Does anyone use a cash only system? DH and I use our debit cards like they are going out of style and I would really like to go to using mostly cash (and pay bills online still). I just am not very comfortable using cash all the time since we never have it on us, but I also don't want to be running to the ATM every day.
Anyone with a cash system please share tips..
LOL! I was in banking in the dark ages, too! I remember when we 1st got a fax machine in the loan department - the only other one was at a car dealer. Thanks for the memories - made me giggle!
Quoting specialwingz:Yeah, I was in banking for 10 years in my early lifew. But, that was waaaay before debit cards were even a glint in anyone's eye and checking accounts were the thing to have. Back then, checks were physically handled at the bank, signatures were actually compared on each and every check! If you had 3 occurences where you filed a check where the signature didn't match the one on the signture card, you lost your job! Yep, old times. LMAO
Quoting jessicaaris:
Wow I used to work in a bank and I didn't know that. Thanks for the info.
Quoting specialwingz:
~ Julie ~
This is great information! I didn't know it either, and will try to change my ways and use the credit option.
Quoting specialwingz:You'd be surprised by the number of places across the U.S. that are refusing to take cash anymore. That number grows on a daily basis. It's supposedly to cut down the crime rates in the robbery department. So, don't go cutting up those debit cards.
I remember when debit cards first came out. I was bound and determined I was not converting to it. LOL. Now, it's all I use. It's the same as cash. If the money isn't in your account, the purchase won't go through. It is safer to use your debit card than to carry around cash. No matter how good the area you believe you are visiting/living.
My DD had her purse stolen. We learned a very interesting tidbit from the bank that they don't tell you if you don't know to ask. When, using your debit card, when it asks you if you are using it as a "debit" or a "credit"...always choose "credit". This does NOT mean you are using a credit card. It still reads your debit card as the debit card it is. But, it forces you to sign for the purchase instead of using your PIN #, which is now in danger of being "skimmed" in numerous ways. By, treating the purchase as a credit (but it's still a debit, I can't stress this enough) and signing for the purchase, this protects you through your bank. Purchases that are processed in this way are covered by the FDIC insurance your bank carries whereas "debit" processed purchases are not. In the event that your card gets stolen or you are a victim of identity theft, the purchases that are processed as "credits" are protected and you are NOT responsible for them. There is an actual signature that can prove or disprove who used the card. A debit card transaction simply relies on whether or not the establishment had cameras and caught the person who used your car. Then, and only then, is a purchase on a stolen card covered.
I hope that made sense. I'm still working on my 1st cup of coffee. LOL. Let me know if you have any questions. We went throught the wringer with DD's stolen purse situation. But, we learned A LOT! =)
~ Julie ~
We use pretty much all cash system. Our bills get taken out automatically. Then I have envelopes for everyday expenses and bills like water and trash. I just pay them cash when it's due. When I go to the grocery store I take my grocery envelope. When I know I need gas I take that envelope ect. I only use what is in the envelope. We still have one debit card and the only time we use it is to rent a red box. Other than hat the money in that checking account is for bills only. So far this has worked for us and has really taught us to only buy things we need. It's hard seeing that cash dwindle down so therefore we think twice before spending it.
When I was using the debit card, I was constantly taking money out that was allocated for bills. Then we had to turn to credit cards. it was a downward spiral. I am so glad we are done with plastic.
we just started this month. We have an envelope system, write out our budget for the month in excel (Steady paycheck, so no surprises). At each paycheck I'll go to the bank, write a check for X amount decided by the budget and split it into our envelopes. At first I told DH I didn't want to do cash for gas because of the kids, but in order to stick to a budget we really HAVE to. I usually fill up at our Kroger, so I can just wait for the pump next to the booth, or when I go grocery shopping (which I do by myself). When I thought about it, it became a non-issue because of where I fill up 99% of the time. Other places you can get a "cash card" where you don't have to go inside until you pump.
