It’s Friday and time for our word of the week –the word this week is Cash.
I chose cash because it’s quickly becoming an endangered species. I read an article this week in the technology section that was titled, “The Death of Cash.”
In the article it talked about how technology and the digitalization of payment and fees was making it better and easier to make purchases without, as they called it, ever touching unhygienic, bacteria-circulating dollar bills. They also made the case that cash costs us a lot of money, point to a recent study by Tufts that showed that consumers lose about $200 billion annually by using cash. This includes ATM fees, and other losses associated with cash use, like the time and transportation it takes to drive to the bank. Finally, they argue that “cash derives its value from the information it contains and is a classic information good, which can be replaced by a digital substitute.”
But there is another side. And, that is the more we make case less visible, the greater the temptation to let it manage us instead of the other way around. We all know that it is much more difficult to give up cash at the register than to swipe a card. That’s because cash is real, it’s tangible and we are connected to it in the moment. For many people, the move to the digital age of spending will be problematic and in some cases, cause them to spend a lot more than they should, just because it’s easy.
Our word of the week cash. And that’s the minute for today. Like the Minute? Subscribe to it and leave us a review on iTunes or your favorite site so you never miss an episode.
Thanks for listening and as always remember that minding your money really is the path to a richer life!