The cash versus card debate has been taken to a new level since the major banks began issuing convenient debit card options for all transaction accounts.
When things like phone, online and overseas payment options became standard debit card features, a lot of people speculated on the relevance of cash.
But even though debit cards offer a range of convenient features, security and payment options, one thing few people consider is how cash and cards affect our bank balance.
With this in mind, here we look at the savings potential for both debit cards and cash to see what option may lead you to overspend.
Debit Card Spending
Debit cards make it easier to pay for things whether you are in a store, on the phone or online, with the added bonus of an easy way to track purchases.
Thanks to internet banking, account statements are easily accessible and not only list the balance, but also when and where transactions have occurred.
These features make it easier to keep track of spending and see potential areas where you could save money.
But because debit cards are so easy to use, many people run the risk of spending more than they actually realise, and there are sometimes even card fees for frequent use.
Add to that the fact that many merchants have surcharges for card payments and it is clear that this convenient payment option can be a double-edged sword.
Cash could actually save us money just by being in a more tangible form, according to some of the research conducted over the past few years.
In fact, a joint study between Carnegie Mellon, MIT and Stanford in 2007 actually showed that people were more aware of how much they were spending when they used cash instead of cards, to the point of reluctance to spend more than necessary with cash.
If you are a spontaneous shopping, switching from card to cash could be the simplest way to start saving more.
Plus cash means you can set and stick to a budget just by keeping track of how much is in your wallet.
Debit cards may be one of the most convenient ways to pay for things, but it is good to be aware of how your payment choice can affect your balance.
Trying out other ways to spend, and looking at the pros and cons of each, will help you find a system that helps you get the most bang for your buck in any situation.