There’s long been the theory that paying with cash instead of credit is a good way to save money because it’s harder to part with cash than it is to pull out the plastic.

Well, new research shows that how much you spend can also depend on what denomination of cash you have.

University of Maryland Marketing Professor Joydeep Srivastava and his team found that people tend to think twice about making a purchase when they carry one large bill rather than smaller bills equal to the same amount of money. For example, you’re more likely to hang onto a $20 than 20 $1 bills.

“If you want to cut back on your spending in this tight economy, keep your cash in a few big bills vs. a number of smaller ones,” said Joydeep Srivastava, associate professor of marketing at the Robert H. Smith School of Business, co-author of the research. “In the face of the temptation to spend, you’ll be more reluctant to break that hundred-dollar bill so you’ll end up saving it.”

However, there can also be a “what the hell” effect when it comes to big bills. Once you break it, there’s a chance that you’ll spend more money than if you were carrying small bills.

“Unfortunately, once you break a big bill you’re less likely to pay less attention to the total amount you spend,” he said. “You’re more likely to throw self-restraint to the wind once you’ve released the impulse to buy.”

The research will be published in an upcoming issue of the Journal of Consumer Research. It follows previous research by the pair that finds consumers spend more when using credit cards or gift cards instead of cash.

I think the research is interesting, but I believe that everyone handles money differently. Since I’m so used to charging everything, paying close attention to whether I have enough money to pay the balance in full each month, I find that I have a “what the hell” effect every time I have cash.

How about you? Do you see yourself in these studies?

If you’re like about half of Minnesotans and have yet to file your taxes, maybe you can get some help on Saturday for free.

From IRS Spokeswoman Carrie Resch:
The IRS will open more than 250 local offices across the country from 9 a.m. to 2 p.m. Tax return preparation is limited to people who earn $42,000 or less, but there is no income limit for people needing assistance with other services at Taxpayer Assistance Centers.

In Minnesota, the IRS Super Saturday sites are:
• 250 Marquette Ave. in Minneapolis and
• 30 E. Seventh St. in St. Paul (nearest entrance to the IRS center is on Wabasha, across from Walgreens)

Super Saturday sites hosted by community organizations are located in Anoka, Bloomington, Brooklyn Park, Fergus Falls, Hopkins, Minneapolis, St. Cloud and St. Paul. Locations and hours of operation of all Super Saturday sites are available at IRS.gov, keyword Super Saturday or by calling 1-800-906-9887.

People who want their tax returns prepared should bring:
• Valid driver’s license or photo identification
• Social Security cards and dates of birth for all persons listed on the return
• All income statements: Forms W-2, 1099, Social Security, Unemployment, or other benefits statements, self-employment records and any documents showing taxes withheld
• Dependent child care information: payee’s name, address and Social Security Number or Taxpayer Identification Number.
• Routing and account numbers for direct deposit or debit
• Prior year tax return (if available)
• Any other pertinent documents or papers

For those who don’t want to make a trip, the IRS also offers other free services for tax preparation including the Free File program on IRS.gov. IRS customer service telephone lines, 1-800-829-1040, also will be available on Super Saturday from 9 a.m. to 2 p.m. to answer tax questions.

Happy St. Patrick’s Day. I’m going to take the opportunity on this green-themed holiday to share a couple of green-themed surveys. I mean “going green” as in being good stewards of the earth, not “going green” as in drinking green beer.

The first is about how many trees are saved by switching from paper checks to direct deposit.  According to the PayitGreen Alliance:

If you are paid twice a month and used direct deposit instead of paper checks, you would single-handedly:
- Save one pound of paper.
- Eliminate the release of four gallons of wastewater.
- Eliminate the release of one pound of greenhouse gases (equivalent to: not driving four miles and half a square food of forest preserved for 10 years).
- Save a business $176.55.

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 The Pew Research Center ginned up an interesting chart showing that while the Dow Jones Industrial Average has lost almost half its value, church pews aren’t more crowded.

Apparently there have been anecdotal stories of church attendance rising because of the economic crisis. Have you seen this at your own congregation? Started attending church in the last few months because of the economic crisis?

I have seen a growing number of religious groups delving into personal finance topics, offering Financial Peace University or classes on Buddha and the economy, for example. I figure that’s for a couple of reasons: Churches are looked at as a trustworthy place for information. Also, churches with financially healthy members will benefit when it sends around the collection plate.

It’s been a busy week in the office and in my in-box.

My e-mail purging is your gain. Here are the most interesting surveys, tools and stats of the week on topics ranging from identity theft to taxes to retirement.

Need help getting your savings on track? Fidelity launched a Guide to Personal Savings (GPS– get it?!) earlier this week that features several tools. Among them– 500 free seminars available to all Americans, live webinars, and a Savings planner.

Why the big campaign for planning? Fidelity said a recent survey found that more about eight in 10 Americans are worried about their savings, but haven’t contacted a financial adviser for help because they figure they can’t afford it.

Another (cynical) reason might have to do with people being unsure about who to trust these days. A frequent refrain I’ve heard is, “Do financial planners know more about these unprecedented times that I do?” Even so, having someone to bounce ideas off of is extremely valuable, and these folks spend 40 hours a week thinking about these issues.

Companies cutting 401(k) matches to cut costs is a troubling trend. But experts say that there are alternatives to cutting the match.

H&R Block shared a couple of tax myths as we head into the last month of tax season

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