Cash Money is Irrelevant

Today's world is moving closer toward a cash-less society. The amount of debit cards and credit cards being used is increasing every year. Banks are pushing customers to direct deposit and online bill pay systems. Many are even penalizing those who come in to see tellers too often. Gift cards are even becoming the Christmas gift of choice for some. So, why do we even need cash money?

I have a single dollar bill in my wallet. I used to go to the ATM and get a few bucks out here and there. If I didn't have anything in my wallet then I would refuse to spend money. Every week I find myself using plastic for cheaper and cheaper purchases. I cannot even remember the last time I had more than twenty dollars in my wallet. Statistics are showing more and more people are doing the same thing I do.

Many are pushing for the Fed to cut out some types of currency. The Fed has been producing gold dollars for a decade now. It would be easier to spend these instead of keeping bills in our ever expanding plastic wallets. Too many people, including myself, have chosen to collect these coins instead of spending them. Even as a banker, I see no dollar coins coming in from the Fed. Pennies are more expensive to make than they are actually worth. It would make more sense to trade them. Still, the Fed keeps on producing them.

It doesn't take much to initiate a change, but it takes a lot more to implement and execute that change. I am not pushing to get rid of currency altogether. Currency should be made easier to keep and spend or plastic will be the currency of choice pretty soon. Many people still like the feel of paper money and the sense that if they see it then they really have it. The only people who really seem to carry money are the elderly, corrupt government officials, and rich college kids looking to buy little bags of marijuana.

Currency still plays a critical part of our everyday lives. Whether it is to buy bread, gas up the car, or stuff under the mattress, currency will remain the money of choice for some. Sure, it might make sense to clean up our currency to make it fiscally responsible. Still, currency will never go away even in today's plastic world. Is cash money irrelevant? The choice differs according to who is asked; however, even after typing all this up, I am not convinced either way.