How do you pay for stuff? I personally use a credit card for everything, except for my $100 personal spending cash I take out each month. I like to get the points to use toward free airline tickets later, and I am lucky enough to be in a boat where I can pay it off each month.
With the memory of the economic bubble still very fresh, though, I wondered if people have changed the way the pay? According to an NPR article I found, the younger generation {i.e. college students} prefer cash or debit to pay. Each camp {debit vs. cash} says it’s a way to hold themselves accountable for their actual money. The article also suggested that their parents talking about their own debt and overspending has led them to be more conscientious about their purchases, all in an effort to avoid making the same mistakes. {Wahoo! Finally something positive about the trends of the next generation. It seems like all the media reports is the obesity epidemic, the over-use of technological gadgets, etc.–it’s kind of nice to hear them report about the upsides to the next generation.}
Now you can even download apps that basically streamline all of your financial resources into one easy place. That way, all you really have to carry around is your phone and your i.d. If your phone gets stolen, you shut that puppy down remotely and have one website you can go and manage your crisis immediately.
I think it’s pretty obvious that I am in a life simplification mode, and I personally would LOVE to use just one card for EVERY purchase I made. Unfortunately, lots of places don’t allow credit cards for monthly bills {mortgage, water, etc.}, so if I want to pay online, I have to use the bill pay function linked to my checking account.
So, what do you prefer: cash, credit, or debit? Why?
~Mavis
Lauren says
I’m in my early 30s and my husband and I use debit or cash. It was just too easy for us to overspend with our credit card.
Linda says
i use my credit card for EVERYTHING I can because I want the points to travel! I pay it off every month without fail. I would be curious to know which points card you prefer, Mavis! I just got the British Airways Visa because it offered 40,000 bonus points and no card fee for the first year. Also Avios can be used to book tickets on most airlines.
Mavis Butterfield says
We have 2. Alaska Airlines Visa and the SPG American Express.
Alaska Airlines – Free ticket {basically} with new sign up. $99 companion fair each year, 3 points per $1 spent on Alaska Airlines Tickets {which we fly a lot}.
SPG – 20 SPG points = 25,000 Alaska Airlines points so I transfer them {and get free airline tickets} several times a year.
Catherine Foster says
Mavis,
You might want to add that Alaska Airlines cc has an annual fee of, I think, $75. (:
susie says
Even though I listen to dave ramsey we still use a credit card and pay it off every month!
Linda says
We use our Amazon credit card for everything. We buy a large majority of our stuff from Amazon so we wind up getting a lot of our normal things (paper towels, tp) for free.
Emily says
When I was 22 years old I filed for bankruptcy with $12,000 in credit card debt. I am now 28 years old and consider that a hard lesson learned! I pay for almost everything with my credit card (cash rewards!) and pay it off every 2 weeks when I get paid no matter what. Since I have been doing this I have used my credit card for about $30,000 in purchases and not paid a penny of interest. Since I keep a running total in the notes on my cell phone every time I charge something, I use cash to pay for smaller purchases such as a coffee or a snack. That makes it easier to keep track of. The running total keeps me accountable for my debt and I never charge more on the card then what I have in my checking account which is what ensures I’ll be able to pay it off every 2 weeks. The high interest on my card is an incentive to keep it paid off. I use store credit cards for larger purchases with 0% interest offers and have never paid interest on those either.
Jenna Reeves says
I also charge everything to my credit card. I get paid once a month, so I just pay off my card when I get paid. I feel as though it’s a good way to track what I’m spending also. All of my monthly transactions are right there on my monthly statement for me to review. I tried the cash envelope system, but it did not work for me. If I have cash, I’m much more likely to spend it.
Michelle says
Been through credit card debt and back. If we don’t have the cash to pay for it, we don’t buy it PERIOD. Having to save for something really makes you question if it’s really a want or a need. Less really is more. 😉
Betty D says
Im only with a SS check each month so have to be careful how I spend, etc. Im also old fashion in a sense that I still do checks/cash/credit cards. I dont do debit. I do keep my cards paid off when they come due and like the pts/cash for doing so. Also keep a little cash on hand for those spur of the moment that pops up. My grand daughter started working while a senior in high school and was a cashier in a grocery store here and she was…the writing checks are for old people…grin..but it was a sure learning lesson for me yrs ago. I was also finding ways to stretch those dollars. We didnt have a lot growing up but it sure helped us to appreciate what we had even though at the time it didnt seems so. (like the time we had to carry water from a spring for all house hold use/moms washing…etc…and the next house we moved to had a Well…..oh, did we think we’d gone to Haven….grin)…sorry…folks ….memories …
Rebecca says
Hi Mavis,
I also use one credit card and pay for everything that I can with that card – – – and pay the balance in full each month. I have the Venture Capital One card and get 2 points for every $1. There is an annual fee of $59.
The monthly statement really helps me track expense categories. I break down the categories into food, gas, etc. and can then compare month to month to see where costs are increasing/decreasing or around the same.
