Cash remains an important part of our financial transactions. Yet, we tend to forget how important it is to manage our cash.
According to the summary of the Diary of Consumer Payment Choice, a national study, cash still has a "dominant role" when it comes to small-value transactions. It also remains essential for lower-income consumers who may not have access to alternative payment options, and it is widely used for retail sector payments.
The study notes that cash "accounts for a relatively small share of total consumer transaction activity at 14%, while electronic methods make up 27% and checks 19%."
The findings, therefore suggest that while consumers may not use checks or electronic payments very often, they prefer those methods for high-value transactions, "the average value of a cash transaction is only $21, compared with $168 for checks and $44 for debit cards."