“Currency still has its place, despite the pervasive use of plastic.”
Today, it seems that more people are using credit or debit cards to pay for everything. And yet, this article provides reasons why cash may be a better payment option. Those include
- A cashless society? Not so fast. According to a recent Federal Reserve Bank of San Francisco study, 40 percent of consumer transactions involve cash–a higher percentage than for debit cards (25%), credit cards (17%), electronic payments (7%), and checks (7%).
- Currency comes in handy. Most vending machines don’t take plastic, and cash works best for all small purchases.
- Hamiltons can’t get hacked. With data breaches of major retailers becoming common, some consumers pay by cash to protect their credit card information.
- A cash fix can cost you. If you get a cash advance from an ATM outside your bank’s network, you’ll pay more than $4, on average.
- Cash is a great budgeting tool. If you have trouble controlling your spending when you pay with credit cards, then cash or a debit card is best for your finances.
- Paying by cash may be a good option, but it won’t help build your credit history. Using a credit card now and then for routine purchases can help build a good credit history.
For more information, click here.
Teaching Suggestions
You may want to use the information in this blog post and the original article to
- Reinforce the concept of paying by cash.
- Discuss what happens when people use their credit cards and overspend.
Discussion Questions
- Would you prefer to pay for merchandise and services with cash or credit? Explain your answer.
- How could paying with cash help you balance your budget and control spending?
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