During the financial crisis, many families feared a complete collapse of the banking system that would make it impossible for them to access their savings. The shaky recovery hasn't done much to restore consumer confidence. As a result, more people are keeping large amounts of cash on hand, rather than solely in a bank account. While much of this money is for emergencies, many individuals also use it for regular purchases, making it important for businesses to have an updated cash counting machine to handle these transactions.
More people saving at home
Rather than only keeping their savings in an account, more people are hiding their money at home in case of unexpected events. Part of this trend can be seen in the vast amount of currency in circulation - the Federal Reserve reported that as of July 3, this number was at an all-time high of $1.2 trillion.
The enormous amount of currency in circulation can be attributed to a variety of factors. The number of workers accepting under-the-table payments rather than traditional paychecks could play a role, especially if these employees choose not to keep a bank account and deal only with cash. However, a great deal of it is also due to the number of individuals nervous about keeping all of their eggs in one basket and risking financial ruin if an economic collapse should occur. The vast number of Americans storing their savings at home also contributes to the enormous amount of currency in circulation.
The Federal Reserve Bank of San Francisco 2012 Annual Report revealed that since the recession took hold in December 2007, the number of cash held by Americans has continued to rise. While there is always the chance money kept at home will be lost or stolen, many view these potential dangers as having lower risk than saving money with a struggling financial institution.
Some people hoard their cash the old-fashioned way - storing it under the mattress, in the freezer or in a drawer. However, there are now more sophisticated ways for savers to securely stash any money they want to keep at home. Safes that fit under the bed, rooms that are converted into vaults and lock boxes that are built into usable furniture pieces are becoming more common as more people seek to keep some cash on hand.
Even though this cash is meant to be saved, many individuals may need it for emergencies or if they've reached the limit on their credit cards. As such, business owners need to be prepared by having a cash counter that is capable of handling more paper currency transactions and will streamline backroom processes.
July 11, 2013