When it comes to everyday transactions, there’s been a long-running decline in cash use and a broad shift to e-commerce and virtual payments, accelerated by the pandemic, for the following reasons:
- Cash is inconvenient. Unless you’re paid in cash, you have to go to the ATM to get any;
- Coins are cumbersome;
- Cash can be lost or misplaced.
But there are also some benefits to using cash:
- Putting friction back into spending, which may help you spend less and save more;
- Because cash is finite, it forces you to limit your spending. I recently did an interview with CBC Radio about why “cash stuffing” is a popular budgeting trend;
- Anonymity. There are legitimate concerns around privacy and security of personal information when you go digital;
- Carrying cash is prudent in case of emergency, such as a Canada-wide internet outage. Many small businesses were cash only last Friday.
In 2021, according to the Bank of Canada, approximately 80% of Canadians said they have no plans to go cashless in the next five years. If you asked today, that percentage may be even higher!
When was the last time you used cash? Even if you aren’t a Rogers customer, how were you inconvenienced on Friday?
- On July 20 at 1:00 pm ET, I’ll be speaking at the next Elevate your business with Canada Life event: Financial literacy for the whole family.
If you’re an advisor, you won’t want to miss this opportunity to attend live and qualify for CE credits. Non advisors are welcome too!
- Following my own advice above, I hope to take some time off in August to enjoy our short Canadian summer and come back refreshed in September!
Have a safe and happy summer,