Accumulating Cash

[tvguy]

My husband grew up in a family with a deep distrust of banks, etc. No investments, minimal bank accounts, etc. It took me a long time to get him over that. He still keeps a little cash on hand and while I know where most of our money is and make sure it is invested properly and/or growing safely, I couldn't tell you exactly how much he might have stashed at any given time. I've kind of let it go.

It was a real eye opener to me how differently people see money even though I grew up in a pretty economically diverse family. I had also done some reading about poverty vs. growth mentality, etc. but it was still a real surprise when getting to know DH and his family.

As a kid in the early 1960s I remember a neighbor who had no bank accounts and literally put all their cash in the cookie jar. They had gone through bankruptcy. Apparently in those days, it was not a good idea to have a bank account after filing bankruptcy. Even though your debts had been dismissed, if I understand correctly, for seven years after bankruptcy, if a past creditor found out you had any money in the bank, they could seize it.

 

[barkley]

As a kid in the early 1960s I remember a neighbor who had no bank accounts and literally put all their cash in the cookie jar. They had gone through bankruptcy. Apparently in those days, it was not a good idea to have a bank account after filing bankruptcy. Even though your debts had been dismissed, if I understand correctly, for seven years after bankruptcy, if a past creditor found out you had any money in the bank, they could seize it.

i'll do you one better-neighbor when I was growing up would put all their cash into coffee cans (remember those ) and when they had 4 or so filled they would bury them in their backyard and cover the spot with a patio paver. years and years of doing this and they had an impressive patio (and when they passed their adult children spent a prolonged period of time digging up pavers, rolling coins and batching bills).

 

[MillauFr]

my father passed in 1981. he NEVER trusted 'banks' and would use savings and loans exclusivly. his basis for mistrust-he was a young adult when the stock market crashed in 1929 and saw the difference between what happened with the s&l's vs. the banks. it was ingrained in him that banks were cold hearted buisnesses while s&l's had some kind of community connection. he knew chapter and verse how banking regulations and safeguards had been instituted since then but he just could not shake what he had witnessed first hand.

Considering the interest rates banks charge on credit cards your father isn't that far off.

 

[ronandannette]

I'm a Senior Citizen on Social Security, I pay cash (or check) for the cash discount. Did a major home improvement project this year. All new siding, windows and exterior paint, $50,000 in total. Got a $1,500 discount for paying cash.
And in the past few days I caused a stir on a cruise forum over a cruise I am taking to Canada. I asked about tipping excursion guides in cash.,.....specifically having Canadian cash to do it. Several planned to use Zelle or Venmo but have just discovered they do not do business in Canada. They are scurrying to get cash for tips.

We don't have those apps because we have something better - e-transfer. All one has to do to pay a bill or send "cash" to someone is use your (any Canadian) bank's on-line system to automatically send it via e-mail. The person on the receiving end uses a similar function on their own bank's website to deposit it. Takes all of 10 seconds.

 

[Dan Murphy]

Cash to a very small business or individual for services rendered is often used to not report for tax purposes (could be worth up to msybe 25%'added value' to the payee. or sometimes for purchase of illegal or stolen property.

 

[barkley]

Considering the interest rates banks charge on credit cards your father isn't that far off.

the only credit cards I recall my parents having were for gasoline. dad's attitude was that idealy the only debt you carried was your mortgage-and he was AGHAST that anyone would pay just for the privledge of having a card. mom ended up getting a no fee amex card a decade or so after dad passed-we convinced her that it was a good idea if she was traveling to have one in case of an emergency (and she realized hotels and such actually wanted a card to hold your reservations and would'nt just trust you to pay at check-in ).

 

[tvguy]

We don't have those apps because we have something better - e-transfer. All one has to do to pay a bill or send "cash" to someone is use your (any Canadian) bank's on-line system to automatically send it via e-mail. The person on the receiving end uses a similar function on their own bank's website to deposit it. Takes all of 10 seconds.

How do you tip people like sky caps, and tour guides? With this app, that seems a little cumbersome to me. You need to enter an e-mail while this poor guy is trying to unload your luggage? Or do still tip in cash? Although, as I posted, I got some of the current Canadian currency to tip with. I felt it a bit disrespectful with the current environment to tip in U.S. dollars in Canada.

