You can officially add cash to the list of things that millennials have seemingly ‘killed off’. Millennials responded to a survey by saying they see cash as an inconvenience that they never have on hand. And they kind of have a point. There are plenty of good reasons to not be carrying around a ton of cash. Here are six of the biggest reasons to carry less cash.

1.      Lack of Security

The most obvious reason people are ditching cash in favor of cards is for the lack of security. If you have ever lost your wallet, then you know the hassle of dealing with that loss. You are going to have to call your credit card company to make sure that no one is using your card if it were to be found. And if someone has already used your card there’s no reason to stress as they will ensure that you do not have to pay for any purchases that you did not make. Now if you had any cash in your wallet when it was lost or stolen, then you are just going to have to come to terms with that loss. There is no way to recoup any lost or stolen cash and this lack of security is why people who do carry cash will just stick to smaller amounts.

2.      Exchange Rates

If you are traveling out of the country, it is standard to acquire the currency of the location you will travel too ahead of time. This issue with cash exchange is that you are locked into the exchange rate that you exchanged the cash at. This can obviously be a good or bad thing depending on the strength of the currency you are exchanging, but it can be beneficial if you have an idea of what the market is doing ahead of time.

3.      Avoid ATM Fees

Unless you work in an industry where you are paid in cash, you will likely have to pay a fee to access cash from your bank. ATM fees can also hit you on both ends as some banks have you paying a fee out to them in addition to the ATM fee. If you take out cash at an ATM on a weekly basis, you are literally paying to access your money. Unless you need cash for something specific, it is always better to just leave your money in the bank for use through your debit or credit card to avoid extra fees.

4.      No Reward Opportunities

One of the biggest reasons to ditch cash for cards are the reward options available to card users. Credit and debit card companies have stayed competitive with one another by offering cashback rewards to their users. However, these rewards can often seem insignificant. That’s why we are fans of the no-strings attached debit cards that you can acquire through payment apps like Cashapp or Venmo. These cards function exactly like your standard debit account and come with options for direct deposit and bill payment. You will have an account and routing number so you don’t have to worry about paying extra fees when doing money transfers. And this free debit card offers the chance to get your next purchase paid for entirely in addition to rewards and cashback on purchases. Unlike with a standard bank, you will not have to worry about maintaining a balance or expensive overdraft fees. It is now easier than ever to acquire a debit card with built in rewards so you will definitely not want to miss out on this by only using cash.

5.      Online Purchases

As our society continues to convert as many industries as possible to be online, cash will continue to become obsolete. Nowadays we can purchase everything online from toiletries to pet food to groceries. Even gift cards can be purchased and gifted electronically. Being a cash user will exempt you from these innovations entirely.

6.      Finance Tracking

It is all too easy to forget about cash spending. Once it’s gone, it’s gone and without so much as a record of the purchase beyond a store receipt. A survey of 2,000 people reported that 44% of spenders believe that they are more likely to spend money if they have it in cash. They also responded that they were more than twice as likely to cite cash as the hardest form of payment to track when compared to using a credit or debit card. If you are someone who struggles to track their finances, or you would like to start tracking better, using debit or credit is going to be your go to.

Ditch the Cash

While you still may want to have some cash on hand for emergencies, using a debit or credit card is the superior way to pay for your purchases. Don’t make the mistake of being a primarily cash user and try out a cashback or rewards card instead!

LEAVE A REPLY

Please enter your comment!
Please enter your name here