How Much Cash is in Your Pocket?
Chances are it’s not much. And it’s becoming more difficult to use even if you do have some. But if cash disappears, it will have a negative impact on all our lives.
Just how little cash are we using?
Less and less. In some advanced countries, the percentage of cash used for transactions is now as low as 15% and disappearing fast.
Of course, digital payments are convenient; all your money accessible on a card, and no need to visit a bank to withdraw cash.
The result of using less cash is that there are far fewer banks and cash points available. In the next few years, few physical banks will survive and cash could simply disappear.
Can’t spend it even if you want to?
You’ve probably seen the notices. Cafes, parking, travel payments and more where it’s becoming difficult, impossible or just more expensive to use cash. We’re being funnelled into this new cashless world without our consent and through our spending habits.
Banks are not for everyone
Even in digitally advanced countries, there are still millions that simply prefer to use cash. Many don’t even have a bank account.
What’s the problem with getting rid of cash?
The older generation, find it stressful and worrying to use digital devices for payments. Homeless people are suffering as less cash is carried to give as donations and, to make it worse, these vulnerable people are unlikely to have a bank account or device to receive payments.
In this tough cost of living crisis, physical cash helps struggling families budget and avoid overspending. For children, it’s the best way to understand the value of money from a young age.
It’s all logged down
Every bank transaction is recorded. What you spend your money on can be monitored by government and others. It can be exploited for political and financial gain and potentially used to influence and control our behaviour.
It’s our Plan B – you know, just in case!
Cash works everywhere all the time, even when systems fail. It doesn’t need an internet connection and can’t be ‘hacked’.
The Disappearing Card Trick
Cash. It’s always worth the face value no matter how many times it is spent. A Dollar is always a Dollar, a Pound stays a Pound, a Euro is still a Euro.
But pay with a card, and after each use the money is worth up to 4% less (thanks to bank fees). It could lose a third of its value after just 10 uses.
Q: How do we Stop the cash getting trashed?
A: We must keep using it!
If we all continue to use cash, then banks and businesses will have to continue to support it.
Spending cash with smaller businesses keeps more of it in the local economy and helps protect jobs. Digital payments mean that many people are losing their livelihoods.
Unlike card payments, cash maintains its face value. (See inset box above).
Above all cash keeps us connected with our community.
Take our challenges to help keep cash alive:
Splash the Cash!
For starters…
- Get some cash and take it with you
- Always ask to pay with cash
- Help those in need with cash
- Pay for everything under a certain amount with cash
- Give children pocket money in cash
Or try ‘Advanced’…
- Ask a friend to join you in using cash
- Draw enough cash out and live a whole day or week on it
- Start a conversation with with businesses why they don’t accept cash – be prepared to walk out
- Give cash when splitting a bill
- Use your local bank
- Try bartering
Note down how much you manage to spend in a week with cash
Where was it easy, where was it difficult? Did businesses appreciate cash, or did they try to get you to pay with card?
Let us know how you get on. Did anything good or bad happen?
