Cash is king. Or is it?
Carrying cash on in your wallet is a good thing, right? How else are you supposed to split a bill, tip a waitress, or buy a coffee at the local café? It turns out you might not need to have cash on you at all times anymore. And unsurprisingly, most people in younger generations don’t.
Why wouldn’t people carry cash?
Almost everywhere accepts it, and everyone always knows the value of a bill and whether a transaction will go through. However, people are shying away from this norm. Younger people tend to rely heavily on technology, including in banking. Banks now support direct deposits from paychecks, as well as direct billing from service providers. This allows intimate knowledge of exactly how much is in accounts in real time, so people are never unsure of how much money they have.
For younger people in particular, the idea of having cash on hand is the feeling of money already spent, since it’s not in the bank. On top of all this, it’s very easy to cancel credit and debit cards in the event they get stolen. It’s just a simple phone call to the bank in most cases.
Okay, so I shouldn’t have cash then?
Well, it’s more complicated than that. Cash is still a very good tool to help you budget, especially if you use an “envelope system” where bills, repairs, and wants are separated into different accounts and used only for those transactions. In addition, when you tip with cards, it’s much easier for service staff to be shorted on their tips. If you want to ensure a server gets full tips, it’s always best to play it safe, and use cash.
So which is it? Cash or no cash?
Really, it comes down to how comfortable you feel carrying cash. Having at least 20 to 40 dollars in your wallet is a good rule of thumb. Not all places accept cards, but not all places accept cash either. It’s best to know where you’re going and plan accordingly. This will ensure you have enough to give tips, split lunch with friends, or even go out for a drink with coworkers.
-----
One time my sisters and I got dinner before a concert in Chicago. It wasn’t until the bill came that we realized no one actually knew who was going to pay, and who was going to pay the others back. Some of us don’t carry cash, and the others don’t have the apps that make these transactions easier. Needless to say, it was quite the hassle finding an ATM in the area with the lowest fees. From now on, when I go out with my sisters, I always have just a little bit of cash on hand.