A couple of days ago NBC reporter had a story on whether we would be a cashless society. He really didn't answer the question, but talked about his experiment where he kept all his receipts after using his charge card for a week, and then all the receipts for using cash. It wasn't really a fair experiment in my book because he admitted he had to keep getting cash and that he had to replace a hard drive so that really drove his spending up. I think he should redo it and just see what he spends if he only has cash and when he runs out, he can't head to the ATM. He did admit that he was a mess as far as money so maybe there was some value in his cash v. plastic trial.
I know I blogged about counting pennies and taking them in to put in our vacation fund. Fortunately our credit union lets us bring change in and doesn't charge us. I did take some wheat pennies into a coin shop. I knew they weren't worth much, but figured anything over the penny was better than nothing. I realized a dime for my troubles, but it was an errand that didn't cost me anything but a few extra steps since I was already near the coin shop. The young man who waited on me said that wheat pennies aren't collected very much anymore and most people just melt them down for the copper.
Most of my friends rarely carry cash. They bring out that credit card for everything. And those friends are the ones who complain about being short of money. Two of my friends use cash for most things. That is not to say they don't use credit cards or pay with checks, but for some of the mundane things, they use cash. DH almost always pays cash. I had read some articles years ago that said if people saw the cash they were spending, they would be more mindful.
A couple of years ago a friend who never carries cash had an issue with his debit card. It is one of those that is both a debit and credit card. Something happened that made the bank lock down the card and it was over the weekend and he could not get a hold of anyone. He had no cash at home. No checks. And he and his spouse do not keep food in the house -- they shop before most meals unless they go out. He said he never thought what it would be like not to be able to buy gas, buy groceries, or even a cup of coffee. When he got in to the bank early Monday morning, the bank manager said it would take a couple of days to figure out what was going on and unlock the accounts and he suggested from now on my friend should keep some cash at home in case there is another problem.
So, if we do become a cashless society, what happens when there are glitches. With all the technology problems, hackers, etc, I can see this happening if we depend on cards, Apple pay, or whatever else is out there.
Is Cash King? Will we be a cashless society soon?
January 26th, 2020 at 08:40 pm
January 26th, 2020 at 08:55 pm 1580072147
January 26th, 2020 at 09:21 pm 1580073681
January 26th, 2020 at 09:28 pm 1580074124
I think it's pretty doubtful that all forms of electronic payment would go down at once unless there was some major disaster, but it can't hurt to have some cash in my wallet as a back up. And I do still encounter the occasional merchant that is cash only.
We also keep an emergency stash of cash secured in the house. If there's some disaster or we have to evacuate, that's on the list of things to grab before we head out.
January 26th, 2020 at 10:48 pm 1580078883
What is wheat pennies?
January 26th, 2020 at 11:06 pm 1580080009
I rarely use cash. I do carry some on me. And I do keep cash on hand at home.
January 26th, 2020 at 11:16 pm 1580080601
Any value they have is because of their age!
January 26th, 2020 at 11:30 pm 1580081442
The article listed other areas that also recently passed like measures. For business it would seem an easier route to be cash free thus eliminating chances of theft or mishandling.
i looked for the link but cannot seem to find it today.
January 27th, 2020 at 12:25 am 1580084748
January 27th, 2020 at 12:30 am 1580085033
I know we have encountered at least one restaurant chain in Virginia that is cashless.
January 27th, 2020 at 03:18 am 1580095130
January 27th, 2020 at 03:19 am 1580095195
January 27th, 2020 at 04:50 am 1580100653
January 27th, 2020 at 02:37 pm 1580135875
January 27th, 2020 at 06:21 pm 1580149290
I totally agree, but I also realize that we are in the minority. How much I spend is not influenced in any way by how I pay when I get to the register. It just isn't.
But study after study has shown that the average person does spend more with a credit card. McDonald's saw their average tab rise significantly when they started accepting credit cards. Most people love to spend money they don't have.
January 27th, 2020 at 09:25 pm 1580160321
All your comments are interesting. I think the fact that some of you said you don't feel credit cards are the reason people spend more, but I also feel that many of you are very good about tracking your spending. The reporter admitted he wasn't, he just pulled out the card because it was easy. As Disney Steve said, it is a mindset.
I think most of us all use cards to their best benefit -- I use mine to get the cash back and because it makes check out at the grocery store go faster. We keep cash for eating out and gas and thrift store shopping. I think the servers appreciate getting tips in car instead of having to wait.
January 28th, 2020 at 12:51 am 1580172705