According to a new study to be published in the Journal of Consumer Research, people are less likely to spend cash if they are carrying around larger denominations. Researchers took a pool of students and gave half of them four quarters and the other half a dollar bill, and told them to either keep the cash or buy candy. Only 26% of the students with the dollar bill bought anything, while 63% of the students with the quarters spent it.
Researchers say you can use this concept to trick yourself into spending less by carrying around $100 bills instead of twenties. Why? A $100 bill seems more like big bucks than five $20s. Once you break a $100, you fear you won't be able to stop spending the change, so you hold on to it for longer. I can totally see this working for me – what about you?