Two mums save £166 a week switching from contactless to cash as experts say using coins and pennies helps to budget
TWO mums saved £166 a week by ditching contactless payments after The Sun on Sunday asked them to go cash only.
As the contactless revolution grips Britain, an increasing number of households are switching back to notes and coins to help them budget.
Experts say the practice of handing over cash makes us more “mindful” about purchases and helps keep track of spending.
Library assistant Cassie Cooper saved £106 in a week by avoiding unnecessary spending after setting herself a strict £155.50 budget.
If she cut up her cards and continued, the mum of two would be more than £5,512 better off over the course of the year.
Cassie, 41, from Darlington, Co Durham, said: “It’s a really good trick to save money.
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“It made me budget as I only have a certain amount to spend, whereas when I’m using my card I tend to be quite free with my budget.”
In November the Post Office saw its highest number of customer cash withdrawals this year, totalling £878million — up seven per cent from the £821million withdrawn in October and five per cent higher than the £836million withdrawn in November last year.
In its annual report, banking trade association UK Finance said 6.4billion payments were made with cash in 2022 — up seven per cent on 2021, but still dwarfed by the 13.1billion contactless payments made with credit and debit cards.
When we asked Cassie to give up contactless she saved £15 on her weekly supermarket shop by swerving her usual sweet treat and a bottle of wine.
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She added: “I’ve avoided two-for- one deals in supermarkets and buying unnecessary things like chocolate when I’m driving home from work.
“I haven’t bought anything that I’ve seen online as I would have to use my card.
"Even if people set themselves a challenge of doing one week every month using just cash, they can see what they save throughout the year.”
Sales assistant Laura Myers saved £60 over a week by splitting £120 in cash into envelopes for buying essentials such as food and petrol.
The 44-year-old mum of two, from Chigwell, Essex, said: “I tap my card so much that I have become complacent with it. It’s almost like it’s not real money.
“I’ve definitely spent less over the week. Usually if I go to the shop to buy bread I come out with a few extra things I probably didn’t need.
“This week I only had £2.50 left so I only bought bread. Over a week I’d usually spend £80 on food and bits but I only spent £60.”
Laura saved money by avoiding unnecessary spending on little luxuries such as clothes and booze.
She added: “I’ve been far less tempted to spend on things I don’t need, but still had enough to buy my daughter some chocolate or a treat after school if I wanted to.
“I walk to work so I don’t spend much on petrol but I was able to just put £10 in the car when I needed it rather than filling up the whole tank, going overdrawn and then not being able to pay bills.
"When I went Christmas shopping I only spent the cash in my envelope, rather than overspending and worrying about the debt later. I definitely spent less overall and have noticed my bank account looks much healthier as we head towards the end of the month.
“It’s really nice not having to worry about payments bouncing. I’m definitely going to keep it up in the New Year and hopefully I’ll get my finances in good shape.”
Clinical psychologist Dr Marianne Trent told The Sun on Sunday: “When you pay with coins and notes it feels more like you are spending money.
“In many ways it doesn’t feel as real if you are using plastic and it’s easy to tap away without realising just how much is coming out of your account.
Constant stress
"Seeing how much cash you are giving away can make you want to part with it less.
“Using cash allows a more mindful approach and slows everything down. You are more likely to only buy what you need rather than all the things you want.
“Lots of businesses have noticed an increase in people paying with cash, including my hairdressers, so lots of people are now using the method to help them better manage budgets.
“This is no surprise, given how costs have gone up. According to data I read, some foods have gone up 200 per cent and our wages haven’t gone up that much. Lots of us are living with the constant stress of whether we will have enough money left to pay the bills.
“Money worries can create huge amounts of stress and lead to all sorts of health issues, so any way of better controlling your finances is good for your mental health.”
A Which? poll revealed 52 per cent of us find using cash helps us keep track of spending, and one in five who do not use cash say they will start if the cost-of-living crisis gets worse.
But cash is getting harder to find in some areas.
Cash machine network LINK says the number of free-to-use ATMs fell by 13,000, almost 24 per cent, from 2017 to 2020.
And a Commons briefing paper revealed that from 2012 to 2020, the number of banks and building society branches fell 28 per cent.
Banking hubs, which let customers of multiple banks withdraw and deposit cash, aim to plug the gap.
Run by not-for-profit firm Cash Access UK and operated by Post Office staff, around 90 new hubs are due to open in the coming year.
Many businesses are also now card-only, and while money is sometimes described as “legal tender” there is actually no legal obligation on firms to accept cash.
But some businesses are bucking the trend.
Stella Coombe runs independent gift shop Polyester Saltburn in Saltburn-by-the-Sea, North Yorkshire.
The 59-year-old trader has noticed a huge rise in people using cash in recent months, and said: “The reason so many people have gravitated towards buying online is because it is so convenient, so the easier I can make it for people to complete a transaction, the better.
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“Lots of older people definitely prefer cash as they’re mindful of budgeting. On the whole, most people prefer card or digital payments and as a retailer I don’t mind which they use.
“From a business perspective it’s easy enough for me to nip to the Post Office to deposit cash in my bank, and I’ve ditched £4.99 prices and round up to £5 instead so I’m not constantly hunting for change.”
PAY IT SAFE WITH CASH
By Martyn James
PEOPLE often turn to cash when money is tight.
Having tangible money in your pocket helps you know how much you have to spend, whereas virtual money is dangerous, as it’s hard to keep track of.
If you’re using cash, plan your budget and only take out the money you need and carry two wallets or purses to foil muggers.
If you keep lots of cash at home, remember that many insurers won’t cover you for cash robberies.
At ATMs, watch for muggers.
Go into a bank branch where possible, and only take out what you need.
Remember, too, that some notes are fake.
Watch out for £50 notes and only take these from banks.