Consumers not only prefer to use cards when they spend, but they also tend to spend more money when they don’t have to pay with cash. What’s more, paying with cards has gained widespread acceptance across all age groups and regions, signifying a lasting shift in consumer behavior.
In general, using cards makes people less conscious of their spending.More than half of consumers surveyed in recent Forbes Advisor research said they are more likely to make impulse purchases when using cards, compared to less than a quarter who feel similarly when paying with cash.
This tendency extends to big-ticket purchases, though at a lesser scale. Some 22% of respondents expressed feeling less discomfort about spending a lot of money when using a card.Additionally, more than a quarter said that not handling physical cash makes it easier for them to spend money.
Not surprisingly, it’s the highest earners who are least likely to check their bank balance before they pull out their card. Nearly a third of those earning $150,001 to $200,000 said they rarely check their balance before making a major purchase, in contrast to 12% of those earning less than $50,000. Only 10% of baby boomers reported checking their balance before spending.