Cash Versus Debit Cards

Today someone pointed out to me that I don’t carry cash. They noted that I always use my Debit card and that perhaps I would have better spending habits if I just carried cash instead.

First, I hate cash. A lot!

Second, I don’t know if cash would really change my spending habits. But it did get me thinking about that the various pro’s and con’s to doing either would be.

Pro’s to cash:

You are limited to spending on the cash you have on hand.

You have a physical reminder of how much you have left.

You look PIMP to other people when you pull out a wad of bills.

Con’s to cash:

You are limited to the cash you have on hand… sucks if it costs more

Counting can be a pain when you used up all your large bills

Change… I don’t use it. Except for the turnpike… sometimes

You are a bigger target for getting mugged… OHHH… girl scout cookies. You can’t use the excuse “I don’t carry cash” to turn on those wonderful girl scout cookies anymore

Where did all your money go? (read the pro’s of a debit card).

I feel compelled to spend all of my cash.. then get more cash out…

Now let’s look at the Debit Card. They have no real cash value. They have you banks name all over it, but I love mine.

Pro’s to Debit Cards:

Never worry about how much cash you have Bank Statements help you understand where your money went ($500 on 7–11 trips this month is bad).

Buy things ONLINE, over the phone, in person… Visa… Everywhere you want to be (except home).

Curbs Impulse buying from cash only junk.

Con’s to Debit Cards:

Vending machines… You know what I’m talking about…
Identity Theft…

Overdraft Fee’s.

Drive Thrus are a gamble.

Mine breaks in half after about 6 months of use.

Ok, so my debit card wins by 1. Even if it didn’t I would still use my Debit card all the time. The debit card is the best and the worst thing to ever financially happen to me. The key for me is learning to use it responsibly, and constantly check my bank statements. Thank god for Online Billing!