When you use cash, how much less money do you tend to spend?

Using cash instead of credit or debit cards can have a significant impact on spending behaviors. Research and studies indicate that when people pay with cash, they are more aware of their expenditures and often spend less overall. The range of 12%-18% reflects a common finding in behavioral economics, highlighting that the physical act of handing over cash makes spending feel more tangible and painful compared to swiping a card.

Cash transactions create a direct and immediate connection to the money leaving your wallet, leading to more mindful spending decisions. This tendency to spend less when using cash can be attributed to the psychological effects of seeing physical money change hands, which typically fosters a greater sense of financial responsibility and control over one's budget. Therefore, the correct answer underscores the substantial influence that payment methods have on consumer habits, with a notable decrease in spending found in the reported range.