Spending with Cash, Debit or Credit

Cash, debit or credit… what’s your payment preference?

Most of us put very little thought to how we pay for everyday purchases.  In fact, I would go so far as to suggest that our method of payment is so automatic, that we don’t even stop to consider why use cash, debit or credit or the implications of each one.

I was recently at the grocery store with a friend who paid for her groceries with her debit card.
Knowing that she was someone who is responsible with her money and would not overspend on her credit card, I asked her why she used debit as her form of payment rather than credit. Without a moment’s hesitation she said, “because that is what I always use.”

We then had a hypothetical conversation about all the vacations she could have taken if she had purchased all her groceries over the years on credit card, all the while accumulating points.  It was an AHA moment for her! I believe she’ll be pulling out her credit card next time she’s grocery shopping.

I believe that money is life’s greatest enabler, and should be treated and tracked with care. Regardless of which form of payment you use, you should be tracking your spending and understanding where your money is going.

If you struggle with budgeting or managing a spending plan, as I like to call it, then you’ll want to avoid or limit your credit cards use. Spending funds you don’t have on shopping and other experiences can cost you far more than you could ever expect.

That being said, credit cards have all kinds of amazing benefits if AND ONLY IF, you use them properly. By properly, I mean only charge on them what you can afford to pay off at the end of the month. Take advantage of the points, rewards, insurances and access that credit cards can provide.

Posted on April 6, 2016