I've been using mostly cash for the last few weeks as I have to keep my credit card spending to the minimum, mostly as I always pay it off in full and I really don't want to have to dip into savings any more than I have to, to pay it while I have such a small trickle of cash coming in each month.
Doing this has really got me thinking about what a cashless society we are becoming, and in my opinion it's not a good thing at all. Look at the meme above and see what we would lose without cash in our pockets.
I was also thinking about how much the bank is actually making from the shop keepers for our credit and debit card purchases. The highest charge that they have to pay for the convenience of taking money from their customers via card is 3.4%, and the average for credit and debit cards works out just under 2%, it is slightly cheaper for debit cards.
That means if you take £50 as an example, if it were to be spent in cash over and over again changing hands from you, to the shopkeeper, them paying for their lunch or more stock etc. it would remain at £50, but if you were to spend it in the same way over and over again on a card, it would eventually disappear altogether into the pockets of the banks.
Food for thought ... and I have to say I do like using cash.
Sue xx
Cash is the only way to manage a tight budget rigourously, I found. If it wasn't in the purse, it wasn't there to spend. People who have never experienced living hand to mouth really shouldn't be dictating rules about how to manage money to people who don't have enough. 40 years ago I was questioned by the buiding society why we had no savings. That was because I had worked out we could, for an uncomfortable level of deprivation and NO treats, manage to save 50p per week... £20 per year which seemed pointless. Once I completed my degree and we had two incomes, everything changed.
ReplyDeleteOnce you've lived through that, as I have, it changes the way you look at spending money forever doesn't it. 🫤
DeleteAbsolutely. But don't forget businesses are also charged for banking cash. It bugs me when banks won't take cash to pay into children's bank accounts.
ReplyDeleteAs a former shop manager snd shop owner I know it's a lot cheaper to bank cash. And of course you don't have to bank every day. Card payments go through immediately and are charged immediately.
DeleteCharging for children's deposits is really not fair is it. ☹️
Banks in the UK have been charging businesses when they pay in cash for almost forty years. This is shocking,
ReplyDeleteYes, I know but it's less than the cost of card transactions. Yet any business that doesn't take cards will lose sales. I tried that when my first shop was right next door to a bank with an ATM, some people still walked away from a purchase.
DeleteI remember PM Harold Wilson, saying "This will not affect the pound in your pocket". These days many people don't HAVE a £ in their pocket, just a plastic card or an app on their phone! I was thrilled recently when walking thru Norwich with my 9yr old granddaughter. A busker was playing a merry tune outside Primark. She and I did a little dance, then she fished out her purse, put 10p in his hat and said "thankyou". THAT is a glorious reason for having cash
ReplyDeleteAw absolutely ! And what a lovely, kind granddaughter you have :)
DeleteHow lovely of her, and thank goodness for cash. ❤️
DeleteOur village has been requesting we use cash for years to cut back on bank charges, most have a minimum card spend, most people understand and comply, our market trades all have card machines, sadly it's a sign of the times.
ReplyDeleteIt really is a sign of the times. Our shops and markets stall traders love it when you offer cash.
DeleteWe pulled into a petrol station one day to fill up and there was a big sign saying that they were unable to take credit/debit card payments due to a technical problem. We filled up and paid with cash, but every other car that pulled in pulled straight back out again. I wonder if the drivers of them had enough fuel left to make it to the next petrol station and, if they did, if that one was experiencing the same problem? What would they do then?
ReplyDeleteWe have had a few days over Summer when the card machines at all three of our supermarkets went down. The 3 ATMs in town were soon empty of cash and things just ground to a standstill.
DeleteI totally agree with you. I much prefer to use cash and find it so much easier to track what I'm spending. Yesterday Graham spent almost 3 hours trying to work out where he had spent £3.59 on his phone app. That was the amount he was short in his bank statement ! He never found it.... I rest my case ;)
ReplyDeleteHe sounds like a man after my own heart, I would have been searching for it too. 😄
DeleteI use cash and debit card in equal measure - I use my debit card to draw money direct from my current account if I have it and not if I don’t.
ReplyDeleteAs a geek that checks my account almost daily via the phone app I can see exactly where it’s all going.
Credit cards no longer make sense.
But I also have to have cash on me at all times as I’m a dedicated charity shopper!
I only use my debit card to withdraw cash, I have no option we don't have our bank in town ... although we are just getting a Bank Hub.
DeleteI have a credit card for the offers I get on it, and for the insurance it provides for purchases and holiday transactions. Also giving it up would lower my credit rating.
I like cash and use it whenever I can. I don't think anyone in the family uses it.
ReplyDeleteI much prefer cash, no I don't think my sons use cash at all these days.
DeleteI agree with you. However if cash is "phased out" somehow, trade will take it's place in inventive ways.
ReplyDeleteWhat with phone transactions and watch usage, I wonder what will come next. 🤔
DeleteDon't think it'll be a cashless society for a few years but stranger things have happened. What a shame it would be.
ReplyDeleteAlison in Devon x
It would be a real shame. My Mum wouldn't have been able to go for her usual M&S coffee these days if she was still able to, as she wouldn't know how to use the order and pay machines ... which of course are card only!!
DeleteI prefer to pay with cash. It makes me angry when a few shops won't accept cash, just card!
