|
|
|
|
|
|
Cash or Debit? How to Choose
Debit cards. Chances are that if you don’t already
have one, you know a friend who does. These little
pieces of plastic are hugely popular. Using a debit
card is like spending cash because the money comes
right out of your checking account. But why not just
use cash all the time? Debit cards and cash both have
their own advantages and disadvantages. By examining
them, you can decide when to use your debit card and
when it’s better to spend cash.
Debit cards are great financial tools that can help
make life simpler and more convenient. Some advantages
of using a debit card instead of carrying cash include:
-
A debit
card is more protected than cash in case of theft.
While a thief can easily spend your $20 bill anywhere,
he or she will have a more difficult time using
your debit card because of your secret PIN and your
signature on the back. Also, you can call your card
issuer right away if your card is stolen and the
card can be canceled before the thief has time to
use it.
-
When
you use a debit card, you don’t have to worry
about lugging around the loose change that accumulates
when you use cash.
-
If you
use a debit card for most of your transactions,
you can look at your monthly statement and have
a great record of where you spent your money that
month. This record can help you determine ways to
save money in future months.
-
If you
carry a debit card, you don’t have to worry
about running out of cash and not being able to
find an ATM or credit union branch nearby.
But, when using a debit card, you have to be careful
to avoid potential pitfalls. Sometimes cash is a better
bet. Some benefits of using cash and drawbacks of
debit cards include:
-
If you
spend cash, you don’t have to record every
transaction in your checking register and you don’t
have to worry about losing track of receipts before
you’ve recorded them.
-
If you
spend cash, you actually see the money leave your
hands and may be more conscious of how much you’re
spending as opposed to using a debit card and not
seeing money at all.
-
Some
places still don’t accept debit cards and
you’ll need to have cash to make a purchase.
-
Since
your debit card takes money straight out of your
checking account, you have to always keep in mind
how much money you have and make sure you don’t
overspend. When you spend cash, you can carry a
limited amount and make sure to stop spending when
you run out.
Adding a debit card to your financial portfolio will
give you added flexibility and convenience, just remember
that cash is still necessary in certain situations.
No matter which you choose to use, cash or debit,
make sure you always spend responsibly.
|
|
CU Succeed®
©2008 All Rights Reserved.
|
