There’s no question that cash remains the most crucial currency to date anywhere in the world. However, carrying cash will soon be unnecessary, given the current digital era, where contactless payment methods and mobile wallets are gaining popularity. However, several Americans continue to use coins and bills to make payments. According to new research by Empower, approximately one in five people prefers the convenience of using cash and its low risk.
Although it is convenient to swipe a card, there are occasions when carrying cash can be extremely helpful. Let’s explore the convenience and practicality of sticking to physical money for your everyday purchases.
Security & Privacy Concerns
Cash provides a level of secrecy that digital transactions fail to deliver. Cash transactions do not require sensitive account information or leave a paper trail. Digital commerce, on the other hand, can leave a trace of data that can be used for nefarious reasons if it falls into the wrong hands. Plus, cash transactions can be done anytime, even if there are system malfunctions or technical issues.
Cash-Only Businesses
Some businesses only accept cash payments. Certain small businesses, like street vendors, prefer cash payments because they don’t need to pay for credit card processing. If you are a frequent visitor to such businesses, you will need to make sure you’re bringing some cash with you!
Cash Tipping
Cash tips are popular among individuals who work in service-related industries, which include food service, hospitality, and personal services. When you tip your waiter or attender, they will accept it and appreciate the thought. Since cash tips are considerably more straightforward, they prefer it over waiting on a final credit card transaction summary at the end of the work shift.
Emergencies & Technological Blunders
If you need a taxi ride in the middle of the night and the taxi driver refuses to accept your credit card, having physical money on your person will come to your rescue.
There are also situations where a technological emergency prevents you from using digital payment methods. Imagine yourself being in a position where you have trouble finding sufficient cash to pay your bill at the supermarket, and their credit-processing system is down. You might have to leave your cart and all those items you spent time picking out behind. This is why it is advisable to always carry some cash as backup, even if you are accustomed to digital payment methods!
Spending & Budget Control
You can control your finances more effectively and avoid impulsive purchases when you use cash. It is a proven psychology that people find it harder to part with physical money than they do with a bank balance. Simply put, you can understand the significance of money better when you deal with it physically. Since transactions done via digital payments are often fast and simple, you may lose track of your expenses. You can control your expenses better when you are confined to spending the money you currently have. Therefore, using cash automatically limits spending. Unlike digital transactions, cash usage makes it harder for you to overspend or incur debt.
Small Purchases
Little purchases like a scoop of ice cream, a streetside snack, or a vending machine treat are all mainly intended to be paid with cash. In addition, some small businesses, like neighborhood convenience stores, maintain a minimum purchase condition to justify the credit processing fees they must pay before accepting credit card payments. Cash will be helpful if you are unwilling to pull out your credit card to pay $5 or $10.
Parking & Tolls
Electronic transponders such as E-ZPass have replaced cash in several states and toll situations; however, not all of them. Carrying some money with you when paying tolls with cash will be necessary. In addition, cash can be beneficial for those who pay parking fees regularly. Moreover, when you come across broken credit card readers, some money can significantly help!
Convenient Gifting
Most of the time, cash is one of the ideal gift choices. I mean, who doesn’t love receiving some crisp dollar bills? Plus, placing cash inside a holiday or birthday card is highly convenient for the gift giver. Moreover, expressing your appreciation to someone with cash is a good way to show it.
Quick Payments
Patiently waiting for a staff member to get your bill can be cumbersome if you’re in a rush. In such scenarios, customers can pay by leaving cash on the table if they know the exact amount of the bill.
Yard Sales
If you are a yard sale fanatic, having no cash could be a disadvantage. If you pay by cash, you might succeed in negotiating a better deal. For instance, if the owner of the yard sale demands $55 for a stove and all you’ve got is a $50 bill, they might agree to take it to sell it off sooner. Plus, it’s unlikely that a yard sale will accept credit!
