In light of the previous post on when to use cash or credit for gas, there are not too many times I use cash to pay for anything anymore. The only times that I do use in cash:
- Mom and Pop stores
- Hair cutter – I would love to pay by credit since I go so frequently
- Lunch places
- Tipping the wait staff
- Small denomination gifts
The hair cutter that I go to, unfortunately, is a cash only business. There are several places for lunch that I frequent, but I don’t use my card because it’s $6 and under. I typically shy away from doing that at mom and pop stores. However, if it was at Starbucks, Panera, Pret a Manger, etc, I’d be glad to use credit.
I learned this from a good friend, when paying at a restaurant with credit, leave the tip in cash. The tip can become taxable income to the wait staff, so if they wish to under report I’ll let them decide and leave it in cash for them. However, if the tip is fairly large, I would put it on the card.
Besides, it’s great to fold money into interesting objects. Great conversation starter among friends, family, and folks in the hospitality business.
I don’t use cash often, but I still carry it. Cash is king after all.
