Even as more Americans tap, swipe or scan to pay, most still carry at least a little cash — and financial planners say that’s a good idea.
Americans keep $67 in their wallet, on average, according to a recent Federal Reserve survey on how people use their money. While cash remains widely carried, usage has been slipping: in 2024, 83% of consumers said they used it at least once in the past 30 days — down from 87% in 2023, according to the Federal Reserve.
Still, financial planners tell CNBC Make It that it’s worth keeping some on hand — particularly for situations when digital payments fall short. Whether it’s a power outage, a dead phone, a vendor with a card minimum or just the need to get home, cash can bridge the gap.
How much cash you should carry
The amount of cash you should have on hand depends on your routine, says Christopher Rand, a certified financial planner in San Diego. He recommends keeping enough to handle a typical expense if something goes wrong — whether that’s gas, food, parking or a tip — but not so much that you’d lose sleep if it went missing. “Generally, $50 to $100,” he says.
Melissa Caro, a CFP in New York, carries a similar amount — usually $60 to $80, depending on her plans. “If I know I’ll need it — say for tipping, parking, or certain small businesses — I’ll add a bit more to my wallet,” she says. “A good gut check is: If I lost my phone and needed a cab home, would I be covered? That’s my ‘panic point.'”
Other planners emphasize the value of cash when tech fails altogether. Leslie Beck, a CFP in New Jersey, recommends keeping at least $50 in your wallet for outages and emergencies. “When Hurricane Sandy hit the NYC area, ATMs were out, internet was down in many areas, and cash was king,” she says.
Some people only start carrying cash after a mishap. Brett Anderson, a CFP in Minnesota, says he used to carry less than $5 — until his credit card was declined due to suspected fraud.
“It’s truly inconvenient and embarrassing, depending on who you’re with,” he says. As a “financial advisor, your real friends will never let you forget if your credit card gets declined, and they take financial advice from you, I’m just saying.” He now keeps a couple hundred dollars on hand as a backup.
The bottom line
You probably don’t need a lot of cash, and certainly shouldn’t carry more than you’d be upset to lose or have stolen.
“Having large amounts of cash in your wallet makes you more susceptible to losing the funds.” says Tipiwa Walker, a CFP based in California. Unlike cards, “cash simply does not have the protections that credit cards do.”
But having about $50 can be a smart backup for tips, low-dollar purchases or tech hiccups — even if you rarely use it, financial pros say.
Carrying cash isn’t about “replacing digital tools, but having just enough cash to handle those moments when tech fails or feels like overkill,” says Caro.
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