The convenience of person-to-person money transfers has made them quite popular among young Americans across the country. Mobile apps such as Venmo, Paypal, and Square Cash allow users to input their debit or credit card information, and send money directly from their banking account to someone else’s in a matter of seconds! For instance, if a group of college students go out and one forgets their wallet at home--but not their phone--they’d be able to pay back their friend who covered their dinner tab right then and there through any of the aforementioned apps. People essentially become more aware of how much they’re actually spending when they can see it physically.

For the sake of budgeting, author Rachel Cruze says in her video that that carrying cash actually instills a sense of responsibility in the spender. Many psychologists will also concur with this notion and reiterate that people become “more cognizant of [their] spending” (Simple Money Man blog).

How much will we actually use physical money in the future? With popular banking features such as direct deposit, most people don’t even have to go through the hassle of physically depositing their paycheck to their bank account. For the sake of convenience, carrying cash may soon become a thing of the past; but if spenders want to budget wisely, it’s worth it to have cash on their person so they can establish a set limit.

Questions:

• Can you think of a time when you were given, say, $5 for hot lunch at school and you had to mentally budget what you could purchase using only that amount?
• Do you think you’d be more cognizant of how much you were spending on hot lunch if you paid with a card instead?
• How much cash are you currently carrying? Do you have an amount you typically like to have on your person?
• Are you comfortable not carrying cash? Why or why not?
• In your opinion, what are the pros and cons of going “cashless”--not having physical money in your wallet?

…

If you liked this article, check out one of our older blog posts to learn how comfortable different age demographics are with carrying cash!

About the Author

Danielle Bautista

Danielle is a native of Southern California and a recent graduate from the University of Maine, where she braved the frigid winters—a feat in and of itself—and earned her Bachelor's degree in International Affairs. She has a passion for working with non-profit organizations and serving populations in underprivileged communities. When Danielle isn't writing NGPF blog posts, spearheading various outreach projects, or managing contests and flash surveys, you can find her doing some sort of outdoor activity, learning a new hobby, or cracking what she thinks are witty puns!

More posts by Danielle