How I used credit cards

Having never been one of those people who were unable to contain their spending when using a credit card, I instead do what I consider most convenient.

For me that means putting every purchase possible on my cards.  I like having a complete list at the end of the month of everything I spent money on and I like being able to pay all of that off at a single time, and knowing exactly what that will do to my bank balance.  In the ten years I have been doing this (I got my first credit card right before starting college) I have never not been able to pay off the entire amount at the end of the month and I have never been late.  By this point I know when the month ends on the two cards I use (I set them to end at the same time) so I go online as soon as possible once the total is finalized and pay it.

Now, I know that studies show people spend more with a credit card, and I think I probably do fall into that category, but here are the reasons I still do it.

First, I only think I pay more with a credit card than I would if I forced myself to use cash for everything.  I think I spend exactly as I would with a debit card.  However, while using only cash might keep me from purchasing something extra at the grocery store, it would also keep me from purchasing something I needed at the grocery store if I had simply forgotten to bring along that much cash.  It would also force me to keep a running total of everything in my cart, including weighing all the fresh produce I buy (and which probably accounts for 60% of my food expenditures).  I would also constantly be concerned about not having enough cash, and would be really stressed during every grocery shopping trip.  Only bringing along enough cash for what I knew I needed to buy would also prevent me from taking advantage of specials to buy in bulk.

Or I could bring huge amounts of cash, enough to cover anything I could possibly want to buy, in which case there would be nothing preventing me from buying those same questionable purchases I make with the credit card, only with the added fear of losing large amounts of cash.

So, the options really come down to credit card or debit card.  I realize there is a difference for some people, but not for me.  I would spend the same, only without the added security features of credit cards, and without the rewards.  I currently use two chase cards.  Using the first I get 5% back on drug stores, grocery stores, and gas stations with the first (so I use it at those stores exclusively).  The second is a chase freedom card, but most of what I buy using that card doesn't fall into one of their categories, so it's closer to 1.25% back.

For those who are interested, this is exactly how my mom uses credit cards.  I think she started doing it when I was a teenager, since that's when I remember talking to her about it (and I'm guessing I asked because she wasn't writing a check).  So, proof that talking to your kids about your financial decisions does pay off.