Cash Versus Debit Cards
When making a purchase, the situation that crosses a person’s mind if using cash was a better option than using debit. In today’s society, numerous individuals use their debit card to make a purchase no matter how big or small. It would be difficult to track the amount of money a person spends if they are constantly using invisible money. The draining process from constant surveillance over electronic bank statements can be untimely, especially if those individuals are on the go. Carrying cash on a person is more effective than a debit card because it helps maintain an awareness of money spent, limits overspending, and prevents unnecessary fees.
For instance, a person immediately notices how much cash they are carrying in their wallet. This makes them conscious of what available funds they actually have. Pulling out the right amount of cash is done when it is decided how much is appropriate for the week. Although people may worry about spending too freely, a psychological thought barrier prevents them from doing what is best. Being conscious of how much cash is being carried tells him or her how much they are allowed to spend. This now means that every person will now think twice about a purchase. Not everyone has time, or patience to access their account through computers or their cell phones, especially during a transaction. Using an electronic form of payment will not help a person realize that small transactions will add up. Constant use in a debit card will result in forgetting the value of money. Carrying cash will help aware the society of how much money is actually spent. A person will notice the cash they use from everyday consumption. They can physically see that their amount of cash being handed off is lessening as they pay. This will help prevent temptation from impulse buying and reduce spending costs. Their needs and wants are also organized. Cutting personal spending will open up a new perspective and add positive numbers to the bank account. Not only will raising awareness on how much money is spent will benefit everyone, this will also limit overspending.
Importantly, the difficulty of overspending on one or more items is a problem that individuals present to this day. The desire to buy items that catch attention contributes to this also. The existing feeling that the item will no longer be at its sale price, urges a person to purchase it immediately. It is difficult to resist temptation and people end up buying things that they do not need. A person tends to forget what he or she came for in the first place. Having a shopping list is useless if they do not have a cash budget in mind. American society makes it hard by viewing commercials that feature a “tap and go” service provided through banks that leans towards a faster purchase without having to reconsider using cash. These commercials try to show that cash is extremely inconvenient, and slows the purchasing process down. The public does not know that having convenience with just a swipe or “tap” of a card can affect the overspending process with undesirable results. This can affect families that have a tough time controlling their spending habits. Emotional sadness comes with spending more than what was intended and will encourage a person to improve their spending behaviors. Consider using a debit when making an expensive transaction such as a television. Pulling out debit cards for any amount, that does not need an electronic payment such as groceries, gas, coffee, etc., is not any problem that cash cannot cover. Carrying cash will limit a person from grabbing miscellaneous items because they are aware of how much money they have, and will prevent them from overspending, making it the more responsible choice for everyone.
In addition to overspending, Automated Teller Machines (ATMs) that bear unnecessary fees surround Americans with problems to this moment. There are also fees that come from restaurants, and processing fees from previous purchases, etc., that have not yet posted to an account. Debit card users are more likely to overdraw their bank accounts by going overboard with small purchases. These added costs exist in bank statements and pass by unnoticed. The holding fees build up and eventually lead to over drafting the account. Therefore dragging on the headaches, and inconvenience to the people, by having to pay back the bank and balancing the account back to normal. Debit cards encourage overspending. People cannot grasp the flow of what comes in and out of debit cards, especially with the additional ease of direct deposit. One glance at the account is not enough to grasp the concept of how much is spent. The thought of having insufficient funds and paying for overdraft fees makes an adverse impact for each person. The realization of what is truly available becomes more difficult, as people try to keep track of their electronic funds. Theft is an added risk. People have more alternative ways to obtain pin numbers and using banking information for further identity theft. This results in having to cancel cards, opening new accounts, and having to wait for a new debit card. However, cash is available to anyone and enables him or her to withdraw from banks in case of an emergency. This is a guaranteed form of payment.
Clearly, carrying cash has an advantage over the use of a debit card. Cash creates disciplinary and self-control behavior than its luxurious competitor. If people were to rely more on cash, they would be able to buy what they need, rather than something they think they is essential. A “cash only” policy benefits each person by being able to refuse to spend on something they were not planning on buying. With the ability to cut spending habits, using debit cards may be convenient but also exist to create unawareness of what monetary funds are available in that person’s account. People should practice carrying cash to be able to keep track of what is spent. As a result, cash benefits the society in a way that saves money and creates an attention to how much individuals actually pay, will establish boundaries that keep a person from overspending, and can escape the burden of overdraft and processing fees. Unquestionably, cash is the superior decision.