 

[tvguy]

the only credit cards I recall my parents having were for gasoline. dad's attitude was that idealy the only debt you carried was your mortgage-and he was AGHAST that anyone would pay just for the privledge of having a card. mom ended up getting a no fee amex card a decade or so after dad passed-we convinced her that it was a good idea if she was traveling to have one in case of an emergency (and she realized hotels and such actually wanted a card to hold your reservations and would'nt just trust you to pay at check-in ).

My parents had gas cards and the biggie "Bank Americard". I don't think they paid a fee to have them. But my parents, and my wife's father did not believe in mortgages. You bought what you could afford, and paid cash. Of course, my parents first home in 1950 only cost $2,500. But my dad was 40 and my mom 27, so they had been out in the working world a number of years so had time to save money. And my mom was a nurse, and after World War II, single nurses got free room and board as part of the job.
My father in law was career Air Force and housing was always included as part of his assignment. He retired at age 46 and had saved enough to pay $10,000 cash for his first house in 1973.

 

[MillauFr]

How do you tip people like sky caps, and tour guides? With this app, that seems a little cumbersome to me. You need to enter an e-mail while this poor guy is trying to unload your luggage? Or do still tip in cash? Although, as I posted, I got some of the current Canadian currency to tip with. I felt it a bit disrespectful with the current environment to tip in U.S. dollars in Canada.

Well now days if they don't have a cashless tip option they aren't getting anything from me. I don't use cash.

 

[tvguy]

Cash to a very small business or individual for services rendered is often used to not report for tax purposes (could be worth up to msybe 25%'added value' to the payee. or sometimes for purchase of illegal or stolen property.

Absolutely does happen. Same with barter or trade out. I had a friend who ran his own business and as it got to the end of the year he was watching the impact of every penny of income and expense. It was not uncommon for him to not bill for services until the next year if the income would push him into a higher tax bracket. Same with equipment purchases, if it had a bigger tax benefit this year, it got bought this year.

 

[barkley]

My parents had gas cards and the biggie "Bank Americard". I don't think they paid a fee to have them. But my parents, and my wife's father did not believe in mortgages. You bought what you could afford, and paid cash. Of course, my parents first home in 1950 only cost $2,500. But my dad was 40 and my mom 27, so they had been out in the working world a number of years so had time to save money. And my mom was a nurse, and after World War II, single nurses got free room and board as part of the job.
My father in law was career Air Force and housing was always included as part of his assignment. He retired at age 46 and had saved enough to pay $10,000 cash for his first house in 1973.

the house I grew up in my parents bought in the early 60's. I don't know what their financial situation was at the time (they had owned prior homes long before my birth) but whenever the subject of paying off the mortgage came up it was quickly set aside b/c they were locked in on a mortgage at around a 4% rate but their cd's were earning anywhere from 8-over 18%.

not surprised your parents had a bankamericard-being in the sacramento area they were likely one of the 60,000 california households the company that was headquartered in san francisco at the time sent out entirely unsolicited cards to in a mass mailing to introduce their new cards.

 

[AustinTink]

LOL I work in a bank - the first time for 20yrs, currently it’s been 14mths - cash is still king in our household.

We’ve always ensured that everyone in the family has at least $20 in cash on their body - our 18yo & 15yo sons both prefer cash, our 20yo daughter prefers a card. Even when we travel overseas we ALWAYS have a stash of cash alongside our cards. Went to Egypt in February and Hawaii in June - both times we carried approx $5k in USD. When my 18yo started travelling between Australia and the US over the last three years he was sent with a stash of USD each trip that was replenished on each home trip.

There are too many things that can affect card usage, cash will always have a place.

We were just in your neck of the woods. We had to exchange some USD to Australian dollars for a few of the vendors at the weekend markets around Sydney. Lucky for us we always travel with cash.

We’ve encountered that at marketplaces all over the world. Many of the vendors do not take cards.

We did the Glebe market, Paddy’s, Hay St. and Chinatown one day, and the small market in Manly the next. What a blast!

