Cash vs. Credit Card

Do you prefer to use cash or a credit card?  Is one easier to use than the other?  If you won $500 cash, would you save it or would you immediately spend it?

Sometimes, people prefer to use cash, and other times a credit card is easier, probably for bigger purchases.  However, there are some pros and cons of using cash instead of credit or debit cards.


  • With cash, there is a limit to how much you can buy, whereas a credit or debit card you can spend a lot more.
  • Cash can get bulky in your wallet and loose change can be annoying.
  • If you don’t have self-control, you can spend all of your cash very quickly.



  • You probably won’t spend as much as you would with a credit card, so using cash limits over-spending.
  • Cash is really convenient to use.  We all love those “Girl Scouts cookies” in front of stores, and cash is the easiest and quickest way to pay.
  • There’s no interest associated with a purchase.  When you put something on a credit card and don’t make a minimum monthly payment, you’ll pay interest.  But if you use cash, you pay for the entire product right there and then, so you don’t have to worry about paying it off!
  • Cash can be used as a bargaining chip sometimes to get a better deal.  At some places, if you can pay with cash instead of a credit card, you might be able to get a discount.
  • The feeling of having cash is a powerful feeling.  Yes, you have money on your debit card or can put a purchase on your credit card.  But having cash to spend on anything you want and not have to worry about paying it off is a much better feeling!

So, using cash might be better or easier than a credit card sometimes. And if you win $500 cash, you can see for yourself which is better!