Even as digital payments dominate, experts recommend keeping a small cash reserve for when technology fails.
In a world where tap, swipe, and scan are the new norms of payment, cash might seem like a relic of the past. But despite its declining use, most Americans still carry at least a small amount of cash — and financial planners say that’s a wise move.
According to a recent Federal Reserve survey, the average American keeps $67 in their wallet. While 83% of consumers reported using cash at least once in the past 30 days (down from 87% in 2023), cash continues to serve an essential role — particularly in emergencies or technical disruptions.
Why Carry Cash?
Financial planners emphasize that cash can be a lifesaver when digital payments aren’t an option. Power outages, dead phone batteries, malfunctioning card readers, or businesses with card minimums are all situations where a few bills in your wallet can make all the difference.
"Cash can bridge the gap," says Christopher Rand, a certified financial planner (CFP) in San Diego. "It’s about being prepared when things go wrong."
How Much Cash Should You Carry?
The right amount varies depending on your daily routine and needs. Rand suggests keeping enough to cover common expenses — like gas, parking, food, or tipping — without carrying so much that you’d worry about losing it. “Generally, $50 to $100,” he says.
Melissa Caro, a CFP based in New York, usually carries $60 to $80. “If I know I’ll need it — say for tipping, parking, or certain small businesses — I’ll add a bit more,” she explains. Her personal test: “If I lost my phone and needed a cab home, would I be covered? That’s my panic point.”
Read more: The Future of the Penny – What Happens When It’s Gone?
When Technology Fails
For Leslie Beck, a CFP in New Jersey, the importance of cash became clear during natural disasters. “When Hurricane Sandy hit the NYC area, ATMs were out, internet was down in many areas, and cash was king,” she recalls. Beck recommends keeping at least $50 for such emergencies.
Other planners learned the lesson the hard way. Brett Anderson, a CFP in Minnesota, used to carry less than $5 until his credit card was declined due to a fraud alert. “It’s inconvenient and embarrassing — especially when you're a financial advisor,” he says. Now, he keeps a couple hundred dollars on hand.
The Bottom Line
You don’t need to carry a lot of cash — just enough to cover small purchases or emergency situations. Most financial experts agree that $50 is a sensible amount.
“Having large amounts of cash in your wallet makes you more susceptible to losing the funds,” warns Tipiwa Walker, a CFP in California. Unlike credit or debit cards, “cash simply does not have the protections that cards do.”
Still, having a small amount of cash is not about rejecting digital tools. “It’s about having just enough to handle those moments when tech fails or feels like overkill,” says Caro.
In short: A little cash can go a long way — especially when you least expect it.