ReplyDeleteI've never come across that yet, but I can see it happening soon. 🫤
DeleteI completely agree with you, Sue. Yet, I hardly ever use cash anymore.
ReplyDeleteAnd try teaching young children about money - most don't have a clue.
I agree, the young folk in our family all use bank cards already and have for a while. If I ever forget and give my youngest grandson some money he immediately passes it to his Dad and asks him to transfer the money from his Dad's bank account to his via their phones.
DeleteI'm trying to use cash as much as I can. I noticed in Suffolk, when we visited three years ago, that some businesses had cash only signs. I was pleased to see it and hope it continues.
ReplyDeleteI wish more places were like that. I don't think we have any 'cash only' shops here but there are a few with 'cash welcome' signs on the counters.
DeleteI am not sure if we will ever become a truly cashless society as many still use cash. I do for the smaller things I purchase, and for any hobby or craft items I buy.
ReplyDeleteGod bless.
Hopefully it won't happen in our life times, we have already lived through so many changes and innovations in the last fifty years.
DeleteI think COVID resulted in most places taking only card coz you can tap a card rather than handle money. It should of been a short term thing though instead alot of businesses have stuck with card only or card preferred etc. How do we teach our children the value of money when everything is done using a plastic card. I read the money secret many years ago and the character in it did all her budgeting using cash cups and a rainy day teapot (I think it was a teapot if memory serves). Obviously most bills are done by direct debit now for convenience which is fair enough but to budget the rest of ya income cash really is key. Small businesses often prefer cash coz they get charged a percentage for card transactions but so few people carry cash now that most small businesses will forfeit a percentage of their sale to the banks coz they figure they probably still make more than just accepting cash coz unless you really want to buy something who's gonna go find an ATM and return to the shop. People want convenience and sadly most are unwilling to go out there way to help small businesses. People use credit cards aswell to book holidays etc coz if something goes wrong you've more chance of getting your money back if it's on a credit card instead of in cash. Again a ploy to feed banks coz people don't usually pay off there credit cards every month so the money they 'saved' by having the insurance of a credit card they probably end up spending on fees. I think cash connects you to your spending and we shouldn't be punished for wanting to be in control of our own money. Anyway rant over lol. I loved reading your blogs over the years with your cash challenges and seeing the pics you posted it was really inspiring. Ps we don't have a credit card or overdraft etc we may live paycheck to paycheck but at least we're not in debt 👍
ReplyDeleteIt was Covid that changed the way a lot of us did transactions wasn't it, and a lot of shops just stayed with the card transactions after all restrictions were lifted. I have just ordered The Money Secret, second-hand of course, as it sounds fascinating. Living paycheck to paycheck is fine if you don't have any debt, maybe you can start a small emergency fund that you can add to sporadically.
DeleteThanks for reading my various blogs over the years, I really appreciate it. xx
We keep trying to put an emergency fund aside but inevitably something happens and we need to use it. Will keep trying though. I think you'll enjoy the money secret. I really enjoyed it and it's one of those books that makes so much sense. I'd love to know your thoughts when you've read it, maybe you could do a post about it 😊
DeleteYour blog is my favourite I love reading it! Thank you for blogging.
Ah, you have to remember that when you need to use it, it's there for you to use because you started the emergency fund off. Even a couple of pounds in a tin tucked away is useful. It took me literally years to have any serious savings in the bank, I remember the struggle clearly, it never leaves you.
DeleteI'll let you know how I get on with The Money Secret, thanks for recommending it. 😀
I prefer to pay cash or pay by check, but, these days, I do have to use my credit card for some things. Like parking at the clinic, where they switched to credit cards, only. The gas (petrol) stations here, charge you more for using a credit card (they pass on some of the fees the banks charge them to customers); usually, it is $0.10/gallon cheaper to pay cash and that is what I choose to do. I do always carry cash on me for an emergency - if there is a big earthquake (I live in "earthquake country") and the power goes off, credit cards will not work, but, cash will.
ReplyDeleteGosh, I haven't used a cheque for years now, there's not many places that will accept them anymore as they cost more to bank than cash, and the funds aren't available to the shopkeeper immediately. Yes, a lot of our car park machines are card only these days, we do have one in town that still takes cash though.
DeleteWe seem to have lots of small power cuts in our town and then it is always handy to have cash available.
I hate car park machines, cash and contactless is ok but guaranteed when im rushing it says you have to pay by app which means you have to download the app which is always slow to download, its so time consuming and I don't like having the apps on my phone they've always got bad reviews and take up battery power etc. why can't they leave it simple cash or contactless done it would be less irritating and quicker!
DeleteI live in hurricane country and if the electricity/hydro are compromised cash is king...I agree.
ReplyDeleteThat is definitely one of the best reasons for keeping cash in circulation.
DeleteNo cash would mean not having been able to Raffle Tickets at a community event this weekend.
ReplyDeleteAnother VERY good reason for cash. Imagine how many small charities would suffer without dribs and drabs of cash being donated, and at events selling small items.
DeleteI agree it is tremendously important to keep cash flowing. We will all live to regret it if cash is no longer used.
ReplyDeleteI cannot imagine a cashless society, we would lose so much freedom.
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