Cash Verses Debit Card

Yes, sort of.

I actually do have a little bit of money tucked away for emergencies....but until pay day (the 20th), we don't have any money anyway....

What's cash?

You raise a very good point! I think it is a very wise idea to have some money under your mattress. Not a bad idea at all!

And yes, I use my debit card for everything too. I hardly have cash in my wallet.

Until a month or two ago, we operated solely on cash. Now, we have a debit card, and I've found I spend money easier, so I've been trying to go back to cash on hand. It's too easy to spend when I have immediate access to it.

Heather,
We always used cash too when we got a check in our hand but now that it goes directly into our account, we never see it.

No, we never have enough money to have cash on hand. Once the bills are paid, there isn't anything left so.... So if the banks close for a week, we'd be in the same position we are now, no money. It's something that's scary to think about.

We have small amounts of cash tucked away, that we keep for emergencies. We also generally have a little big of other cash, too. We've started pulling out cash instead of using our debit cards for everything. My husband uses a credit card for gas, and we pay it off in full each month. We use a debit card for groceries, right after we get paid. We pay all of our bills that we have allocated to that payday. We then balance the checkbook, and pull everything else out, leaving between $20-40 in the bank, in case we missed something. We use that money for anything extra that we want or need, and if there's some left when we get paid again, it goes into our savings, toward debt OR into our emergency cash. We were slowly adding to our emergency cash, so that it would be enough to buy gas to get my husband back and forth to work for a week, buy milk and produce for a week, just in case it's ever necessary.

I usually have a little bit of cash on hand

I rarely have cash on hand. Clint has some, but not much at a time.

I don't use credit cards. I use my debit card for everything we have direct deposit for both of our checks. I only purchase what I can afford. I guess I need to keep some cash on had, but I ususally don't because I use my debit card

cash

Carol,
Good for you.

no cash on hand, everthing goes through my debit card

do pennies count?

My husband's paycheck gets direct deposited also, but we pull out cash for most of the bills and for the groceries/other stuff we need every week. We find that we spend less if we only use the cash that we have in hand. I did read, not too long ago, that people who use debit or credit cards instead of cash, on average, spend more than those using cash. Of course I can't remember the amount or where I read it.

I do keep a fair amount of cash on hand, but my family is rather odd when it comes to stuff like that. At a moment's notice, I've had to fly to Europe for a funeral, this happened to be 9/12/2001. One day after 9/11. My debit card was pretty much useless and thankfully had the cash to get out of the country when I needed to(unrelated to 9/11 I should add).

I do use a debit card for most purchases, but I keep my money in an international bank that's slightly less likely to go under than most US Banks. I always keep a few hundred dollars in cash though. I know that amount isn't possible for a lot of people, but I figured out what I need bare minimum to live for a month without debit card/credit card access and keep that.

I know that sounds like a doomsday plan, and it is partly, but it's saved me a few times in the past.

i usually never carry cash. i never use atms unless im going some place that only accepts cash. i should carry it more often though.

We keep a fair amount out in cash. With the way things are going we are thinking we might need to increase that amount. It's usually enough for gas and a few groceries or a small emergency.

I always try to keep some "petty cash" on hand for emergencies......especially during hurricane season. However........while saving for the closing and down payment on our house, I locked up my debit card when leaving the house. I went to the bank on Monday mornings and withdrew my budgeted allowance for the week, and knew that if I spent it all before the following week, I'd have to drive the 37 miles, one way back to the bank to get more. I was amazed at how much less I spent knowing I had to make my cash last, and at how much I actually had left over at the end of every week! I've been a bit off budget lately but plan to get back to doing this next payday.

Josh and I were discussing the economy tonight and decided that we're going to stop all of our automatic withdrawal payments, and begin withdrawing the majority of our cash on paydays and actually buy money orders to pay our bills and save up as much as we can and keep our cash on hand. That may sound crazy to some, but I'd rather have to bury my money in a jar than worry about being unable to access it! I hate to be broke! It makes me panic! lol

I am bad because I am a debit card kind of guy. I live in a big enough area and it would be difficult to knock out the entire DFW metro area.

