Which is better, cash or card? There are many reasons why people these days prefer card over carrying cash around but I personally believe there is room for both. Over the course of my budgeting life, I have tried incorporating cash into my budgeting system and it has worked wonders for helping me control overspending in a couple of categories which I always overspend in (i.e. food and shopping). But once I got a hang of my spending through the use of a tailor made budget, I reverted back to my love of using a card and swiped away.
Recently I shared a post on how to use your credit card responsibly and I had a mixture of responses as to why people don’t like using a credit card and the most common theme was people don’t think they have enough willpower to stop overspending. I can definitely understand both sides of the coin and believe that people who don’t have the willpower to stop overspending on their credit card should stick to cash or debit card spending but preferably cash because once you have used it up that’s it.
WHICH IS BETTER, CASH OR CARD?
Personally I prefer to use my card more than cash purely because local banks have been closing down and most ATMs are charging a fee to take my own money out plus over the last year and half, it’s been about hygiene. Whilst I am not entirely against the use of cash, the need to carry hard money in your wallet is no longer a necessity not even for emergencies because almost everyone everywhere accepts debit and credit cards. But I think it is still important to discuss the topic of when it is best to use your card verses your cash and if you use a card which is better, debit card or credit card.
So, when it is best to use your cash? I personally believe the best time to use your cash is when you want to limit your spending. If you watch my monthly budgeting videos over on YouTube, you will know that I struggled with staying within my food budget. I knew something had to give so I tried what is called ‘an all cash diet‘ and this simply means you use only cash for that category. At the beginning of every month I would withdraw £100 (I had a budget of £200) and planned my meals for the month and set myself a limit of £20 a week to spend on food. I quickly saw how effective this was and within a few months I was spending less than £80 a month on food instead of blowing my £200 budget.
When is it best to use your debit card? I love my using my debit card more than cash or even credit card because it helps me to stay in control. You should use your debit card for everyday spending like doing a food shop especially if you have a budget that you stick to and paying your regular bills by setting up direct debits. I personally use different debit cards for different things, for my everyday spending I use my Monzo card because I have set-up pots for each of my regular categories then my main current account for bills and receiving income. Debit cards are one of the best ways to avoid getting into debt because if you don’t have money in it (provided you have no overdraft) you can’t spend what is not there.
When should you use a credit card? Personally I use my credit card for three reasons (1) on my American Express card I earn AVIOS points which I use to book free hotel stays and flights and for my Lloyds card (2) I use it to earn cash back on all my spending and this money is the used to pay back any balance on my card. Finally (3), I use my credit card for larger purchases and for protection against theft especially when I am travelling. I must reiterate again that YOU SHOULD NOT GET A CREDIT CARD IF YOU CAN NOT USE IT RESPONSIBLY because you will go into debt and that will impact your credit history.
So, having shared my personal thoughts on this topic, which is better, cash or card? I know people who will never touch a credit card and I also know people who use a credit card for everyday spending and then clear the balance before their statement date. Neither is wrong, it is all about how you manage your money, especially if you are on top of your personal finance then there is no reason not to use your credit card. The statement, “cash is king is no longer true, it’s more like card is king” and it depends on how you use it.
Milton Coyne says
I actually preferred cash because i can handle my expenses more effectively.. Although having card comes with many advantages too but i am just afraid to overspend because of it lols
Renata - www.byemyself.com says
I totally prefer cards – but I’m also good with money so there is no danger of spending too much. I’m glad that now with covid, even in Europe cards are becoming more and more popular.
Rosey says
I prefer the card because it has precautions cash doesn’t. Maybe not foolproof, but still something… My son’s barber didn’t take my card recently…cash only. But there were no signs up to say that and I didn’t have cash. I guess it’s good to keep a little on you just in case!
Blair Villanueva says
I rarely use cash nowadays especially now that I’m here in Australia, where majority of the transactions are via EFTPOS (card transaction). The only occasion we use cash is when we visit the Sunday Market for small shops. Cashless transaction is better and convenient.
Elise Ho says
Cards keep you better protected. Carry a little cash but mostly use card
Fransic verso says
I would prefer card as well It’s safe and always fast to use it. Don’t need to count and don’t need to worry about anything.
Fransic
Stephanie says
I never have cash on me. I use my credit card for everything but I also pay it off twice per month. We like getting those airline miles for all the traveling we do as a family. My dad only uses cash and always gets onto me when I don’t carry any.
Patricia Chamberlain says
I rarely use cash anymore! My card is just all around easier!
Matt Taylor says
I tend to prefer card more, but also like to have a little cash on hand as well. You are right, there is indeed room for both!
kidneyfornikki says
I rarely use cash because I find it easier to spend without knowing where I am spending it! I tend to buy food and snacks if I have cash.
Nowadays many places don’t want cash either — some of that is due to COVID but it was going on before the pandemic as well.
Alice Mola says
I think that we are slowly evolving into a society where cash is becoming less and less accepted. Today at my dining hall on campus I was denied paying by cash and had to ask a friend to cover for me with her card, which shocked me!