Paying with cash hurts less for the younger generations

By annika [dot] persson [at] ses [dot] lu [dot] se (Annika Persson) - published 19 December 2024

Swedish krona bills. — Photo: Riksbanken.

Cash in an envelope is a traditional, appreciated Christmas gift to grand children and young relatives. But does it still feel like paying with real money?

Carin Rehncrona writes in The Conversation about the "pain of payment effect" and how we have shifted from thinking that cash is more painful to spend than digital money, to the opposite – that purchases with cash don't feel like they are part of your personal finances because the purchase is never visible among expenses and bank statements.

Read the entire text in The Conversation.