These days, there are zillions of ways to pay for things. We’ve had credit and debit cards for decades, plus years of being able to pay for things with your phone or online. So when the beer cart comes around at the golf course, it’s OK not to have cash, because she’ll take debit or credit.

But some people still use cash all the time, and shun these other approaches. Save with SPP set out to figure out why.

According to CNBC, a mere 14 per cent of Americans still “use cash for everyday purchases.”

However, the network notes, cash can help you in some surprising ways. According to Cornell University’s Dr. Brian Wansink, “people who stick with paper buy fewer sodas (pops) and desserts at work. And workplaces, like restaurants and stores, are “’booby-trap hotspots’ — meaning, places where you’re more likely to eat unhealthy foods.”

And even more importantly, the article notes, it’s harder to part with physical currency than to tap with a card or phone. “That’s because researchers have found that paying with cash — physically handing over your money and watching it disappear – is painful,” the network notes.

And while your cards tend to have high limits, cash is cash. You can budget easily by “withdrawing a pre-determined amount of money for the week,” and committing to only spending that amount, the article explains.

The article’s final point – you can make a deal with cash. Someone offers you something for $30, you can say “I’ve only got $20,” and in a lot of cases, they’ll take it. This sort of thing doesn’t happen with plastic, the article notes.

Over at the Pocket Sense blog, a couple more ideas in favour of cash are presented. What better way is there to spend within your means than to go cash-only, the article asks. As well, the article notes, there’s no interest charge or long-term debt associated with a cash purchase.

“Interest rates, annual fees and other charges can make a consumer’s monthly credit card bill skyrocket and get them into a vicious cycle of debt that is difficult to overcome. By paying with cash, consumers may protect their credit and avoid unneeded debt,” the article notes, citing the fact that in the U.S., Americans have rung up more than $1 trillion in debt.

Another sort of “wow” aspect of cash use is that it protects your privacy. “The Federal Trade Commission reports that fraudulent use of credit and debit cards is taking place every single day. By using cash, you protect your identity and your credit,” the article notes.

Save with SPP has a number of friends and relatives who are great with debit and credit cards, paying them off in full each month and getting cash back and points and other great perks. There are also some insurance benefits of paying for things with plastic. But for the rest of us who tend to spend first and worry about paying later, moving to an all-cash approach might correct some bad habits and balance the old chequebook.

And that, in turn, might free up a little more money to save for retirement. A wonderful place to park those extra dollars is the Saskatchewan Pension Plan. Even small amounts will grow over time at an impressive rate, and when you’re ready to enjoy retirement, the SPP will turn your savings into a steady monthly income. It’s win-win.

Written by Martin Biefer
	Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock. He and his wife live with their Shelties, Duncan and Phoebe, and cat, Toobins. You can follow him on Twitter – his handle is @AveryKerr22