April 3, 2023
The Wall Street Journal recently published an article featuring Nina Mazar, Professor of Marketing, discussing the importance of having cash accessible in your wallet.
Technology has been shrinking wallets for centuries. As phones take on the role of wallets, people are rethinking how much they still need to carry in cash, cards, and identification. In a typical week, four out of ten Americans do not use cash for their purchases. Several states, such as Arizona and Georgia, began allowing residents to upload their driver’s licenses or state ID cards to their Apple Wallets in 2021. There is a general trend toward minimalist wallets that contain just a few cards or attach to phones. Many Americans do carry around cash, on average of about $67. Mazar states,
“Paying cash might help curb overspending, however, since the emotional impact of spending bills is greater than paying with a phone or credit card.”
Most Americans have four credit cards, but financial advisers suggest carrying two to three cards at most.