Cash remains the most popular form of payment, with 57% of people preferring to use notes and coins to cards, according to research.
The importance of cash is often overlooked, but it plays a crucial role in the short-term financial planning for many people.
Consumers are likely to spend less when they hand over cold hard cash versus swiping plastic, since cash feels more like real money. When you have tangible money in your hand and you can physically feel it depleting each time you spend, you are much more likely to notice how much you are spending and be more careful about it.
There are also many drawbacks of regularly using credit and debit cards. Ultimately, they encourage you to spend more than you intended to. Yes…. we’ve all done it! But with cash, spending requires a physical action – actually going to an ATM (and viewing your depleting account balance) prior to entering the store to make your purchase. Oh, the guilt!
Cash has one very clear advantage over using a credit card: If you buy something on your credit card, chances are you’re only making the minimum payment each month. It might take years for you to pay off the balance for a single purchase.
When you swipe plastic, retailers often ask for additional information such as your post code and email address so they can bombard you with offers and news later. Annoying isn’t it! But with cash, you are less likely to receive hundreds of email marketing and when retailers don’t have your email or mailing address, that information can’t be stolen in a data breach.
Cash is certainly KING!