Using Your Debit Card Can Actually Help Get You Richer (No Joke)

Image via Shutterstock

We all have money concerns—even those who make over $100,000/year and have just a couple thousand dollars worth of debt. But, just because we all worry about a budget, doesn't mean we should just become hermits and never spend a dime. In fact, new research suggests otherwise—just do it with your debit card.

According to a new study from the National Bureau of Economic Research—who looked at surveys from a Mexican government program called Oportunidades, which covered over 340,000 accounts in 357 banks over a four-year period—recipients would typically withdraw nearly all of the funds that were deposited within a few days.

That all changed once the program issued debit cards, however, with recipients checking their bank accounts less often and gathering interest on the money in their account, leading to an increased savings of 3-to-5 percent.

It's an interesting tactic that more people should probably use to maintain savings and work towards retirement.

So, while we all think using "straight cash homey" is the way to go, this research suggests that it can actually lead to worse spending habits in the long run, thus making your financial future foggy.


MORE: 'Here's How To Make Thousands From Your Bank, According To One Money Saving Expert'