Skip to main content

Paper or Plastic

Most of you know that I am a major fan of Dave Ramsey and just about everything he stands for. I spent many an afternoon working from home while his program played in the background. In fact, I would still be listening in the afternoons had my local radio station not shuffled their lineup. I do, however, still catch a little bit here and there. Sometimes I even catch a segment on YouTube. And, that’s exactly what happened the other day when one of the stories I came across made my jaw hit the floor.

Now, I know you’re waiting with baited breath, but I must totally switch gears here and share another short story first.

I got the same start in the workforce that about 20% of America did–McDonalds. It was 1984. I was 16. Minimum wage was $3.35 an hour (REALLY dating myself, here). And the only payment we accepted was CASH. I remember hearing that in the not-to-distant future we would carry around plastic cards (like a credit card) that would automatically deduct what we spent from our bank accounts. I could hardly believe it. You can imagine my surprise when debit cards became a main source of monetary exchange in the early 90s.

“Nice stories, Meagan, but what does one have to do with another?” I’m getting to it. Hang in there with me.

The Dave Ramsey segment shares a video from a social media site. The woman in the video purchased something from a store with cash. Because she used cash, the cashier told her it was like getting it “free because cash is not real money.” WHAT?!?

Now, I understand that maybe using a debit card is going to FEEL different than using cash. In fact, statistics show that people will spend 83% MORE with a card than they will with cash. Why? Because it doesn’t FEEL the same. Yes, we are living in a digital world and e-currency is the primary form of trade, but this does NOT mean that cash has no value, nor is it FREE.

In fact, using cash and only cash can be a great way to save money AND teach good money habits to your children. Make sure your kids understand cash–different denominations, where it comes from, how it’s used. Assuming children only need to understand electronic money would be a great disservice.

How does one teach that? That’s coming next week. Stay tuned. It’s a doozy!


Comments

Popular posts from this blog

It Happens Like That

And, in what seems like the blink of an eye, Memorial Day is over, school is out (or almost out), and my favorite time of the year is here! I love summer. I love it when the sun comes up early and wakes me. I love flip flops and shorts. I like to be warm (ok, not HOT, but warm). This is when I thrive. And I think it’s an excellent time to take a vacation or road trip. That being said, I plan a long time in advance for a vacation because I won’t finance one–and I’ve taken some pretty amazing vacations! I don’t usually just take off on last-minute road trips, either, but I’m learning to be more flexible in my old age. So I have done that on occasion, too.  Now, this blog post isn’t about the last-minute drives I’ve engaged, cruises I’ve embarked, or the countries I’ve explored (being a debt-free, self-employed, budget-loving, young, empty-nester has its perks!). This post is about getting you to a point where you, too, can take vacations without stressing about paying for it late...

Timing is Everything

I was told that a good time to buy a car is January or February. Why? I would guess it’s because many people are financially destitute right after Christmas (because they have not yet been introduced to my blog!) so car sales are down. I do think there is another reason. I think that most people have yet to file their taxes and receive their tax returns (a.k.a. overpayment that they loaned interest-free to the government ) with which they plan to make a down payment. Now it’s March, and many people have already filed their taxes and received said overpayment that we common-folk refer to as a return, and it’s burning a hole in their pockets. This can be good news for you if you have things you want to sell. Now is the time to capitalize on the extra influx of cash. What do you have around your house that you no longer use that you can sell? Speaking as someone who has done this very thing, I must warn you. Selling stuff you don’t need anymore and collecting the cash can be addicting...

Know Your Limits

When I was 17, I drove a 73 Nova. It used to be really easy to do things like changing taillights myself. That is no longer the case. If I tried that on my later-model vehicle (which is more like a computer than a car), I’d do more damage than good, because there are some thing you should just not do yourself. It will cost you more in the long run. That being said, there are probably some things that you usually pay someone else to do that are not getting done right now. My advice is to just be patient; depending on what it is and your skill level, it might end up costing you more to fix your mistakes. Let’s discuss some of those… Obviously, most if not all car repairs are just better done by a licensed, trained professional, including oil changes. They can also correctly dispose of used petroleum products. Depending on your tax filing status, a professional can help you avoid overpaying the IRS. I remember cutting my daughter’s hair when she was little, and I made a me...