*In an era dominated by tap-to-pay and digital wallets, carrying cash might seem outdated, but financial experts insist it’s a habit worth preserving.
A 2024 Federal Reserve survey reveals the average American carries $67 in cash, though its use is declining, with 83% of consumers using cash at least once last year, down from 87% in 2023. Even so, paper currency remains a reliable backup when technology falters.
As CNBC reports, Financial planners emphasize the importance of having enough cash to cover essentials such as food, gas, or transportation during unexpected disruptions.
“Generally, $50 to $100,” advises Christopher Rand, a certified financial planner in San Diego, highlighting the need for a modest reserve. Similarly, New York-based planner Melissa Caro keeps $60-$80 on hand: “If I lost my phone and needed a cab home, would I be covered? That’s my ‘panic point.’”
Real-world scenarios underscore cash’s value. Leslie Beck, a New Jersey CFP, recalls the chaos of Hurricane Sandy, when widespread power outages crippled ATMs and internet access in the NYC area.
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“When Hurricane Sandy hit the NYC area, ATMs were out, internet was down in many areas, and cash was king,” she says, recommending at least $50 to weather such crises.
Minnesota adviser Brett Anderson learned this lesson the hard way when a fraud alert froze his credit card during a purchase, leaving him stranded with less than $5. “It’s truly inconvenient and embarrassing,” he reflects. Now, he carries a couple hundred dollars for peace of mind.
However, experts caution against carrying too much. California CFP Tipiwa Walker warns that large amounts of cash are vulnerable to loss or theft, noting, “Cash simply does not have the protections that credit cards do.”
Bottom line: stash just enough green to bridge a digital gap, roughly fifty to a hundred dollars, then let plastic handle the rest.
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