If you really wanted to, you could probably get through life without using cash. A lot of people already do most of their spending without using currency, and it's getting easier to go cashless every day.
There are a lot of alternatives to cash: credit/debit cards, online bill pay, mobile phone payments, and old-fashioned checks can take care of almost anything you need. There's no need to go to a cash machine (or bank teller), and you never need exact change. What's more, you can often get an electronic record of every penny you spend.
However, life without cash is not perfect. Knowledge@Wharton has a nice discussion of the tradoffs of going cashless. For example, it's easy to overspend when you don't have to count out physical bills. Cashless payment methods also involve fees -- whether you see them or not, somebody's paying.
Knowledge@Wharton asks who benefits most when consumers go cashless? Banks certainly do well; their costs go down, and they get a ton of data about consumers (they know where you've been and what you bought, which is helpful for marketing). While consumers benefit as well, it's worth remembering that we pay a price by going cashless.
Further reading:
- Using Debit vs Credit Cards in Everyday Life
- Which Bank is Best?
No comments:
Post a Comment