Pundits enjoy the topic of a cashless society and the prediction of the end of cash. It’s on old debate and it’s rather dated. A day does not go by that I don’t read an article or blog post about how we need to go cashless, or ultimately will go cashless. Personally, I seldom use cash and typically reach for my American Express Card, simply because it’s convenient and I can leverage the float and earn “cash back”.
So I have been thinking more about the topic, from a personal perspective, and came up with my own pros and cons of a cashless society. It’s a little jaded, because I am off the opinion that in my lifetime we will never be without some form of physical currency. While I use plastic to pay most bills and purchases (never debit), I still carry some cash when I travel or go out on the town. So here it goes:
Why I Like Cash
- I’ll often tip a server in cash. Why? Ask any serverwhy. They want cash and it provides them with instant gratification. Theremay be another reason, but I’m afraid the IRS may read this.
- I like to help the homeless, the beggars and those just down on their luck. Yes, maybe I’m a sucker for the needy, but I have beenknown to offer some coins or bills to panhandlers. If any on them takeplastic or bitcoin, I’m not falling for it.
- The smell of money is intoxicating, particularly new bills. It’s odd enough being seen smelling money, but smelling a creditcard or smartphone, well, that’s just over the top.
- A report for the American Psychological Associationstates that when paying with cash, "there is a tight coupling of the consumption and the payment, thereby accentuating the pain of paying”. Ipay for incidentals with cash, so that at the end of the month, when thestatement comes, I’m not reminded that I spent $18 on chewing gum.
- Cash under my mattress makes me feel in control. I keep$500 in cash in a safe because I live in an area prone to storms. Everbeen cashless and not have power for 5 days? When the power goes off, cashis king.
- Cash is convenient and is the most widely medium ofexchange. It’s easy to carry, it’s accepted, and it’s easy to divide fortransactions of different sizes.
- We must save the piggy bank. Kids enjoy the sound coinsmake when dropping change into a piggy bank.
- Using cash does not involve transaction fees. We’regoing to pay for virtual currency.
Why I Don’t Like Cash
- It’s really dirty. A2002 report in the Southern Medical Journal showed found pathogens — includingstaphylococcus — on 94% of bills tested. What’s in your wallet? Poop. Andother stuff.
- Cash is not convenient to obtain. There is no way I amwaiting for a teller to hand me cash. I’ll hit an ATM when it’sconvenient. It seldom is.
- Bills wear out. Like you and me, it’s lifespan islimited.
- Have you tried to cancel your cash when it’s stolen?Good luck. Cash is insecurewhen compared to other forms of payment.
- It’s harder to track spending. I love year-endstatements! I love importing transaction data.
I know the debate will rage on and most pundits will disagree with me. But all would agree there are pros and cons to cash. But what I envision is a “less cash” society, not a cashless society. I am not willing to predict that cash will be around forever, but reports of the impending demise of bills and coins are exaggerated.
