“Some consumers see large bills as more sacrosanct than a bunch of chump change,” says a story in Time magazine about the study, which will be published in the Journal of Consumer Research. The downside to carrying big bills is that once we break the $100, we are likely to blow the rest of our wad.
I rarely carry cash because I spend it so quickly. I prefer to use my credit card for most purchases because at the end of the month I have a record of where my money went. With cash, it is too easy to forget how I spent my money.