All the talk is that cash is on its way out – but there are times that using coins and notes is the better – or only – way to pay.
For the first time ever, more than half (52%) of purchases are via card, online or mobile. Though we still use cash more than any other type of payment, it’s a big change in how Brits pay for things.
I’ve written before how I’d love my wallet to be digital, but don’t write off using cash just yet. For now there are times we’ll still need cash. Here are five:
1. Using small businesses
Haircut? Dentist? Corner shop? I’ve been caught out a few times at these without enough cash to pay. If cards either aren’t accepted or you are
charged a small amount to use one, you’d have been better off with a note to hand.
2. Paying at restaurants
It’s statistically proven (ok it’s not) you can never pay your bill when you’re in a rush. You either can’t get hold of the waiter, or there’s something wrong with the tills. Or sometimes both, as happened to me last Friday!
Either way, having cash – and change – to drop on the table and just leave can be the only way out!
It’s also handy when you are splitting the bill. Many are happy to divide the bill evenly, but if you’re watching your money, having cash for the amount you paid means you can leave the others to figure out what they’ll pay. Just don’t forget the tip!
3. Getting discounts
Since most companies will get charged a fee for card transactions, it’s worth seeing if they’ll give you a discount for cash. If they do, it’ll probably be better than the gains you’ll get with cashback.
It’s a little different if a tradesman asks you pay “cash in hand”. It’s not your responsibility to make them declare their income – and pay VAT and tax – but you could argue you are morally obliged to not help them avoid their taxes.
4. Last minute birthday gifts
Vouchers are all well and good if you know the person wants to buy something in that shop. But if you don’t know what to get – or haven’t had time – there’s nothing easier than slipping a tenner inside the card.
5. Staying on budget
I know this is something that catches me out. Even though I’m saving most of my spare cash for my wedding, it’s easy to lose track of what I’m spending when I can just put it on a card.
If you are really tight on cash and struggle to make it to the end of the month, cash is a great way to manage your money.
Night out? Just take what you can afford and leave your card behind. Need to make sure you have enough for bills? Withdraw what you have spare and that’s all you can spend until next payday.
When else do you pay by cash? Share in the comments below.