Cash Has Poor Percieved Value

Many individuals spend cash haphazardly. Five hundred dollars can go in a number of different directions, and none of them seem worth much once the cash is gone. But travel or merchandise valued at the same amount normally has higher value in both perception and reality. There’s also a guilt factor involved. People generally feel guilty if they spend a cash incentive on a luxury rather than saving it or paying off bills. Non-cash awards are guilt-free because the recipient never has to actually give up money for it – it’s seen as something extra.

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