I like using cash for a lot of my transactions.
I don’t have a lot of money, and it’s frankly better for me to have walking around money that I know will go away.
Everytime you use a credit card/debit card there are transaction costs that eat into the bottom line of businesses (especially small businesses), they have to pay for the transaction.
It’s fast, and you feel like you are actually spending something. If you have say $40 of walking around money for small purchases you realize how much you can spend and will stop when you have spent all your money. An example would be this week when I have less than $100 left in my bank account. If I take say $80 of that $100 left I have in cash I know I have no worries about fees, and a ceiling to what I can spend for the week.
I have even heard of people who cash out their entire check in envelopes to know how much to spend for each transaction, cash feels dearer than a credit card. Stores know this, it’s one of the reason they ask you to get store cards. We live in a society, where it’s easy to get debt, cash helps with this.
Let’s also not forget that every debt card transaction is pretty much a check and that means if you get overdrawn you can face overdraft charges, or even bounced check fees for that coke you bought at the local gas station.
Even worse are some companies that either have direct deposit, or force people to use high fees debit cards for their paycheck. I know there is a cost to writing checks, but to give your lowest paid workers who don’t have a bank account tons of fees to me is morally wrong.
Cash is a good thing, there is a reason small, working class local businesses are cash only, to think that we should live in a cashless society implies that people have money in their account in order not to worry about fee transactions. Unfortunately, the billions in overdraft fees banks have received in the last few years proves this is not true.
Ask places like Mama’s Crowbar, beer only/cash only; Arco — looked at the finances of a gas station and realized how huge the credit card fees were and went cash only; local newsstands, food trucks, etc. Realize that small business people want cash for a reason, it’s easier, cheaper and has high velocity.
Cash is good, long live cash.