NDSU Extension Service - Ramsey County

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Save Money with Cash

Save Money with Cash

            “Money talks” is an old adage that is very relevant in today’s economy.  While the vast majority of Americans use plastic to pay for everything from coffee to couches to carrots and other items on their grocery list, there are a growing number of individuals who use the “cash only’ method of money management.

            For some consumers, it is truly cash in hand that is being used –not a debit card, not a check, but a fistful of dollars.  Paying with cash offers you several benefits you maybe never thought about. Here are some advantages of paying with cash with some information that may help you to choose the most suitable payment method.

            Saving cash can actually be easier than transferring dollars to a savings account.  Before making a transfer, we often feel we much have a fairly substantial amount to transfer.  Almost every purchase with cash will provide you with loose change to save for the next purchase.

            Staying out of debt – paying with cash will ease how much you spend for your purchases.  You can’t spend more money than you have on hand so no inadvertently overdrawing your bank account or going above your credit card limit – and having to pay overdraft fees.

            Discounts for cash – many stores offer discounts if you pay with cash.  If you pay with cash, the store does not have to pay their retailers fee for using a credit card or debit card.  The store may actually save money if you pay with cash.  Many merchants offer discounts between 2-5%.

            Easily accepted - Checks are not always accepted and there are still businesses –especially smaller, pop up businesses or food concession stands – which are not set up to accept credit or debit cards.

            No problems with identity theft – The personal from a check, credit card or debit card is obviously not available on cash for an identity theft to use.

            Technology has changed our lives forever and the convenience of payment online save us time and money but paying with cash has several advantages. As with other money management methods, a consumers needs to weigh the pros and cons for their specific situation.

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