In 2009, behavioral economists Priya Raghubir and Joydeep Srivastava designed a series of studies to observe how people handle cash. They found that a single large bill carried more psychological weight than the same amount divided into smaller ones. Participants who received a fifty-dollar bill tended to keep it intact. Those given the same amount but in smaller denominations (like twenties, tens, and fives) were much quicker to part with them.

The researchers called this pattern the Denomination Effect. 

It suggested that people attach symbolic meaning to “whole” bills. A large denomination feels substantial — like something that should be protected. In our minds, smaller bills feel expendable, already halfway to being spent.

Raghubir and Srivastava proposed that this behavior is about perception. Once a large bill is exchanged, the mental barrier is gone, and spending starts to feel easier. Our minds treat the value as though it’s changed, even though it hasn’t.

Participants across different countries showed the same pattern. The behavior was not limited to one culture or income level. It appeared to be a universal feature of how the human mind organizes value. 

Once something that was once intact gets broken — a bill, a rule, a streak, a plan — our brains tend to treat the rest as already “spent.” We move from careful to more careless, from deliberate to almost resigned. That “well, it’s already broken” feeling carries a lot of weight.

Habit researchers call this the broken-streak effect. The story is the same: once something whole gets divided, our restraint dissolves. 

We’ve all been there.

• With a habit: Once we skip one day of journaling, exercising, reading the scriptures, or careful meal planning, it’s easy to think, I already messed it up — what’s one more day?
  
• With our time and energy: We often “break the bill” of our morning routine or a productive afternoon with a small distraction. Once that focus is broken, we keep scrolling, snacking, chatting, or following after someone else’s requests.
  
• With our emotional energy: When we break our peace or calm with one small irritation or fear, it’s easy to slide into what-the-heck territory and let the whole day feel frustrating or overwhelming.

• With our limits: In relationships or commitments, once we cross a line we swore we wouldn’t (“just this once”), it’s easy to rationalize doing it again.

The good news is, the effect isn’t irreversible. There are many ways to restore the sense of “wholeness” our brain relies on.

Here are a few things that help when the “bill” breaks:

• Return to the cue, not the count. Go back to the small pattern that helps you begin again. The cue is what reminds your brain where it left off and how to start.

• Remove small obstacles. Reconnect the pieces of your old routine so it’s easy to get a little forward momentum.
  
• Skip the makeup work. You don’t need to go back. Start where you are and return to the pace that helps you stay consistent.
  
• Let a break mean recalibration. Gaps in our habits or routines can reveal what’s changing or what needs to change. Treat them as information, not failure.

I can’t wait to hear how you’re keeping the denomination effect from winning. And if you’d like a hand getting back to your rhythm, I’m your gal.

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