Why We Spend Coins Faster Than Bills

[jeffrey]

As the recession deepened, Rick Alfaro of Sacramento noticed that more people were using coins in his office vending machine — and clogging it up.

Alfaro's theory was that people were feeling pinched and that using coins, as opposed to dollar bills, made them feel they were spending less. He asked the worker who stocks the machine, and the answer came back that he was right. People are "kind of scrimping a little bit and digging in their car" for loose change, Alfaro says...

Why We Spend Coins Faster Than Bills : NPR

[naturalwoman]

makes sense to me. change is almost like "free money". i went to the vending machine today and chose coins over the dollar bill i have in my pocketbook.

[disneysteve]

I disagree. I never, ever spend change. Of course, I hardly ever have change since I charge everything, but when I do spend cash, any change just gets put in a bank on my dresser and maybe once a year or less, I take it over to the bank to cash it in. Carrying change is too much of a pain. That's one reason why I hope they never eliminate the dollar bill.

[GREENBACK]

Originally Posted by disneysteve

I disagree. I never, ever spend change. Of course, I hardly ever have change since I charge everything, but when I do spend cash, any change just gets put in a bank on my dresser and maybe once a year or less, I take it over to the bank to cash it in. Carrying change is too much of a pain. That's one reason why I hope they never eliminate the dollar bill.

I've done the exact same thing DS since high school years. I used to spend only cash and the coinage added up quick in my "piggie bank". I enjoy rolling coins (even pennies) and seeing how much I've managed to save or accumulate when my can is full so it's fun for me to save change though I don't have nearly as much anymore because of charging most things.

[Ima saver]

I save all my change too. I cash it in about every two months and add it to my challenge money.

[kork13]

Agreed.... I never use change, much to my own disadvantage. I carry a wallet around, not a bag of change. Coins are aggravating to bother with, and unless I intentionally plan to have some of my coins with me to use for a specific purpose, I'll never use them.

However, I do agree with the idea that spending cash in general (coins/bills) feels less like I'm actually spending my money. I do everything with my CC and checking account, so once I withdraw cash, I see it leave my checking, and in my mind, it's gone. I don't really mess with, or care, how the cash gets used, because in my mind, I've already spent it. It's a terribly un-frugal way of thinking, but thankfully I only get $20-$40 per month in cash from the ATM... Otherwise, I think I'd be screwed.

[GREENBACK]

Originally Posted by kork13

However, I do agree with the idea that spending cash in general (coins/bills) feels less like I'm actually spending my money.

I used to only use cash. To me it felt much different than buying on credit. There was a real feeling for what you were spending. I actually had a much greater appreciation for money when spending actual dollars. I'm a little older now and can distinguish between the cash/credit thing but for young folks it probably is good to have the "painful" feeling of peeling off a few c notes versus the comfort of using a CC. There's a definite psychology here that affects us all differently and I've had the life experiences to know how to handle things but many do not have a handle on these concepts.

I find it interesting that you think it's less like spending money when you use actual cash. My view is completely opposite. If it weren't for the convienence, rewards, etc. of CC's I might still buy with cash and I do think that young people entering the world of financial responsibility should learn(thoroughly) how to handle cash. To me it's like the difference between learning math with your fingers or learning it on a calculator.

[disneysteve]

Originally Posted by GREENBACK

I find it interesting that you think it's less like spending money when you use actual cash. My view is completely opposite. If it weren't for the convienence, rewards, etc. of CC's I might still buy with cash

I'm with kork13. When I use a CC, I know that there will be a bill to pay within the month. When I spend cash, the transaction is done and there is no "later" to worry about. I can track my spending much better with a CC than I can with cash.

And, as you mentioned, there is the convenience factor. Spending cash, I end up with a pocket full of change (the topic of this thread) which is a pain to deal with. Plus, what might have started out as a few $20 bills in my wallet ends up being a bunch of $1s, $5s and $10s, taking up more space and harder to keep track of.

[kork13]

Originally Posted by GREENBACK

I find it interesting that you think it's less like spending money when you use actual cash. My view is completely opposite.

I know, my way of thinking is very different from what most would say.... I think that partly, it's that most of the cash I use is in the form of small bills (20's or lower), and rarely more than that $20 at a time. Normally I only use cash for a meal out, a haircut, repaying a few bucks borrowed from a friend (probably because he took my share of the check because I didn't have any cash at the time), or something along similar lines.

For any sort of larger purchase (even most of my small purchases), I almost always use the CC or a check. I think that if I did for some reason have to use cash to pay my rent or go food shopping, it might be a different story.

[disneysteve]

The only time I routinely use cash is at the casino. I'm not handing over my credit card at the blackjack table and I can't swipe it in a slot machine.

[GREENBACK]

To be clear. Most of my spending is on credit for reasons mentioned. I kind of have a $5 dollar rule on cash purchases for no reason in particular and that's when I use the CC. I too hate the bother of dealing with cash and coins but my point is that for me it was always more realistic to pay in cash versus a CC. I think this must be taught to kids. I agree with you guys on the CC thing and operate similarly. As to the original theme; I actually break bills even if I have the change so I can put it in my can

Yeah, DS no CC's for anything casino/gambling related...lol.

[GirlyChick]

I never spend coins. Plastic is the way things are these days...

[PrincessPerky]

When I was beyond broke (living in my car) I used coins, anything that would work to buy food I used.

Now, I really haven't been that broke since, oh sure I might be low on cash, but I have a full fridge/pantry.

Coins are for the kids dues at scouts, and the like, bills I spend like water in my pocket (thought they stay out of sight out of mind aplenty)

So I am with Kork, cash is not 'real' money, it comes as gifts and as such never enters the budget (nor do I feel the pinch as I spend it)

[Broken Arrow]

You know, I don't think SAers are a typical representation of the general populace when it comes to financial matters. Specifically, I think plastic is a better medium for those who areable to keep track of it. For those who don't or can't, cash works better since the balance is always right in front of your face.

[disneysteve]

Originally Posted by Broken Arrow

You know, I don't think SAers are a typical representation of the general populace when it comes to financial matters.

I resemble that remark.

I think you're right, though, and we sometimes forget that when we are discussing stories in the news about the "average" American's financial habits. We here at SA are not the avereage Americans.

[GREENBACK]

The country will be greater when "we here" do become avg. americans. That process may involve a little pain but we all will benefit.

[simpleyme]

I use cash for all small purchases (anything under 500 ) I just use cc for travel

Its kinda weird but I do not get much change I only shop once aweek and we eat at home and most of the time so maybe 6 dollars a month at most

the store I work at has been getting change like crazy ,people are digging into their change jars

[GrimJack]

Originally Posted by PrincessPerky

When I was beyond broke (living in my car) I used coins, anything that would work to buy food I used.

Now, I really haven't been that broke since, oh sure I might be low on cash, but I have a full fridge/pantry.

Coins are for the kids dues at scouts, and the like, bills I spend like water in my pocket (thought they stay out of sight out of mind aplenty)

So I am with Kork, cash is not 'real' money, it comes as gifts and as such never enters the budget (nor do I feel the pinch as I spend it)

Same with me - when I was really down and out with medical problems, I got one check a month - I never spent change, I threw it on a jar. By the end of the month, i was spending the change.

I still never spend change; I bought one of those cheap sorter/roller machines and just drop my change into it. When I have a roll, I put it in a bag and eventually take it to the bank.

b-t-b - the mint has cut coin production by 75% as the economy is so bad that all those coins that everyone was tossing into a jar are suddenly flooding the market-place so the mint does not need to produce as many this year.