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According to a recentChimesurvey, almost 1 in 5 Americans use cash for purchasing gifts.
Buying holiday gifts the old-fashioned way has some perks but some real disadvantages, too.
Heres what you should keep in mind when deciding between using cash orcard when holiday shopping this year.
Advantages of Using Cash for Holiday Shopping
Using cash for holiday spending offers several advantages.
As we know, credit card balances accrue interest, whereas cash does not, she continued.
Handling cash can also make you more aware of your spending by making purchases feel more tangible.
Opting for cash over credit can also help you stick to a budget.
They also dont earn rewards, such aspoints or cashback, on their purchases.
Cash isnt a viable option for online shopping, which can be limiting during the holiday season.
Additionally, carrying large amounts of cash can pose security concerns.
If credit cards tend to lead to overspending, cash might be the preferable option, she said.
However, this isnt the case for everyone.
The Chime survey found that 29% of people feel like spending cash doesnt count as spending money.
Consider your personal financial situation and shopping plans when choosing thebest payment option.
Those who can pay off credit balances promptly may benefit from card rewards, Dorsainvil said.
Evaluate your shopping plans, as online shopping may necessitate card use.
Its also wise to reviewcredit card terms, understanding interest rates and rewards to make an informed decision.
You might also take a hybrid approach.
The key is to choose a method that helps maintain financial health while enjoying the holiday season.
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