Cash doesn’t hold the importance it once did. Today, most things can be paid for with plastic or by a money app like Venmo.
However, most people haven’t gone completely cashless. Specifically, the average American keeps $67 in cash on hand, according to a Federal Reserve survey.
If you’re conflicted on this, you’re not alone. GOBankingRates spoke with two financial advisors to find out if they think you should carry cash and if so, how much.
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How Much Cash Should You Carry?
Habitually carrying at least some cash makes sense, said James Mayo, certified financial analyst (CFA) and principal at IronFjord Wealth Management. As for exactly how much, he said there isn’t a magic number.
“Personally, I probably carry about $40 to $60 in cash at any given time,” he said. “I’m not paranoid, but I like being prepared — especially if I’m traveling or somewhere rural.”
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Despite that, he said the cash can sit in his wallet for months without being touched, as he typically pays by card.
Sharing a similar mindset, Kyle DePaolo, co-founder and principal at DePaolo & May Strategic Wealth also carries cash in his wallet. Not too far off from Mayo, he suggested keeping $50 to $100 in cash on hand at all times.
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Cards Aren’t Accepted Everywhere
Plastic can’t be used to pay for everything, which is one reason DePaolo keeps cash in his wallet.
“Sometimes, a granola bar at 3 p.m. is the financial crisis,” he said. “Cash comes in clutch when machines, valet stands or that one stubborn taco truck won’t take Apple Pay.”
He said paper currency can also be essential in certain areas. “If you find yourself in a cash-only cabin town that thinks Venmo is a skincare brand,” he added.
Pay During Outages
Credit cards and apps are convenient payment methods, but they rely on the technology powering them to function properly.
“Even in 2025, Wi-Fi can vanish faster than a toddler with your car keys,” DePaolo said. “A little physical currency can be your backup plan when tech goes dark.”
Easy Tipping
Some service providers accept tips electronically, others do not.
“You can’t Venmo the coat check or toss a Zelle at the band at your cousin’s wedding,” DePaolo said. “Carrying a few bills can make you that person who always tips generously and smoothly.”
Old-Fashioned Budgeting
Some people spend less when paying with cash, DePaolo said. Since you can’t buy anything with an empty wallet, this can be an effective budgeting strategy for many.
Acts of Kindness
Sometimes you might stumble upon an opportunity to give back, but random acts of – financial – kindness often can’t be paid electronically.
“Let’s be honest – pulling out a crisp $20 to buy lemonade from a kid-run stand makes you feel like a community hero,” DePaolo said. “And if that’s not ROI, I don’t know what is.”
Teachable Moments
For parents, paying with cash is an opportunity to show your kids how physical money works, Mayo said. This can lead to conversations about the value of a dollar and the importance of budgeting.
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Lack of Security
“If you lose your wallet, cash is gone forever,” Mayo said.
Conversely, cards can be turned off and replaced, which is also helpful for fraud protection, he said.
No Digital Records
Apps and credit cards digitally track your spending, Mayo said. This can serve as helpful budgeting tool.
Miss Out on Rewards
“I like to swipe as I earn rewards for purchases,” Mayo said.
A responsible spender, he said he pays his cards off each month to avoid interest and fees.
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This article originally appeared on GOBankingRates.com: Average Americans Keep $67 Cash on Hand — Do Experts Advise More or Less?
