I read an interesting article today from mint.com. The author share statistics on how we as Americans have steadily moved from cash to using more plastic (credit and debt cards) for our payments. Very interesting reading. You can read it yourself. I have placed the link at the end of this post.
Besides the plastic other payment options are being used more with credit and debit cards including EBT’s (Electronic Benefit Transfers – electronic bill pay) and ACH’s (Automated Clearing House – what they do when they hand your paper check back to you at Walmart). The point is with all these options the writer suggests that cash is going away.
The United Kingdom is cited as a group of countries that have experienced similar changes. However, the most eye-opening country was Japan. They are discussing, according to the article, abandoning cash all together. Interesting. A global currency? Have I not read that framework in the Bible years ago?
There are so many angles one could pursue from this article, but for me I am concerned about how people will continue to spend more than they make if cash is gone. I mean really, I learned this years ago and my most successful clients know it has positioned them to progress to the point they are at – cash is magic! Cash keeps us on track when we let it. Have you ever tried it to see if it works?
Of all the statistics shown in the article, I am interested in saying how consumer debt levels relate to the increase in the use of plastic.
What will we do if cash goes away?
Here is the article. Click here.