If you do a serious cash budget, you shouldn't have to constantly go to the ATM. All your cash will be at hand for the most part (certain things like gift and travel that we don't get into often have special places in the house). It's a good idea to keep a bit of cash around the house anyway in case of emergency. When we had the tornados in 2011 everything was cash only - thank goodness we had some or we'd have been SOL.
Edit: I wanted to add you don't have to carry ALL your cash with you. Like if I go to the grocery store, I'll only need my "food" envelope. IF we go out to dinner or something we'd take our "Fun money" envelope. Keeps you from spending out of category too.
Be careful using your debit card as credit. The holds are usually 2-3 days, sometimes longer. If you use your debit card as credit at a gas station it might hold $50, even if you only purchased $25. Debit will come out same day. Also check your bank fees. When I first had my debit card we got charged a quarter for each use for either debit or credit (I forget now, it was ages ago). if you get a fee for using one or the other, try to go to the other one. It's coming back in style for banks to charge for using debit cards, so please pay attention to your bank's policies! Also, thieves
will probably have an even EASIER time using a debit card as credit.
Half the time the cashier doesn't even look at the card, and I can put a
line on those signature things and it goes through.
The biggest problem for debit cards to me, is that it's "invisible money". Yes, it's linked to your account, so "yes" you can't use it if the money isn't there. HOWEVER. if you only knew the number of times I've had to deal with overdrafts fees on 3 or 4 small debit purchases(like less than $10) because a check clears the same day you'd realize how quickly they can become a problem (even if the OD fee is smaller, 4 small purchases can cost you over $100 in fees). I suggest using cash for small purchases (like getting a soda or fast food or something), even if you can't give up your debit card for gas and groceries - just give yourself a set amount each week/month. I know things are changing, but banks are still putting through largest purchases first. If you don't have a good handle of your budget, debit cards can still dig you a deep hole very quickly! I'd not cut it up, but the less it gets used the better.
Quoting specialwingz:You'd be surprised by the number of places across the U.S. that are refusing to take cash anymore. That number grows on a daily basis. It's supposedly to cut down the crime rates in the robbery department. So, don't go cutting up those debit cards.
I remember when debit cards first came out. I was bound and determined I was not converting to it. LOL. Now, it's all I use. It's the same as cash. If the money isn't in your account, the purchase won't go through. It is safer to use your debit card than to carry around cash. No matter how good the area you believe you are visiting/living.
My DD had her purse stolen. We learned a very interesting tidbit from the bank that they don't tell you if you don't know to ask. When, using your debit card, when it asks you if you are using it as a "debit" or a "credit"...always choose "credit". This does NOT mean you are using a credit card. It still reads your debit card as the debit card it is. But, it forces you to sign for the purchase instead of using your PIN #, which is now in danger of being "skimmed" in numerous ways. By, treating the purchase as a credit (but it's still a debit, I can't stress this enough) and signing for the purchase, this protects you through your bank. Purchases that are processed in this way are covered by the FDIC insurance your bank carries whereas "debit" processed purchases are not. In the event that your card gets stolen or you are a victim of identity theft, the purchases that are processed as "credits" are protected and you are NOT responsible for them. There is an actual signature that can prove or disprove who used the card. A debit card transaction simply relies on whether or not the establishment had cameras and caught the person who used your car. Then, and only then, is a purchase on a stolen card covered.
I hope that made sense. I'm still working on my 1st cup of coffee. LOL. Let me know if you have any questions. We went throught the wringer with DD's stolen purse situation. But, we learned A LOT! =)
Well, mine won't overdraft. And, I've never had a hold of more than $1 on a purchase. I've heard others mention this. But, I've used my debit card with credit processing for over 10 years and in many states. Still never a hold of more than $1, even at gas stations. I also do not get charged a fee for using my card. I actually earn rewards for using it.
