I’ve been a proud member of the cashless society ever since I begged my mom to let me have my first debit card at age 13. I remember how I reassured her that it was only with the intention of using ATMs and I would refrain from using it directly at stores. I’m sure that resolve lasted all of 5 minutes. I used a debit card exclusively throughout my high school years and through part of my first year in university. Along the way I encountered several “insufficient funds” scenarios, because I found it difficult to keep track of my spending with my debit card since I would have to go to the bank to update my book or check online. It was a hassle and eventually I decided to do away with my debit card and return to cold hard cash.
Then in my third year of university, I applied for my first credit card. I figured that with a new apartment it may come in handy to have. (Also, all my friends were doing it. I succumbed to peer pressure!) I had no idea. The great thing about a credit card is that I could buy things (some necessities, some not) before student loan money was deposited into my account. This was extremely important because one cannot wait 6-8 weeks to eat. I found myself scrambling for rent money and generally I would need to borrow the money from my Visa, have the rent taken from my account, and then once I got paid I would pay off my credit card. This cycle continued for some time, but I always managed to pay it off. I began to use my Visa much in the way that I was using a debit card. Despite the bonus of not having to pay a fee per transaction and earning (mostly useless) reward points, it became clear that neither the Visa nor the debit card are great ways to budget.
Now, because of the Big Move and not because of financial troubles (although I must say that the Visa hasn’t helped me build up any great savings) I need to quit using my Visa. This saddens me a little bit because 1) handing over a Visa is sooo much easier and saves time rather than having to count out bills and change and 2) I just got a new Starbucks Duetto Visa and not only does it look pretty awesome it earns me money towards coffee. So I have once again left the cashless society. Do I think it will help me budget better? Sure. That doesn’t mean I’m overjoyed over having to carry money around again. (Before you attempt to mug me, trust me – it’s not worth $10.) I still have both a Visa and a debit card, but those are going to reserved for emergency use only. And unfortunately, needing a new outfit *right now* doesn’t count.