The 10 Jobs with the Fastest Pay Growth
Low-wage jobs saw a strong annual boost in pay.
College students are willing to pay more than double to go to a Celtics game if they’re using a credit card.
Why? We’re not sure, but it may be due to the fact that they don’t notice how much they’re spending.
Consumer spending research company ValuePenguin asked business students to bid on tickets to Celtics and Red Sox games to see how credit cards affected those bids…
And seeing a Red Sox game is apparently worth much less…
What is it about credit cards that are so enabling? ValuePenguin’s research provides several theories.
And when a credit card logo is present, research shows it affects our spending.
With one around, we’re willing to pay “an average of 10 percent more,” the study found.
“One possible explanation for this is that we are preconditioned to have positive associations with spending and credit cards,” ValuePenguin explains. “This makes sense when you consider that credit cards heavily market their rewards.”
However, cybercriminals use logos to trick people into phishing scams. It takes more than the right image to determine a financial institution’s legitimacy. Check out 5 credit card scams and how to avoid them for more.
And when we focus on what a product does, we’re not focusing on its costs…
The psychological effect hard money has on us doesn’t end there…
ValuePenguin says a concept called coupling presents another explanation.
When the things we buy are listed on a statement, “the individual transactions are perceived as smaller,” the study found. “For example, a $50 purchase on a $600 credit card statement does not seem as large as it does on its own.”
On top of that, there’s a significant delay between the moment we buy the thing and the moment we actually pay for it. Credit allows you to distance “the pain of spending money when you are weighing the benefits of a transaction,” ValuePenguin reports.
A third explanation might correlate to a concept called the “salience theory,” which examines how much we notice transactions.
According to ValuePenguin:
Whatever the reason, if you’re using credit more than cash, you’re at least technically more at risk of increasing your credit card debt. Paying your statements on time and in full will keep you from falling into a pit that’s hard to overcome.
Published by Debt.com, LLC Mobile users may also access the AMP Version: You Pay More Money When You Don’t Pay Attention - AMP.