Looking for a life makeover? Grab an issue of the January-February 2016 issue of Good Housekeeping Philippines for tips on how to eat well, become physically and financially fit, and take chances on love again, beginning with the cover story of Heart Evangelista.

Grab a copy now!

Good Housekeeping
Charlene J. Owen, Staff Writer
November 26, 2012

How Your Money Looks May Affect Your Spending Habits

The way you treat your crumpled or crispy bills may actually dictate your financial behavior. By Charlene J. Owen

Appearances matter--even with money.

A recent study posted on ScienceDaily.com has discovered an interesting and often unconscious habit--people do away with old, crumpled bills faster than they do with clean, crispy ones. Researchers from the University of Guelph in Canada have found that this behavior affects how and when money is used.

Professor Theodore Noseworthy of Guelph’s Department of Marketing and Consumer Studies, together with study co-author Fabrizio Di Muro of the University of Winnipeg, and his team of researchers did five trials where different groups of people were given both old and new bills and were asked to spend them. All trials showed that old bills were let go faster than new bills, simply because they looked like they’ve passed hands too often for comfort, making them "dirty." 

"We tend to regard currency as a means to consumption and not a product itself. In other words, it should not matter if it's dirty or worn because it has the same value regardless. But what we show is that money is indeed a vehicle for social utility, and that it's actually subject to the same inferences and biases as the products it can buy," Prof. Noseworthy explains.

Interestingly, the behavior changed when the participants spent the money in front of other people. They used newer bills as if to show them off, going to lengths of paying more small but crispy bills than just using one big but crumpled denomination.

Although this tidbit of information may seem mundane, try watching yourself and the way you spend. Do you pull out your older bills easier than newer ones? You may be spending more than you initially planned to. Remember that money, no matter how crumpled, is still money. Respect its value. Once you do so, learning to properly budget what you have will be a breeze.

(Photo by Michael Francis McCarthy via Flickr Creative Commons)

COMMENTS
Name :
Email :
Website :
Comment :
Security Image
 
 
NOTE: FemaleNetwork.com is a CLEAN ZONE. Editors reserve the right to delete obscene comments.
Filter comments by:
  • Be the first one to comment...
Filter comments by:
 
follow us
Charlene J. Owen
Staff Writer
LATEST Articles
MOST READ Articles
5 Tips to Stay Focused at Work
Increase your productivity with these simple tips.  Apr 20, 2016 
Things You Need to Consider Before Asking for a Raise
Here's how to get what you want and deserve.  Apr 04, 2016 
Things You Should Do Every Day to Increase Productivity
Hit the ground running!  Mar 28, 2016 
5 Perks of Working on a Holiday
Who says that doing overtime on a holiday sucks?  Mar 25, 2016 
ADVERTISEMENT