Despite the US government not wanting to declare a recession, the numbers don’t lie. Consumers are feeling the effects of our post-COVID economy. Triggered by the highest inflation rates in 40 years (an 8.5% increase since 1981), rising fuel, food and higher housing costs, not to mention supply chain shortages, are affecting us all. And with tough times people are more aware than ever that they need to cut costs and save however they can.
But how do you save money when wages are not keeping up with inflation?
The answer may be as simple as using cash to stay within your budget. A recent hashtag (#cashstuffing), broke the internet on TikTok - with over 350 million views and counting challenging users to manage their spending by using cash.
While TikTok may be leading the way for younger generations with this old fashioned cost saving hack, more and more Americans are now considering cash budgeting to minimize their spending as much as possible.
Cash Bounces Back Post-COVID Fears
The recent US Federal Reserve’s Diary of Consumer Payment Choice reports that “a substantial larger portion of the population used cash to make everyday purchases and to hold as a store of value” between 2020 and 2021. In fact, for the first time since the Federal Reserve began their annual payment habits survey cash usage rose - up 20% over the last two years.
Why? Cash is considered a more accessible, cheaper and easier way to make payments, stay out of debt and save money.
Why Use Cash and ATMs Over Cards in Recession?
There are many reasons why people, especially low-income and middle-class consumers, turn to cash and ATMs to pull through times of economic distress. Some of these reasons include:
Cash Enables Healthier Budgeting – Using cash for budgeting as demonstrated by the recent TikTok challenge makes it easier for people to stick to their specific savings goals. Cash is also tangible, which helps to prevent overspending. This old-fashioned hack has been used for decades and the statistics back it up as referenced in the pre-pandemic numbers from 2010 published by the Journal of Consumer Research.
Using Cash Eliminates Unnecessary Fees and Debts – Americans have over $800-billion in debt and with the volatility of markets and increasing prices, using cash helps to prevent increasing debt. Additionally, according to creditcards.com, you’re likely to pay almost 17% more than the average cost by swiping a card compared to paying with cash.
Easier to Negotiate with Cash – Having a bit of cash gives you a bit of leverage. Most business won’t question pricing when you swipe plastic, but if something cost $15 and you have $12, you’re more likely to get that savings than the merchants saying no to a sell.
Give your Customers Easy Access to Cash with an ATM
With the increasing prices of goods and services, many consumers are looking for ways to cut costs in order to stay on budget. Cash is a great way to do that and installing an ATM in your business is a great way to give your customers easy access to it.
And as the numbers also show, having an ATM in your business enhances your chances - by 40% - of customers spending at least half of their cash withdrawal right there on your premises. It makes sense to give your customers the access they need. It’s a win-win for you and your customers struggling to make ends meet.
Discover how your business could qualify for a free, turn-key ATM. Contact Heath ATM today!
Give us a call at (800) 849-3029 or email us today!