Examining the Importance of Cash in Modern Transactions

Examining the Importance of Cash in Modern Transactions

By Lars Guo

Published: September 12, 2024

Opening Message:

Hi folks! I hope you're doing well! In today’s blog, I’ll be discussing cash—its pros and cons, and my personal take on its role in modern transactions. This topic was inspired by a YouTube channel called Spencer’s Adventure. You can check out his channel here: Spencer's Adventure Review. He recently made a video about cash, which sparked some thoughts and learning on my end: Cash Video. Please note: This blog reflects my personal experiences and insights, as well as some points I’ve gathered from others. I hope you enjoy reading, and I’d appreciate respectful comments. Thank you! Also, I am not affiliated with nor sponsored by Spencer’s Adventures.

I took this photo.

Pros of Cash:

Cash has its perks! Some businesses offer discounts to customers who pay in cash. For example, my former doggy daycare workplace gave a 10% discount to anyone who paid with cash instead of a card. Cash transactions also help small businesses save money on card transaction fees, which can add up. Additionally, using cash can help you control your spending. Since you’re working with a fixed amount, it's harder to overspend. I’ve found myself skipping unnecessary purchases just by looking at how much cash I have on hand. With a credit card, I might have bought things I couldn’t afford at that moment.

Another advantage is avoiding credit card or debit card fees, which I’ve experienced firsthand. In San Francisco, I was charged a credit card fee when dining at a ramen place in Japan town. Similarly, I had to pay extra fees when using a card at a local massage place to leave a tip. Cash helps you avoid these extra charges.

There’s also the benefit of privacy. Cash transactions aren’t tracked like card payments. When you pay with cash, there are no electronic records, and you get to truly feel the transaction in your pocket. Moreover, cash doesn’t require electronics to be used, so there's no need to worry about potential identity theft. And, with cash, there are no overdraft fees to worry about—unlike card payments, which can come with hidden fees.

Cons of Cash:

On the flip side, cash does come with some challenges. For one, it can be stolen, and if that happens, it’s difficult to prove how much you had. On the other hand, if a credit or debit card is stolen, you can easily report it and track the charges.

Another downside is that cash isn’t always accepted. Some businesses are going fully cashless, and while this isn’t widespread, it’s still something to consider. Cash can also be bulky, especially when you have a lot of coins to carry. In contrast, credit cards are easier to carry around and often fit in a thinner wallet.

Additionally, cash is not ideal for online shopping, which requires card transactions. Plus, using cash doesn’t earn you rewards like cash-back offers or loyalty points that many credit cards provide. While some debit cards offer interest, the benefits are limited compared to credit card rewards. Cash also doesn’t help when it comes to getting warranties, whereas many credit cards offer extended warranties for purchases like electronics.

What Side Am I On?

While I prefer the convenience of credit cards, especially for the rewards and the ease of not having to carry cash, I see the value in using cash in certain situations. For example, tipping employees with cash avoids extra fees, and small businesses benefit from cash payments since they don’t have to pay card processing fees. All in all, I’m glad both options are available, but I lean more towards credit cards for the overall convenience.

Closing Message:

Do you think cash is becoming a thing of the past? Does this blog motivate you to make more cash transactions? I’d love to hear your thoughts! Thanks for reading, and I look forward to sharing my next blog with you. Have a wonderful day!

Let me know if you'd like any further changes! 😊

#ImportanceOfCash #ModernTransactions #CashInSociety #CashVsDigitalPayments #FinancialTransactions #CashUsage #TraditionalPayments #FinancialLiteracy #CashEconomy #DigitalVsCash #MoneyMatters #CashIsKing #CashInTheModernWorld