Those on a budget may use more cash
Consumers looking to save money have long been advised to pay with cash. Because more people have looked to budget as the economy has remained shaky, that advice makes it necessary for businesses to have the most efficient currency counting machine. With many people still out of work, underemployed or trying to pay off debt, they may be hoping to stretch their household budgets as far as possible and choose to use cash for the majority of their purchases in order to spend less.
More people paying with cash and spending less
According to the National Foundation for Credit Counseling, people who pay with cash typically spend 20 percent less than those who use credit or debit cards. Consumers who use cash see the physical currency in their hands, which may spur their motivation to spend less than people who make all of their purchases with plastic and may not consider how expensive their purchases are. Consumers conducting a transaction with a card may also spend more because they have a high credit limit. Those who pay with cash are limited to spending only as much cash as they have in their wallets, and if they can't make it to an ATM or have a set amount of bills to spend for the week, they may ration purchases more carefully.
Other people may be drawn to the idea of using cash to enhance their budgets because they won't need to pay later or be responsible for accumulating interest. Making a purchase with cash upfront is a way for customers to avoid late payment fees, limit racking up interest that can hinder their savings progress and steer clear of having to send a payment later when they may not have the money. Still, more may choose cash because their financial position has been hurt due to the economy and they're unable to qualify for a new credit card.
Businesses prepare for budgeting shoppers
With the economic recovery still uncertain and plenty of people still out of work, many consumers may attempt to enhance their household budgets by choosing cash rather than credit. Small companies need to consider this trend when determining how to best manage their cash-handling practices. Without access to a cash counter, a business could find itself ill-prepared to deal with the large number of budget-conscious customers. As a result, its employees may be forced to spend more time than necessary each night manually counting cash drawers and less time with those consumers looking for assistance.
April 24, 2013