BUDGETINGLIFESTYLE & TRAVEL

The Case for Carrying Cash

It’s no secret that carrying cash is becoming an antiquated practice as we move further into using digital currency. However, there are very good and serious reasons to continue carrying a small sum of cash. Before we discuss the reasons to carry cash, let’s talk about the digital options available.

Digital Payment Options

1. Debit/credit card chip, swipe and tap: While you may physically carry your cards with you, your payments are made and processed digitally.

2. Tap-to-pay devices: With the use of a smart device such as a watch or phone, the financial institution information you have connected allows purchases to be completed at numerous businesses.

3. Financial platforms: The increasing use of digital payments gave way to online banking and payment accounts such as Venmo, PayPal, CashApp and others, as well as solely online financial institutions.

Online and digital access have made it easier to make purchases, do business, and live more freely with our finances. Despite the advantages and convenience of digital payment options, there are quite a few reasons to continue using cash too. Some you may already know, while some of the reasons may come as a surprise. Read on to learn more.

Reasons to Carry Cash

1. Better support of small businesses: When individuals choose to use digital payment methods, most businesses pay a fee to process the transaction. For small businesses, this can impact their bottom line. Instead, pay with cash and let every dollar go to the business and help create thriving communities.

2. Customer fees: With transaction fees affecting business revenue, it’s quickly becoming standard practice to pass the fee on to the customer. Just like for small businesses, those fees add up and can impact the customer’s budget. Paying with cash helps customers avoid those fees and maintain healthy budgets.

3. Emergencies: Various emergencies can happen at any time, and having access to a credit or debit card can make them easier to handle. However, what happens when an emergency leaves us without access to electricity, internet or electronics? Carrying cash allows people to make important purchases should there be wide-scale power or internet outages.

4. Tipping: While dining out, it’s customary to tip wait staff — at least in the United States. However, when tipping digitally, wait staff may not receive the full tip due to processing fees and charges. Tipping in cash allows wait staff to keep every dollar earned.

There are many reasons carrying a small amount of cash should be standard practice, including the options discussed above. If you still aren’t convinced, here’s another way to look at it. Consider the food we eat. Health facts support the idea that eating a wide range of fruits, vegetables and protein helps us maintain optimal health and encourages us to avoid eating the same items routinely. Finances can be looked at in the same way. We shouldn’t invest in just one area for assets, we shouldn’t maintain only one financial account —such as a single checking account and no savings account — and we shouldn’t use only one payment method. Carrying cash doesn’t mean you can’t use a debit or credit card; it simply offers more payment options to be used based on each situation. If you’re planning to carry cash, it’s important to recognize how much to carry is a personal choice and can only be determined by the individual. Take time to reflect and consider your own circumstances to decide the amount of cash that is right for you.

Sources:

https://www.nasdaq.com/articles/experts:-8-surprising-reasons-why-you-should-always-carry-cash