 

[PollyannaMom]

After our main bank closed our local branch, we opened a second account at a smaller bank we're more comfortable with. Personal banking is important to me, and I don't want to drive half an hour just to cash a check.

We do keep cash in the house, but not at the high levels talked about earlier in the thread. We always had a little bit on hand, but upped it some after a big storm led to several days of cash-only businesses here a few years back.

 

[_19disnA]

How much cash you keep around, when you pay by check and what sort of bank you use largely depends on where you live, personal preference and what you are buying. I have always paid the landscaper or home maintenance people with a check that also serves as my receipt. Avoids any issues in how the workers might hand off the cash to whomever actually makes the deposits at their company. I will probably always use cash for small purchases or when buying something at a fast food drive-thru, tipping a valet, etc. Clearly, the companies who make/sell cell phones try to make it sound like you are somehow old fashioned if your life doesn't revolve around their wonderful/amazing devices. We still call that an attempt at clever marketing...................LOL.

 

[georgina]

Most of our savings is in higher yield online accounts, but they are linked to a local brick and mortar bank. DH often needs $600 or so in new $20's for scuba trip tips, and I have to go into the bank to get bills that are in good shape with no ink markings, etc. Fortunately the tellers understand the issue and are happy to go through the bills with me.

We just got back from a trip to Africa (everyone in Zimbabwe took American dollars, we used credit cards in the other countries), but at our last hotel in Zambia I was talking with the front desk manager and she asked me if I would exchange some of my nice bills for some more used ones that the staff had been given for tips, because they could not use them in their condition. One of the 20's was from 1950!

 

[goofyernmost]

Every business I have dealt with that offers a cash discount, considers a check, cash for discount purposes.

I have noticed that in spite of a large number of brick and mortar banks in my area they can't even come-up with a roll of quarters much less thousands of dollars. The only thing that banks do now is use them to do financial planning or issue loans.

 

[RedAngie]

Nah, if it’s more than a few hundred dollars, I’m not buying anything from a stranger with cash. I keep that much around, but for a $6500 jet ski the seller has to take zelle/venmo or a certified check.

 

[tvguy]

I have noticed that in spite of a large number of brick and mortar banks in my area they can't even come-up with a roll of quarters much less thousands of dollars. The only thing that banks do now is use them to do financial planning or issue loans.

Like I said, for purposes of a cash discount, every business but one that I have dealt with considered a check to be cash. And that was only $1,000 cash for the driveway. I don't go to the bank much any more, but a lot of small business owners are in there depositing or withdrawing cash and coins so at least here, I would expect them to have plenty of cash on hand.

 

[tvguy]

the house I grew up in my parents bought in the early 60's. I don't know what their financial situation was at the time (they had owned prior homes long before my birth) but whenever the subject of paying off the mortgage came up it was quickly set aside b/c they were locked in on a mortgage at around a 4% rate but their cd's were earning anywhere from 8-over 18%.

not surprised your parents had a bankamericard-being in the sacramento area they were likely one of the 60,000 california households the company that was headquartered in san francisco at the time sent out entirely unsolicited cards to in a mass mailing to introduce their new cards.

Well, my dad try to get a VA Home Loan on the house they purchased in 1960 but was declined. VA didn't think he could afford the payments on a house that cost $29,500! My parents had sold their previous home, on 5 acres that developed the back 3 acres into a subdivision for $50,000. He had apparently hoped to invest the money and not put it into the new house. This forced him to pay cash for that house. I found a stack of angry correspondence between my dad the the VA over that when my mom passed 12 years ago.

 

[Dan Murphy]

Absolutely does happen. Same with barter or trade out. I had a friend who ran his own business and as it got to the end of the year he was watching the impact of every penny of income and expense. It was not uncommon for him to not bill for services until the next year if the income would push him into a higher tax bracket. Same with equipment purchases, if it had a bigger tax benefit this year, it got bought this year.

I was referring more to not reporting cash transactions and not paying any taxes on those transactions at all, rather than managing timing and the timing of what year to honestly pay the appropriate taxes due.