Cash or Card? The Future Lies in Society's Hands

By Olivia Dandrow

Norma Tarmin, an 80-year-old retired service coordinator for South Shore low-income housing opportunities, prefers using her debit card at retail.

“I find it easier to use my debit card than trying to count the cash out at my age. I get nervous if there are a lot of people behind me, and I think that I’m holding up the line,” Tarmin said.

Tarmin will use cash at a drive-thru, small convenience store, or getting gas. However, she doesn’t like to carry a lot of cash. She’s afraid someone might notice and doesn’t want to risk being robbed.

“The benefit of using a debit card is that it’s easier. A disadvantage is that some places still only take cash. An additional disadvantage is that if the machines are down, you can’t complete a purchase.”

Tarmin is one of the growing number of Americans going cashless.

According to Pew Research Center, more Americans are joining the ‘cashless’ economy. The percentage of Americans who claim to pay for all or most purchases with cash continues to decrease, the Center notes. The number decreased from 24% in 2015 to 14% in 2022.

Household income also impacts purchasing decisions for many Americans. The Center found 30% of Americans whose annual income is $30,000 or less use cash for all or almost all purchases in a regular week. For those earning $50,000 or more, 6% use cash most frequently.

Janet Walker, a 60-year-old special education teacher, said she wishes she used cash more at retail. Then, she’d limit her spending to just the amount of money she has with her.

“When I buy with my debit card, which is most of the time, I feel more frivolous. I don’t spend rashly. I do have an estimate in my head of how much I want to spend. However, if I had a limited amount of cash, I wouldn't be able to spend beyond that,” said Dander.

Kyra Landon, a 21-year-old senior at Massachusetts College of Art and Design in Boston, said she uses a debit card 98% of the time.

“I don’t like to carry a purse. It’s easier to keep a debit card in my pocket. I used to take the bus to work and needed tokens or cash, but I can walk to work now,” she said.

For the places she shops, debit or credit is always an option. She doesn't shop anywhere that requires cash only.

Julia Martin, a 20-year-old sophomore at Concordia University of Wisconsin in Maquan, said she shops frequently on-line and uses her debit card. She keeps limited cash in her wallet, and she doesn’t have a credit card.

“I use my debit card in the checkout line most of the time,” she said.

“It’s faster than fidgeting for cash, and I keep my debit card with me all the time. I typically only use cash when I’m with friends at a restaurant, because it’s easier to split the bill. I can leave a tip without having to sign off on the receipt or wait for the waitress to give me back my card,” Martin said.

A benefit of a debit card is convenience. All of your money is on one plastic card. A disadvantage is that it’s easy to be stolen.

“If someone has your debit card, they pretty much have it all,” she said.

“Cash is inconvenient, and personally I’m more inclined to spend it if it’s on my person,” she said.

Twenty-year-old Julia Davis, a junior at Stonehill College in Easton, uses a debit card for everything.

“It’s very out of the way to take money out when I can just use a card,” said Davis. “It’s just easy. It’s more work to carry the exact amount for cash such as finding a $10 bill.”

Davis said there’s not a lot of advantages to using cash. Money can be dirty, especially since Covid. Some stores ask for cards only at checkout anyway. A disadvantage would be that spending happens more easily with a card since it’s electronic.

Davis works in retail at Tuesday Morning in Dedham, a home decor store. The majority of shoppers use a debit card versus cash or a credit card. People 60 and older tend to use cash.

“We’ll have customers with cash that’ll tell us to keep the change,” Davis said.

“Some elderly people use checks, but it’s very rare,” she said.

Kate Morgan, a staff writer at Unbiased, an on-line independent financial advisory, said there are additional advantages of going cashless. There is a reduction in crime, particularly robberies and burglaries, with people having less cash available. International travel is easier without having to exchange currency. Cards reduce or eliminate the need to store, protect, withdraw, and deposit actual currency.

Kate said the elderly may not be as comfortable with technology and less able to make the switch. People in rural communities might be vulnerable due to poor mobile access in their area. Going cashless could also be a challenge for small businesses. The fees charged for accepting mobile payments would reduce their profit margins, she said.

High schoolers on up are using debit or credit cards more. For the younger generation, it might be good to teach them how to use money for purchases.

Bowen Carter, 18, works at Fieldnstone Market in Marion as a shelf stocker. He has worked there for two months. This is his first job and he hasn’t had many opportunities to shop. However, when he does, he uses cash. He has a savings account but not a debit card.

When asked who benefits more in a cashless society, consumers or businesses or both, Akira Motomura professor of economics and economics department chair at Stonehill College, said, “businesses probably, especially the banks more than anybody because they can get certain fees. Some consumers might benefit but it would be nice to have the option to use cash even if you don’t have to.”

Who benefits by paying with a credit card? “For younger people it’s a way to help build up a credit rating,” Motomura said.

Motomura said he uses either cash or a credit card.

“I don't use a debit card because it goes into my bank account,” Motomura said.

Mark Kazarosian, associate professor of economics, also at Stonehill, prefers using a credit card because it’s easier and safer.

When asked, since so many people are going cashless, can we assume they feel confident about their data being protected, Kazarosian said, “No, I don’t think we can assume that. I think they do it because of the convenience.”

Who benefits more in a cashless society, consumers or businesses or both? “I believe both. It’s more efficient, less waste,” Kazarosian said.

There are many dangers of a cashless society. Some people are unable to be cashless, and they might be constrained because they don’t have a card; debit or credit. This is probably because they don't have a bank account. This may also be why people with lower income vs.

more affluent tend to use cash. Less affluent people may be without bank accounts and, therefore, don’t have easy access to cards.

Will the U.S. become a completely cashless society in the not too distant future? “I don’t think so. I think a lot of people will still prefer to use cash,” Kazarosian said.