what financial instrument do you use for everyday purchases?

[terry1156]

I'm curious to see what the people that visit this site use for their everyday purchases and why they have chosen that method.

I use a credit card for virtually everything because of the cash back rewards and the protections it offers.

[sweeps]

Cc, Pif, Ftw.

[responduser]

I never use credit card and if needed, i would prefer to use my debit card rather than cc.

But always prefer cash purchase.

[disneysteve]

We use CC for virtually everything for the convenience, safety and rewards.

[simpleyme]

I just use cash for any small purchases ( any thing under 500 dollars) and other than bills and groceries .
I do not really spend on a daily bases

[fruitbowlk]

I use my debit card without pin number so that I can get my points. I'm saving up my points for an $100 GC to Great Wolf Lodge.

[boosami]

I use my credit card for almost everything, though I always carry cash for those annoying situations where cards are not accepted.

For very small purchases (under $10) I'll use cash because it's silly to charge such a small amount. Also, I'll use cash at a restaurant if I can leave the exact amount (including tip) and avoid having to wait for the waitress to bring cards/change back.

[glock35ipsc]

I use my debit card for everything, and anything under $3-$4 I'll use cash. I rarely carry cash on me though. I do keep a few dollar bills in my ash tray just in case I want something small.

[Joan.of.the.Arch]

We use CC for virtually everything for the convenience, safety and rewards.

--As do we. No matter how small, I will put it on CC. I always give tips in cash, though, for fear that waitstaff will not promptly get the full tip I want to leave them if it goes on the CC.

Sweeps, I cannot figure out "Ftw." What is that?

[disneysteve]

I always give tips in cash, though, for fear that waitstaff will not promptly get the full tip I want to leave them if it goes on the CC.

I guess that could be a problem, but that's between the staff and the management. I don't want to give up the reward points on that 20% of the bill. Quite a few times, I've paid the bill and while I was still standing there, the cashier took the cash for the tip amount out of the register after running my credit card with the tip amount included, so I'm not sure it is an issue worth worrying about.

[DebtFreeMe2]

Hello all,

My family and I use cash for almost everything. We actually take our cash out of the bank every payday and divide it up into each category that we have budgeted for, such as groceries, gas, etc.

We use checks to pay our regular bills such as electricity, sewer, etc.

All extra cash goes to our money market account for emergencies and saving.

As for credit cards and the desire to get points for this or that, those points aren't really free.

Many, many studies in financial psychology have shown that people will consistently spend more when using plastic as compared to using cash.

The credit card companies know these studies inside and out, that is why they have these "Reward" programs. This is also why stores love credit cards.

The reason people spend more this way is due to what is called mental accounting; this is where people divide up money into different pots in thier head.

For instance if someone is gambling and has set a $5 budget and they win $50, they are far more likely to continue to gamble the $50 rather then put $45 in their pocket and gamble the original $5, even though they would not have brought $50 of their own money to gamble, this is called using the houses money.

The concept that plays into credit cards is that people mentally separate a balance on their credit card from the money they have in their pocket or bank account, and thus are more apt to spend more on a credit card rather then their own cash.

Hope this is interesting and helpful for folks,

DebtFreeMe2

[Aleta]

I put as many bills that I normally would pay wth a check on my credit card. There are purchases that I know that I'm going to make anyway. As long as you pay your bill off that month - there's no problem. Also, when I make a purchase on credit; I have that money already in the bank account.

So, if I can make money on points, it's in my pocket. There are some who have a problem with their credit card and I can uderstand them not using it.

I actually use case, checks, credit card and a debit card for various reasons. Mostly out of convenience.

[Jazzmint98]

I use a CC for everyday purchases. Anything that can be paid on my CC each month goes on it. It is more convenient that way plus I earn rewards. I am not tempted to overspend when using a CC.

[maat55]

I'm swithing to CC for the rewards.

[paladin]

We pay for virtually everything with our rewards credit cards - so far this year we have 5 nights hotel and about $500.00 in rewards.