How many people in New Jersey still carry cash?
It seems so odd to pay in cash anywhere for anything these days. It seems like people look at you like you haven't stepped into the modern world, or you don't know how things work today.
Well, we all know how the modern world works today. The banks and credit card companies are swimming in cash, yours!
A lot of restaurants for eat-in or takeout will offer you a 3% discount if you pay cash. They don't want to pay the 3% credit card fee and they won't pass it on to you if you simply use cash.
Most people don't carry any cash or a small amount for tips or small transactions at a convenience store or coffee shop. I have a billfold with a debit card, two credit cards and a few hundred dollars in cash. Yes, that much cash.
With all of the driving I do, I need to fill up the tank about three times a week. I NEVER use anything but cash at the gas station. Some stations still charge less for cash but mostly I do it for safety. Lots of people feel more secure using cash for gas.
Some small shops only take cash, much to the annoyance of so many who only use plastic. The small mom-and-pop ice cream shop up the street only takes cash. When people complain they direct them to the 7-11 next door that has an ATM. Problem solved.
I used to keep an emergency $20 in my car. Now of course with inflation, it's got to be a $50. Whatever amount of cash you keep handy, it's a good safety net. Experts recommend carrying anywhere from $20 to $100 on any given day.
There's no way to accurately determine if any one state like New Jersey tends to carry cash or more cash than any other, but the national stats are in. Fewer and fewer people have any cash on them. The percentage of people who never use cash for any of their purchases in 2015 was 24%.
In 2022 it jumped up to 41 percent. Back in 2015 24 percent of people nationwide used cash for most or all of their purchases. In 2022 that number dropped to 14 percent.
Clearly more and more people ditching the dollar for the convenience of plastic or Google and Apple pay.
Cash can get you a better deal sometimes at a small business. Small businesses can save by taking cash. Imagine what each of them is paying on a monthly basis in fees at 3% per transaction through their Point-of-Sale machine.
As an example, if they have $50,000 in sales & 90% are by card, they are paying $1500 in fees in ONE Month. $18,000 in a year! That comes out of their income every month. That would go a long way to helping that small business provide for its family.
The pandemic may have accelerated the use of cashless transactions where people were more cautious about handling dollar bills and hand-to-hand contact. Whether it's convenience, or safety and security, fewer and fewer people carry or use cash.
There's no telling where the number will bottom out. In the meantime, I will continue to carry cash for my gas fill-ups and anything that may pop up where cash is the only answer.
LOOK: Here are 25 ways you could start saving money today
Gallery Credit: Bethany Adams
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Opinions expressed in the post above are those of New Jersey 101.5 talk show host Dennis Malloy only.
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