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For many people, there is less pain associated with using a credit card to make purchases than to use cash, even if the amount of the payment is exactly the same. The use of the credit card almost feels like there is no payment, but the use of cash means that there is less cash available for other purchases. Therefore, spending decisions are made more carefully when using cash.
1. Describe your opinion on this topic. Do you feel less pain when using a credit card? Are your spending decisions made more carefully when you use cash as opposed to credit cards?
2. Read one practical article about how psychology affects the use of credit cards. You can easily retrieve possible articles by doing an online search using the terms "psychology" and "using credit cards." Summarize the main points of the article.
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