And no! I'm not disclosing a treasure map so you can come dig up my cold hard cash! ha ha ha

Good point, Connie.

We use the debit card for virtually everything. We keep only a small amount of cash on hand for very small purchases.

I pay just about all of our bills online, so I do not keep much cash on hand. I have been thinking lately about what would happen if we couldn't use our cards for everything like we are used to.

I refused to take a debit card when offered one by my bank. Another lesson learned from my grandparents...never trust a bank. My checks are direct deposited...and the day they are, I'm at the bank taking out the extra cash; leaving only enough, plus a few cents, in my checking account to pay my monthly bills...by check...through the snail mail. I keep all of my cash right here in front of me...in my desk drawer, so it's always available to me. Other than rent and utilities, I pay for everything with cash.

We do the same thing you do, Connie. I always want to use cash, but hubby likes that "keep the change" thing at BOA. I've started to secretly keep money in the house. sssshhhhhh.............. it's a secret.

when i have cash on hand, the kids NEED/want it:(
i use debit card to pay bills, pay for gas/grocies and etc.

I usually have some cash on hand, and usually more than mom.

We rely to much on our debit card, and we probably should have some cash on hand.

If it gets that bad, your cash likely won't be any good either. If our money is worthless, it does not matter how much of it we have on hand. Makes more sense to have things you can barter: salt, sugar, toilet paper... etc.

I guess we're old fashioned- We don't leave much money at all in the bank. The only money we leave in the bank is for Internet/Online charges (for which you can't use cash).

We always withdraw most of our cash.

you are so right. i have talked my husband into getting direct deposit and now that he's done it. i regret it. that's what we live on

We rarely ever have cash. Although right now, since we spent so much money coming up to the New England area, we took out cash so we could let all the receipts from the trip go through the bank in cash we missed any when balancing the checkbook.

These days I keep enough emergency cash stashed away to fly to Europe if I need to (if there is a family emergency) and to keep me afloat for two months.
I am working on stashing some extra groceries mostly staples and other household necessities as we speak. Living in Florida we have a small emergecny stash anyway.

I do hope there will not be a complete monetary collapse, but apart from anticipating that there could be days when cash is not accessible - we have hurricanes to worry about and I feel better that knowing no matter what, I have a plan and options that I created for myself.
I also still have a bank account in Europe, as well as cash in Euros, not just dollars.

I do anticipate that we will become a cash society, using debit cards and cash and that credit cards will only be available to the affluent and to businesses.

Then again, what do I know - all anyone can do is "Be prepared".

We always have to keep out a bit of cash , there are some places on the island where you can't use a debit card. We need to have cash on our ferry ( or else use a credit card - the old way - with a click machine and paper forms ) as they do not take debit . I don't like to have too much cash around as I tend to spend it quicker .

I never have any cash to speak of. I use my debit card just about everywhere

This is a good reminder, Connie, that we all need to keep a little cash.

Why in the world would you have a debit card? Would you carry all of your money around in your pocket? Cash, hummm, I have some laying around, in the form of loose change. Once I caught myself handing the cashier my credit card for a $.75 cup of coffee.

We rarely have any cash on hand. You make some good points. Maybe time to start thinking about having cash instead of debit. =)

yikes, this is scarey isn't it

I try to have a little. There's always bartering.
Good article Connie.

I'm trying to get prepared for something like that.

Never keep cash, but I know that you should always have a little on hand, in small denominations, in case of emergency.

I guess I must be an optimist, but I keep very little cash usually less than $100.00 on hand. I pay all my bills using the online bill paying service offered free by my Credit Union. I find that I budget much better this way. I probably write less than 7 checks a month. I save money on stamps and envelopes. I never have to worry about being late with a payment as I know when my checks get deposited and schedule my bill paying around those dated. Groceries are the most troublesome, you never know what you are going to spend as prices keep going up.

In my brother's church, members are expected to keep a certain amount of water and staple items on hand. After reading this post and the responses, I think maybe I will stock up on some staple items.