous studies have borne out. However, it’s also been shown that credit card bills, when they arrive, cause enormous pain for the receiver. So much so, in fact, behavioral economist believes this explains the continuing popularity of debit cards. Not only credit cards, but there are a lot of options of using e- money like e -wallets [ paypal, paytm, googlepay are some of the examples] . With credit cards, you do not get instant feedback /updates, but with e wallets and debit cards, you get notified of the deducted amount immediately. You’ll be spending more, if you lose feedback. Now, even these platforms are giving enormous benefits, so people are shifting to these as well.

This does not stop here, if you stop using e money. But, online shopping has similar effects on an individual. Pricing instruments like ‘bundling ’ which includes ‘freebies ’ , which is the bait that companies give you ,which makes you put that unnecessary item in your cart , just because it has some free gift attached to it , that you think , may use somewhere later on , but ends up getting dust in some corner of your cupboard . This can take away some of the ‘’Moral Tax‘’. Prepayment or EMI is another method , in which one gets on financial advantage , rather , at times , things costs even more than the MRP , but people go for these options because they find it easier in short term payments .

It’s better for economies, in a sense; it proves to be beneficial, if people spend their cash more freely, as this will generate cash flow in the economy .And, many governments around the world are encouraging this. Old English saying ‘Money, like manure, does no good till it is spread’ fits well.

But this free, open- handed spending can put you at unease.
People say that this cashless system is quite seamless and convenient but, it’s like giving a world where you can get all the benefits of spending only, without feeling the pain of paying, without instant realization of losing your money.

There are psychological reasons behind this is really very simple- The pain of separation with our money can keep us from overspending, but the negative aspect is that it can rob us some of the unnecessary joy that we get while consuming[shopping] .

How can one protect them from this?

One simple trick is enough, go on shopping with ‘hard cash ‘, and avoid online shopping, and see your savings increasing. Having a grip and control on spending habits goes a long way and can help you at times you cannot even imagine.

HIYA ANEJA, Lifestyle Content Creator.


Continue Reading


Covid-19 Updates (India)

25 Jan 2021, 11:30 AM (GMT)

Coronavirus Stats

10,668,674 Total Cases
153,508 Death Cases
10,330,084 Recovered Cases




Subscribe to our newsletter

Please wait...
Want to be notified when our article is published? Enter your email address and name below to be the first to know.


Total Users : 341922
Views Today : 13979
Total views : 2194972

Copyright © 2020 JK Media. Powered by Rodiex