The Power of Cash: 12 Reasons Why People are Still Choosing it Over Other Payment Methods
There was an interesting online debate recently centering around hard cash, with a fascinating thread emerging from the following question: “Are you still using cash? Why?”
How did people respond? Our fiscal authorities are inevitably pushing us ever closer to a cash-free system. While this scares many people, others are surprised anyone still uses dollar bills.
So, why are people still using cash?
1. Tax Avoidance
In theory, not claiming cash payments may save you money, but should anything go wrong and you need worker’s insurance, you will only get comped for what you declared — especially if you are working for a company and rely on tips.
2. Restaurant Tips
With millions of workers in the hospitality industry, cash tips are a vital source of income — especially considering the pittance some of them get. Some servers told of how they use cash to buy lunch and how it is like “secret money” unseen by the banks. Mwa-ha-ha!
3. Out of Sight
Particular couples enjoy receiving cash because it means they have an innocent little money stash they can keep hidden from their spouse. It doesn’t need to infringe on shared or family expenses and remains “off the books.”
4. Criminals Love Cash
For obvious reasons, many illegal drug dealers don’t accept credit cards. While standing on the local street corner with pockets full of cash could be dangerous, it sure beats spending ten years behind bars when the authorities catch you.
5. Cutting Out the Middle Man
Some users argued that paying by cash in local mom-and-pop stores means the credit card companies miss their commission on retail sales. This way, all the money stays in the community and doesn’t line Wall Street’s deep pockets.
6. Buying Gifts for a Loved One
If one member of a couple is in charge of the accounts, buying them gifts is impossible, so having some cash handy can be helpful for those surprise concert tickets. If a partner, for example, buys concert tickets and then hides them, it may look like infidelity.
7. Not Tipping!
Although tipping is cited as one of the main reasons to use cash, one thread showed that when one pays in cash for a service, they don’t get any prompt to pay a tip. So they carry cash to avoid tipping! This is quite a harsh reality, though it may be necessary if the service is woeful.
8. Leaving No Trace
These days, it seems going off-grid is becoming harder and harder, so if you ever fall into trouble with unsavory characters — or the authorities — disappearing is made easier with wads of greenbacks. Of course, Ron Swanson will be nodding in agreement.
9. Farmer’s Markets
Farmer’s Markets’ popularity is high, so having small denominations available for buying your weekly bag of kale or duck eggs makes sense. This must also be helpful for the producers; all artisans need cash flow to stay afloat.
10. Being German
Germans love paying for goods in cash. According to one thread, they still pay up to 80% of things this way. Some advised you to bring paper money when visiting Germany, as many places only accept cash.
11. Avoiding Data Collection
The question provoked some curious responses about how credit cards can form a consumer profile, which companies use to advertise products. Some people are against having “banks’ algorithms” dictating which demographic they belong to.
12. Food Trucks
Food truck owners cite being paid in cash because most assume a food truck only takes cash payments. One food truck proprietor discussed that while he accepts Venmo and credit, most people prefer to pay for lunch with cash.
This thread inspired this post.
This article is produced and syndicated by Parent Portfolio.
REAL ESTATE EBOOK BUNDLE FOR BEGINNERS
Siblings Ernie and Addie embark on a delightful journey to purchase their dream board game. However, they soon realize that they don’t have enough money to buy it right away. With the guidance of their parents, they learn the power of saving.
Kids Can Learn Through Storytelling:
- The power of saving and the importance of financial literacy
- The joy of delayed gratification and the rewards of responsible money management
- Tools to teach young readers about the value of setting financial goals