The way you pay can actually influence how much you spend. Researchers have found people spend less when using cash, because physically handing over money makes the purchase feel “real.” Cards, on the other hand, can make spending feel painless, which may lead to overspending.

But cards come with their own advantages. They’re convenient, offer fraud protection, and often include rewards like cash back or travel points. Tracking expenses is also easier with a digital record. For disciplined spenders, credit cards can provide value.

So which saves you more? It depends on your habits.

If you tend to overspend: Cash may help you control daily spending. For example, giving yourself $100 in cash for weekly “fun money” ensures you can’t overspend once it’s gone.
If you’re disciplined and pay in full: A rewards card can actually help you save by earning perks while tracking expenses digitally.

Some people use a hybrid system—cash for daily discretionary purchases (like coffee, dining out, or entertainment), and cards for planned bills and bigger expenses.

Bottom line: The best payment method is the one that helps you feel in control. Whether it’s the tactile reminder of cash or the convenience of a card, choose the system that aligns with your financial goals.