Using Cash Can Cost You More
Written by Your 5News Team
Last updated on September 26, 2013 @ 7:37PM
Created on September 26, 2013 @ 6:49PM
A recent study shows the use of cash is costing Americans $200 billion.
This translates to roughly $1,700 per household. The study done by Tufts University revealed it might be cheaper for people to use their card because the time spent getting cash adds up.
Researches came up with the results by putting a dollar value on people's time.
Other studies have shown some people can cut spending by 15% by only using cash, but the time spent getting the money can cost you a lot.
Bill Hardekopf is a financial expert. He said, "The average American spends almost half an hour a month traveling to get cash. Time is money and because it takes you about half an hour a month to go get the cash, that ends up costing you quite a bit of money."
The $200 billion cost includes $8 billion Americans spend in ATM fees and $40 billion in cash stolen from businesses annually. The study also shows approximately 80% of ATM transactions are cash withdrawals.
Monongalia County resident Barbie Hawthorne said she's been using her card exclusively for years. She believes it's cheaper, safer and easier.
"I use my card because it's more convenient and it's also easier to track. I can get onto my bank account and look at things and update easily," said Hawthorne.
Other people said they'll always use cash because it gives them more control over how much they spend.
"I prefer to use cash because you get a real set amount. You know how much money you're spending, like say if I have $50 in my pocket I know that's how much I'll spend," said Ohio County resident Zach Foose.
Other people said these statistics will make them take a closer look at how much they spend.
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