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Pandemic has dethroned cash as the monarch of personal finance

Your parents say it, the experts say it, people who are wealthy say it – if you’re buying something, pay with cash, not credit. And even debit cards can come with hidden fees, they say.

But this crazy pandemic situation has us all tap, tap, tapping away for groceries, for gas, for a box of beer, and any of the other services we can actually spend money on. Could this represent a sea change for the use of cash, or is it just a blip? Save with SPP had a look around the Interweb for a little fact-finding.

Proponents of cash include Gail Vaz Oxlade, author and TV presenter who has long advocated for using cash for expenses, rather than adding to your debt.

“I’m a huge fan of hers and have read every book and watched every episode of Til Debt Do Us Part, Money Moron and Princess… the premise of the system is to use cash only (no plastic), storing it in envelopes or jars, sticking to a budget, tracking your spending, and once the money is gone, there’s no more until next month’s budget,” reports The Classy Simple Life blog.

It’s true – we have read her books and if you follow her advice your debts will decrease.

Other cash advocates include billionaire Mark Cuban. He tells CNBC that while only 14 per cent of Americans use cash for purchases (pre-pandemic), he sees cash as his number one negotiation tool. “If you want to take a yoga class, and they say it costs $30, say `I’ve only got $20,’” he says in a recent Vanity Fair article. More than likely, he notes, they’ll take the cash.

Cash is great because it is (usually) accepted everywhere, there’s no fees or interest associated with using it, and it has a pre-set spending limit – when your wallet is empty, you stop spending. But these days, cash is no longer sitting on the throne of personal finance.

Globe and Mail columnist Rob Carrick notes that more than six weeks into the pandemic he still had the same $50 in his wallet that he had when it started.

“Paying with cash is seen as presenting a risk of transmitting the virus from one person to another – that’s why some retailers that remain open prefer not to accept it. Note: The World Health Organization says there’s no evidence that cash transmits the virus,” he writes. In fact, he adds, the Bank of Canada recently asked retailers to continue to accept cash during the crisis.

A CBC News report suggests that our plastic money may indeed present a risk, and that the COVID-19 virus may survive for hours or days on money. The piece suggests it is a “kindness” to retailers to pay with credit or debit, rather than cash.

“Public officials and health experts have said that the risk of transferring the virus person-to-person through the use of banknotes is small,” reports Fox News. “But that has not stopped businesses from refusing to accept currency and some countries from urging their citizens to stop using banknotes altogether,” the broadcaster adds. The article goes on to point out that many businesses are doing “contactless” transactions, where payment occurs over the phone or Internet and there is not even a need to tap.

Putting it all together, we’re living in very unusual times, and this odd new reality may be with us for a while. If you are still using cash, it might be wise to wear gloves when you are paying and getting change. Even if you aren’t a fan of using tap or paying online, perhaps now is a time to get your grandchildren to show you how to do it. The important thing is for all of us to stay safe – cash may be dethroned for the short term, but things will eventually return to normal, and it will be “bad” to overuse credit cards again.

And if that cash has been piling up during a period of time when there’s precious little to spend it on, don’t neglect your retirement savings plan. The Saskatchewan Pension Plan offers a very safe haven for any unneeded dollars. Any amounts you can contribute today will grow into a future retirement income, so consider adding to your savings today.

Written by Martin Biefer
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock. He and his wife live with their Shelties, Duncan and Phoebe, and cat, Toobins. You can follow him on Twitter – his handle is @AveryKerr22

Should we really kick back and put our feet up in retirement?

No matter what we do in our work lives, it’s an intense drag on our downtime. You get up, you get dressed, you’re out the door for your drive, bus, train or bike commute to the office, there’s lots to do, there are meetings, you’re pounding coffee all day. At the end of the day the couch looks irresistible.

So is retirement really the time of life when we put our feet up and measure out time with coffee spoons?

No, says the Home Care Assistance blog. “The dangers of a sedentary lifestyle are even more significant for seniors because they are already at risk for developing serious health conditions,” the blog warns. Physical activity gets “the blood pumping through the body,” the blog notes, but inactivity leads to slower circulation, “which can have a devastating impact on the heart.”

If you are developing arthritis, the worst thing to do is to take it easy, the blog reports. “Seniors with arthritis must keep their bodies moving to prevent joints and ligaments from becoming too tight,” the blog advises.

Physical activity helps prevent other conditions, such as memory lapses, depression, and the likelihood of falls, the blog reports. It all adds up to a shortened lifespan, the blog concludes.

The Dr. Axe blog expands on some of these points. Being sedentary is a huge problem in the U.S., the blog notes. “It’s startling to discover that Americans spend 93 per cent of our lifetimes indoors — and 70 per cent of each day sitting,” the blog reveals.

As a species, humans are supposed to spend each day moving around – our ancestors had to rustle up food, seek shelter, and find warmth, the blog explains.

“How does not moving regularly take a toll on our health? The World Health Organization estimates that a lack of physical activity is associated with 3.2 million deaths a year,” the blog notes. The blog lists diabetes, heart disease, poor circulation, “fuzzy thinking,” and even loss of muscle mass and bone strength as by-products of a sedentary lifestyle.

So what do we do to combat these risks?

The Wisdom Times blog sets out some ideas to help you avoid the negative effects of couch occupancy.

“Walk every day, have a sport, and go to the gym,” the blog suggests. Take the stairs instead of the elevator, the blog notes, and consider parking in a “faraway spot” if you’re driving places.

“If you are one of the blessed lot to have your office within 4-5 kms from home, you could consider cycling to work. You will also contribute to the social conscience by saving on the pollution,” the blog recommends. Other easy ways to combat the sedentary lifestyle including playing with kids and grandkids, dancing, and in the kitchen, avoiding the use of powered appliances, and instead “get your pounding stone or your grinding stone out.”

Let’s face it – if we’ve gone to all the trouble to squirrel away savings for retirement, why not go to a little more trouble, through being active, to make it a long retirement?

If you have taken a sedentary approach to getting out there and saving for retirement, a helpful tool is at hand. The Saskatchewan Pension Plan offers you an end-to-end approach to turning your savings into retirement income. Take action, and check them out today!

Written by Martin Biefer
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock. He and his wife live with their Shelties, Duncan and Phoebe, and cat, Toobins. You can follow him on Twitter – his handle is @AveryKerr22