Cash is back in fashion

by Money Doctor Wednesday 23 April, 2008

Cash has been around for quite some time... since about 1200 BC in fact.

It first went virtual way back in 1871 when Western Union succeeded the company introduced its money transfer service, based on its extensive telegraph network.

Suddenly money could be sent down the telegraph wires rather than by Pony Express (which was way cooler mainly because it involved delivering mail and money by racing across the whole of the USA on horseback).

Since then, it has been much then it has been downhill all the way for cash, as growing numbers of us have opted for credit cards, debit cards or credit transfers.

Did you know that over 95% of our money is now held in digital form by banks, building societies and City institutions?

In fact things have become so automated that some analysts have predicted that cash itself may soon be a thing of the past (like England winning at football ...)

In Japan cash is very close to being a thing of the past for more and more people who choose to make nearly all of their purchases directly from their mobile phones. There are also many parts of Africa where money transfers by mobile phone are becoming widely popular.

If you are fan of cash, then panic not as history won't be dictated to!

That is because a recent survey of over 17,000 shoppers by the British Retail Consortium has found that cash was used for 60% of transactions last year, compared with 54% in 2006. They may be largely small-ticket items, but there is no mistaking the growing trend.

The BRC puts it down to the effects of the credit squeeze making people increasingly reluctant to "spend money they haven't actually got in their hands" (something we here at The Money Hospital have been recommending for a while)

But paying by cash is also a good policy for you if you are worried about identity theft or what happens when you hand your credit card details to an unknown person online or to the waiter in a restaurant.

Whatever the reason for its revival, it is always good to welcome a comeback kid!

We bet you a tenner that cash is here to stay!

Categories for this post: Banking

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Comments

Stephen Crawley says:

Saturday 26 April, 2008 / 08:04

Debit cards are the same as cash and are as effective as having the cash in your hand.

Whilst cash purchases may have gone up, the advent of internet shopping has decreased physical visits to shops.

To only spend what one has is good and sensible advice, especially during the 'crunch'.

Printed money I hope will soon disappear, it would slow street crime and lets be honest, cash is dirty in all the wrong ways, money can be dirty in all the right ways!!!

Les Horne says:

Monday 28 April, 2008 / 10:04

I Agree with the use of cash, A debit card is fine but recently I went into a store to buy a few items , and when I atempted to pay with my DEBIT card I was advised that there was a 30p charge for using it....!!!!

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