According to year 2006 statistics by the Federation of Finnish Financial Services, Finns withdrew a total of 17 G€ from ATMs during that year. The sum of card payments was almost double, some 31 G€. In other words, for every 1 000 euros of purchases paid with cards, approximately 500 euros are still spent in cash.
For me, the proportion is very different – I almost never use cash. During the last 12 months, I can only remember having used cash at three points of sale. None of these accepted cards of any kind, but such shops are extremely rare, especially here in the Nordic countries.
I truly have no idea why people use such a huge amount of cash. Most individuals probably don’t enjoy standing in line at an ATM. Cash can be irrevocably lost or stolen, and the process of transporting bank notes so that they can start a new cycle at the hands of another cash dispenser user is very expensive.
Additionally, cash in your wallet is idle – it doesn’t work for you. Let’s say you buy stuff for 1 000 euros per month, paying in cash. Instead of giving away that money when shopping, you could keep it in a bank account where it would earn interest until the card invoices would be due. Maybe you could even find a better investment to make.
Paying in cash also does nothing to protect you from fraud. Card charges, on the other hand, can be disputed should you feel cheated. Cards usually also offer you complimentary travel insurance; some even come with more elusive perks, such as goods return guarantees allowing you a refund for almost any merchandise you choose to return within a given period of time.
Last but not least, credit card companies usually reward you for every buck you spend using your card. Some have their own reward systems; others give you e.g. frequent flyer miles or hotel points. Using credit card rewards, I have paid for flights and hotel stays as well as for miscellaneous goods I now have in my home.
I suggest tucking your billfold safely away in a seldom-used pocket, and instead making it a habit to always pay with a card. Chances are you will find your life a lot easier than before - or what do you think? Please post your comments!
External links:
Post a Comment