Quoting chichiwvu:Be careful using your debit card as credit. The holds are usually 2-3 days, sometimes longer. If you use your debit card as credit at a gas station it might hold $50, even if you only purchased $25. Debit will come out same day. Also check your bank fees. When I first had my debit card we got charged a quarter for each use for either debit or credit (I forget now, it was ages ago). if you get a fee for using one or the other, try to go to the other one. It's coming back in style for banks to charge for using debit cards, so please pay attention to your bank's policies! Also, thieves will probably have an even EASIER time using a debit card as credit. Half the time the cashier doesn't even look at the card, and I can put a line on those signature things and it goes through.
The biggest problem for debit cards to me, is that it's "invisible money". Yes, it's linked to your account, so "yes" you can't use it if the money isn't there. HOWEVER. if you only knew the number of times I've had to deal with overdrafts fees on 3 or 4 small debit purchases(like less than $10) because a check clears the same day you'd realize how quickly they can become a problem (even if the OD fee is smaller, 4 small purchases can cost you over $100 in fees). I suggest using cash for small purchases (like getting a soda or fast food or something), even if you can't give up your debit card for gas and groceries - just give yourself a set amount each week/month. I know things are changing, but banks are still putting through largest purchases first. If you don't have a good handle of your budget, debit cards can still dig you a deep hole very quickly! I'd not cut it up, but the less it gets used the better.
Quoting specialwingz:You'd be surprised by the number of places across the U.S. that are refusing to take cash anymore. That number grows on a daily basis. It's supposedly to cut down the crime rates in the robbery department. So, don't go cutting up those debit cards.
I remember when debit cards first came out. I was bound and determined I was not converting to it. LOL. Now, it's all I use. It's the same as cash. If the money isn't in your account, the purchase won't go through. It is safer to use your debit card than to carry around cash. No matter how good the area you believe you are visiting/living.
My DD had her purse stolen. We learned a very interesting tidbit from the bank that they don't tell you if you don't know to ask. When, using your debit card, when it asks you if you are using it as a "debit" or a "credit"...always choose "credit". This does NOT mean you are using a credit card. It still reads your debit card as the debit card it is. But, it forces you to sign for the purchase instead of using your PIN #, which is now in danger of being "skimmed" in numerous ways. By, treating the purchase as a credit (but it's still a debit, I can't stress this enough) and signing for the purchase, this protects you through your bank. Purchases that are processed in this way are covered by the FDIC insurance your bank carries whereas "debit" processed purchases are not. In the event that your card gets stolen or you are a victim of identity theft, the purchases that are processed as "credits" are protected and you are NOT responsible for them. There is an actual signature that can prove or disprove who used the card. A debit card transaction simply relies on whether or not the establishment had cameras and caught the person who used your car. Then, and only then, is a purchase on a stolen card covered.
I hope that made sense. I'm still working on my 1st cup of coffee. LOL. Let me know if you have any questions. We went throught the wringer with DD's stolen purse situation. But, we learned A LOT! =)
ok, THAT's why a lot of people get into trouble with debit cards as credit. If you have $25 in your account, get $20 of gas and it holds $1, then you go and spend $5.67, it'll go through but you just spent $25.67, putting your account in overdraft. Even if you have overdraft protection, you still have a fee. Protection just means they'll let it go through instead of you getting charged by both parties you just get charged by one (or if it links to a savings account the money is withdrawn). Yours probably doesn't overdraft because you keep track of your money :), but the majority of people don't! I'm also very impressed you earn rewards using your bank card, you must have a very good bank! I was just saying that I'd been reading about banks starting to charge for using debit cards, my comments were more about people and debit cards in general, not your specific situation. I've seen many people get into trouble using debit cards. People like to use them, (they are very convienent, why not!) but I'm just saying if someone isn't good at watching their money it can end in disaster.
Quoting specialwingz:Well, mine won't overdraft. And, I've never had a hold of more than $1 on a purchase. I've heard others mention this. But, I've used my debit card with credit processing for over 10 years and in many states. Still never a hold of more than $1, even at gas stations. I also do not get charged a fee for using my card. I actually earn rewards for using it.
Who is more Frugal?
- jessicaaris
on May. 25, 2012 at 9:21 AM