Some of us choose to pay for everything with our credit cards to earn points, but some of us old school consumers still like to pay for everything with cash. I am the first to admit that cash can be dangerous for our spending habits, our impulse shopping, as well as our security. But for some reason, I still choose to carry cash.
First, there is the security risk of potentially being robbed. We could lose not only the cash in our wallets, but everything else we carry on a daily basis. It can be a total nightmare to replace important documents and identification. It can be a financial nightmare to try to prevent fraud on stolen debit and credit cards. This, among other reasons, is why I choose to always carry some cash in my wallet.
There are still several places that choose to only accept cash as a payment method. These are usually places where we wouldn’t shop if we didn’t have cash in our wallets. How many times have you bought a bigger coffee because you had cash in your wallet? Have you ever added a bagel to your coffee order just because you had enough cash? Carrying cash in our wallets can be dangerous for our spending. We may end up spending money just because we had the cash in our wallets.
On the other hand carrying cash can also be good for our budgets. If we use our debit cards or credit cards to pay for our purchases, we would have unlimited access to the money in our bank accounts at the swipe of a card. However, carrying cash limits our spending. We are only able to spend the cash in our wallets and then we are done spending.
Other than increasing our spending, carrying cash can also prompt impulse spending that otherwise would have not be spent. This type of spending includes giving to various soliciting charities, donations in the office, and other impulse purchases such as magazines and newspapers as we wait at the checkout or walk by a newsstand.
If I have cash in my wallet, I always feel the need to give it to anyone who asks just because I have it in my wallet. This past week I spent $10 on candy because my office was fundraising for United Way…Who needs to eat $10 of candy in one day? Not me! I also do not like to give money to the homeless on the street. Not because I’m cold-hearted, just because I don’t want to support anyone’s alcohol addiction. However, if I have money in my wallet I always try to help those who are less fortunate.
(Photo By Dyobmit)
Kristina Tahnyak
Tahnya is a Certified Financial Planner and former Investment Advisor turned marketing and communications professional She holds a degree from Concordia University, is debt free and currently works in the field of digital marketing.
I never thought of the dangers of carrying cash, maybe because I am for the most part a credit card using person. I think it is easier to cancel a credit card and harder to get my “cash” back, but there are good and bad points to each. I also think it is funny that you talk about the dangers of cash, because so many people advocate the use of cash to help you save and budget better.