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4 Reasons to Ditch the Plastic This Holiday Season

November 20, 2019

The holiday season is synonymous with joy, celebration, and unfortunately, often, financial strain. As spending increases, it's vital to approach this festive period with a strategy that ensures financial health and well-being. One significant step in this direction is choosing cash over credit cards for holiday expenditures. Here are four compelling reasons to ditch the plastic this holiday season:

1. Minimize Overspending Risk

When using cash, consumers are more aware of their spending limits. Unlike credit cards, which can easily mask the reality of expenses, cash transactions provide a tangible sense of how much is being spent. This physical exchange of money can psychologically deter overspending, as one directly feels the depletion of funds. By using cash, shoppers are less likely to exceed their budget and can avoid the post-holiday financial hangover.

2. Avoid High Credit Card Interest Rates

Credit cards typically come with high-interest rates, averaging around 20-25%. These rates can significantly inflate the actual cost of purchases, especially when balances are carried over month to month. By using cash, consumers can avoid these exorbitant interest fees. In the long run, this can lead to substantial savings and prevent the accumulation of crippling credit card debt.

3. Reduce the Risk of Identity Theft and Security Breaches

The holiday season often sees a spike in security breaches and identity theft, particularly involving credit card transactions. Major credit card companies have experienced significant breaches, with millions of customers' information being compromised. By opting for cash, consumers eliminate the risk of their credit card details being stolen. This choice provides peace of mind and ensures personal financial information remains secure.

4. Prioritize and Control Holiday Spending

Cash usage encourages better budgeting and prioritization. By allocating a specific amount of cash for holiday shopping, individuals can effectively control their spending. This method allows for a clear division of funds, helping shoppers decide how much to spend on family, friends, and acquaintances. It also prevents impulsive purchases, ensuring that spending aligns with one's financial goals and priorities.


The decision to use cash over credit cards during the holiday season can significantly impact financial well-being. It promotes responsible spending, reduces financial risks, and ensures a more controlled and enjoyable shopping experience. While it might require a bit more planning and discipline, the benefits of this approach are substantial. This holiday season, consider ditching the plastic and experience the financial peace that comes with it.


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments may be appropriate for you, consult with your financial advisor.
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