Some Occasions Where Credit Doesn’t Cut It

In the world of business, as in home finances, cash is king. As useful as lines of credit can be, there are certain situations in which it’s beneficial for you and for those with whom you do business with to use cash. This may be contrary to claims made by Visa earlier this year.

Indeed, Chief Executive Al Kelly stated that he wanted to “put cash out of business” as Visa launched an initiative to incentivize American small businesses to eschew cash as a form of payment. This makes sense for Visa certainly, since they make money every time they facilitate a transaction.

Indeed, when we look around us the deck seems stacked against those of us with a soft spot for bills and coins. From credit and debit cards which enable us to spend money with just a tap of a card on a reader, and apps like Apple pay which make spending as easy as holding our thumbs over a scanner.

Despite these impressive initiatives, geared towards nudging us away from the familiar bills and coins there are some occasions when using cash is the only way to go, especially with so many ways to get fast cash now. It’s always handy to keep some cold hard cash in your wallet for certain situations, such as these.

Spending In Front Of Your Kids

We all want to make sure that our kids grow up financially aware and responsible. Money is a difficult concept for a young mind to grapple with, and it’s mystified even further when it’s reduced to the tapping of an app or the swiping of a card. Exchanging cash in front of them helps to understand the core concepts of gain and loss that go with cash transactions.

This will enable them to grow up with a healthy respect for their money, and prevent them from subconsciously seeing credit or debit cards as money for nothing.


When you receive exceptional service in a bar, hotel or restaurant, it’s not uncommon to want to give the professional who’s looked after us a little something extra to show that you appreciate the effort. Many establishments allow patrons to tip using card machines or even add a voluntary service charge to your bill.

While this is certainly convenient, it does not always guarantee that your tip reaches the right person. Different businesses and franchises have different policies for the distribution of tips and as such the best way to ensure that the right person gets the tip is to put the cash in the person’s hand.

Buying From Small Businesses

We all do our best to support small businesses where we can, for the betterment of the economy and to show that despite the economy’s rigging in favour of big corporations, we should all do our bit to keep the flame of entrepreneurship alive.

Although a great many small and independent businesses accept payments via credit and debit card, it’s always advisable to pay cash where possible. Businesses pay a surcharge on card transactions which can eat into their margin over time while paying cash ensures that businesses have the liquidity that they need to stay agile in a competitive marketplace.

To ensure that local businesses prosper, always pay cash where possible.

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