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The Advantages of Paying with Cash

woman counting money

Debit cards are convenient. Just swipe and go. Even more so for their mobile phone equivalents. We like fast, we like easy, and we like a good sale.

But are we actually spending more by not using cash like we did in the good old days?

When using plastic, the reality of the expense doesn’t sink in until the statement arrives. Even then, it may not carry the same weight. After all, you only need to make the minimum payment, right?

With cash, we’re more cautious – and that’s not a bad thing.

Try this experiment for one week: Pay only with cash.

When you pay with cash, the expense feels real – even when it might be relatively small.

Hopefully, you’ll get a sense that you’re parting with something of value in exchange for something else. You might start to ask yourself things like, “Do I need this new comforter set that’s on sale – a really good sale – or do I just want this new comforter set because it’s really cute (and it’s on sale)?” You might find yourself paying more attention to how much things cost when making purchases and weighing that against your budget.

If you find that you have money left over at the end of the week (and you probably will because who likes to see nothing when they open their wallet), put the cash aside in an envelope and give it a label. You can call it anything you want, like “Movie Night” for example.

As the weeks go on, you’re likely to amass a respectable amount of cash in your “rewards” fund. You might even be dreaming about what to do with that money now. You can buy something special. You can save it. The choice is yours. Well done on saving your hard-earned cash.

Femi is a financial professional on a mission to educate 30 Million families in North America by 2030. Find more about what she does at

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