Cash in Style

Researchers have found that people tend to spend less when they have larger denominations, even if the total value is the same, due to the "denomination effect."

They also hypothesized that people may associate worn bills with contamination, leading to feelings of disgust and a stronger urge to spend them. In contrast, crisp bills could be perceived as more valuable and worth holding onto, regardless of their denomination.

The researchers also investigated how social context affects our spending choices and whether we change our spending habits in private or public situations. The ultimate message is to consider the psychology behind our spending choices and to be aware of the impact of the appearance of bills and social context on our behavior.