Another nice feature of the Capital One card is that they do not charge a foreign transaction fee for purchases made while traveling out of the country.
ConnieP says
We had multiple credit cards (along with auto loans & insurance, a mortgage, etc) and played the “use this special offer to pay that one” game for YEARS. I can remember living in a state of constant panic and fear of not being able to pay for all the debt we had committed to. But, thank God that with time and life experience (both good and bad) comes wisdom and discipline. So, my husband and I made a conscious decision to “get our house in order” and to get out of debt. Today we use a debit card/cash for our purchases and we aim to be debt free by this time next year (if not sooner). A simple life = uncomplicated & happy … in my opinion 🙂
Pam says
I’m 55 years old. My home is paid for. Both of my vehicles are paid for. I have a monthly electric bill, internet service bill and television service bill (cable). I pay my car insurance bill once a year in full. I pay my homeowner’s insurance once a year in full. I wear what’s comfortable – whether it’s stylish/designer/whatever or not. I own 4 pairs of shoes (flip flops, muck boots, sneakers and a pair of black pumps somewhere in the back of my closet). I used to do the charge everything and pay it off at the end of the month. Until my husband got sick and was hospitalized…..and I couldn’t pay the bill that month……..and it added on to the next month……..you see the pattern here. I thought I had enough in savings to cover me for such a situation but I wasn’t anywhere close. So now, I buy what I can afford to pay for today and if I can’t afford to pay for it today…..I’ll get it later or not get it at all. It’s just what works best for us.
Carlie says
Cash(debit) or I just don’t get it. Credit cards were toooooo easy to use when I was younger and it was a tough lesson to learn. I should really learn to leave my debit card at home though as I am weak when it comes to great sales. hahaha
Denise says
I have two credit cards that I pay in full every month – Amazon and Fred Meyers. I make money off of them! My checking/saving accounts pay me also. I own my house so my extra money goes into my savings/retirement funds. I own both of my cars so only pay for upkeep and insurance. I am soooo lucky to be in this situation. Right now I am investing a whole bunch of money in my rental house, getting it ready to put on the market, so my funds may seem low at this moment but the returns will be coming soon. The rental house payments were always paid with extra against the principal so I will be getting that money back too. But also I don’t spend on stuff I don’t need. Mostly I buy second hand when possible, when I buy new I buy the best I can so hopefully it will last a long time. I grew up poor so I leaned how to live frugally and save money. I love the ebb and flow of money so I kind of enjoy paying bills. 🙂
Carla says
One credit card for everything. Paid off each month. Citi double card. You get money reward when you buy AND when you pay it off. So 2% total on EVERYTHING.
Karen says
Every monthly bill we have is on auto payment on our credit cards. I then have the credit cards paid automatically in full from our checking account. I pretty much only write checks for church and dog grooming and some other small bills if the person prefers a check to using a credit card. That way we never have to worry about being late. It helps that my husband never spends money without telling me so that we always know what the credit card amounts will be. Now that Costco will be changing to Visa I will have that and an Alaska Airlines Visa and a Chase Visa that until recently was a MasterCard.
Cheryl says
I use a debit card exclusively, but I use the credit function as opposed to debit. And I never ever have cash, it goes through my fingers like water, so I don’t even bother anymore. I have a MC with a $400 limit that used to get paid off each month and I have a Discover card that I cut into tiny pieces as it is maxed out. I had almost all my debt paid off in 2013 when Congress thought they should shut down the government. That was when I got the Discover card as I had this need for things like food, gas, etc. I pay almost all my bills online and I do not use any auto pay or third party bill bay sites and I am certainly not going to pay someone to process my payment. Because I do pay online, I have a spreadsheet I set up for bills, due dates, balances owed, etc. and every time there is a new bill, it gets added…like the parking ticket I just got. The system works out wonderfully, just wish Congress would free up a bit more money so I could buy more than groceries once in a while.
Shannon says
Not sure I’m following you……what does Congress have to do with your income?
Tamara says
Are you a government employee who was sent home? Please explain how the shut down cost you income.
Jen Y says
I prefer credit for the security & convenience, not to mention the cash back rewards. We used to do most shopping with cash but then a few years ago I had major surgery, then a few months later a serious back injury that had me in bed for months. So, life was hectic & it was just easier for my husband to shop with the cc. As I slowly recovered, I could barely make it through one stop – so no more going to the bank & shopping around, just surviving. so, I kept my receipts to make sure we stayed in budget.
After I healed enough to go back to my system, we realised I had shopped so long that I was pretty good at staying in budget without it. Freedom! 🙂 So, I shop with the cc & evaluate often.
On the next generation – my son is 22 & married. They use pretty much debit. They stick with their budget, have a huge savings, a good start on their 401k, a mortgage & one car payment with two other cars paid off (3 cars, long story) & pay for purchases in full, not on credit. I’m pretty impressed.