How do you usually pay for something under $5?

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The529guy
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How do you usually pay for something under $5?

Post by The529guy »

From Marketwatch.com: Cash or credit? Most people use cash for small purchases, subtitled "Millennials, you’re paying for things the wrong way"

Summary: Older people like cash while younger people like debit cards

For small purchases, I suspect Bogleheads are more likely to use cash-back credit cards than John Q. Public... am I right?

If I'm buying a $2 coffee, you bet your sweet bippy I want my 4 cents back [on my credit card statement]!
Last edited by The529guy on Wed Aug 27, 2014 2:39 pm, edited 1 time in total.
Gropes & Ray
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Re: How do you usually pay for something under $5?

Post by Gropes & Ray »

Cash is an annoyance. Please, everyone use cards. I don't want to stand there while the cashier counts out $0.78 in change.
investor1
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Re: How do you usually pay for something under $5?

Post by investor1 »

Cashiers! HA! Go to self checkout.
sunnyday
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Re: How do you usually pay for something under $5?

Post by sunnyday »

My payment order of preference is:

1) Phone (as soon as this becomes available)
2) Credit Card (assuming the place takes AmEx)
3) Debit Card (if they don't take AmEx)
4) Check (If they don't take plastic, I keep a few in my car)
5) Cash -- never, I don't carry cash on me.

If you're concerned about fraud, sign up for fraud alerts via your credit/debit companies
Rodc
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Re: How do you usually pay for something under $5?

Post by Rodc »

Gropes & Ray wrote:Cash is an annoyance. Please, everyone use cards. I don't want to stand there while the cashier counts out $0.78 in change.
Half the time cash is faster, because you don't have to wait for the card to go through.

I balance my check book so I generally do not use debit cards anymore.

So mostly cash back credit card, but I do tend to carry a little cash for small purchases. This is getting more rare, no rhyme or reason for when I use cash.
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Rob5TCP
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Re: How do you usually pay for something under $5?

Post by Rob5TCP »

Under $5 always cash - over $10 always c.c. (points).
In between toss up (some places have $10 minimum).
sketchy9
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Re: How do you usually pay for something under $5?

Post by sketchy9 »

The529guy wrote:From Marketwatch.com: Cash or credit? Most people use cash for small purchases, subtitled "Millennials, you’re paying for things the wrong way"

Summary: Older people like cash while younger people like debit cards

For small purchases, I suspect Bogleheads are more likely to use cash-back credit cards than John Q. Public... am I right?

If I'm buying a $2 coffee, you bet your sweet bippy I want my 4 cents back!
You and I could not disagree more. The penny is a ridiculous anachronism, especially given how inflation has made items under $1 almost extinct. Aversion to pennies is why I almost never pay in cash-- who needs several completely worthless coins jangling around? In fact, I would be on board with eliminating all fractional coins except quarters and 50 cent pieces (halves? there's no good name for these). The ultimate insult is that a penny costs more to manufacture than it is worth.
Quickfoot
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Re: How do you usually pay for something under $5?

Post by Quickfoot »

I'm 33 and I never pay cash (though I do carry some in case my debit card doesn't work). Using a card has nothing to do with cash back, it's about convenience and not having to worry about losing money through losing my wallet or being robbed. I also tend to lose change so it costs me money to use cash.
Last edited by Quickfoot on Wed Aug 27, 2014 2:43 pm, edited 1 time in total.
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The529guy
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Re: How do you usually pay for something under $5?

Post by The529guy »

We do agree. I don't want to pay cash for anything. See edit in OP.
sketchy9 wrote:
The529guy wrote:From Marketwatch.com: Cash or credit? Most people use cash for small purchases, subtitled "Millennials, you’re paying for things the wrong way"

Summary: Older people like cash while younger people like debit cards

For small purchases, I suspect Bogleheads are more likely to use cash-back credit cards than John Q. Public... am I right?

If I'm buying a $2 coffee, you bet your sweet bippy I want my 4 cents back!
You and I could not disagree more. The penny is a ridiculous anachronism, especially given how inflation has made items under $1 almost extinct. Aversion to pennies is why I almost never pay in cash-- who needs several completely worthless coins jangling around? In fact, I would be on board with eliminating all fractional coins except quarters and 50 cent pieces (halves? there's no good name for these). The ultimate insult is that a penny costs more to manufacture than it is worth.
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Re: How do you usually pay for something under $5?

Post by livesoft »

I use a 2% cash-back card for every purchase if I can. The smallest amount I have charged is $0.02 and the largest so far has been a half-year of college expenses (tuition + room & board + fees).
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sketchy9
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Re: How do you usually pay for something under $5?

Post by sketchy9 »

The529guy wrote:We do agree. I don't want to pay cash for anything. See edit in OP.
sketchy9 wrote:
The529guy wrote:From Marketwatch.com: Cash or credit? Most people use cash for small purchases, subtitled "Millennials, you’re paying for things the wrong way"

Summary: Older people like cash while younger people like debit cards

For small purchases, I suspect Bogleheads are more likely to use cash-back credit cards than John Q. Public... am I right?

If I'm buying a $2 coffee, you bet your sweet bippy I want my 4 cents back!
You and I could not disagree more. The penny is a ridiculous anachronism, especially given how inflation has made items under $1 almost extinct. Aversion to pennies is why I almost never pay in cash-- who needs several completely worthless coins jangling around? In fact, I would be on board with eliminating all fractional coins except quarters and 50 cent pieces (halves? there's no good name for these). The ultimate insult is that a penny costs more to manufacture than it is worth.
Apologies, I misinterpreted what you meant by "I want my 4 cents back". You meant rewards, I was thinking change for some reason (hence the penny rant).
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The529guy
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Re: How do you usually pay for something under $5?

Post by The529guy »

sketchy9 wrote:
The529guy wrote:We do agree. I don't want to pay cash for anything. See edit in OP.
sketchy9 wrote:
The529guy wrote:From Marketwatch.com: Cash or credit? Most people use cash for small purchases, subtitled "Millennials, you’re paying for things the wrong way"

Summary: Older people like cash while younger people like debit cards

For small purchases, I suspect Bogleheads are more likely to use cash-back credit cards than John Q. Public... am I right?

If I'm buying a $2 coffee, you bet your sweet bippy I want my 4 cents back!
You and I could not disagree more. The penny is a ridiculous anachronism, especially given how inflation has made items under $1 almost extinct. Aversion to pennies is why I almost never pay in cash-- who needs several completely worthless coins jangling around? In fact, I would be on board with eliminating all fractional coins except quarters and 50 cent pieces (halves? there's no good name for these). The ultimate insult is that a penny costs more to manufacture than it is worth.
Apologies, I misinterpreted what you meant by "I want my 4 cents back". You meant rewards, I was thinking change for some reason (hence the penny rant).
No problem. I'm comfortable with less change in circulation.

Once upon a time, a train ticket machine failed to accept any of my credit cards, so I had to use a $20 bill. Getting the change in $1 coins was a nightmare. I should have had an extra pair of suspenders just to hold my pants up.
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Re: How do you usually pay for something under $5?

Post by wannabebogler »

Under $5, I pay cash. As a small business owner, I understand the credit card fees can suck the life out of you. For an amount this small (usually coffee), I see no reason why the CC company should make $$. I would rather the company get the (small) rewards. I understand that I may lose out on some cash back reward but it's really nothing in the grand scheme of things.

Over $5? My altruism begins to shrink. :-)
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Re: How do you usually pay for something under $5?

Post by Crow Hunter »

I use my credit card for everything that doesn't charge me extra to use and I am 40. I have been doing this since the late 1990s.

I usually have a few dollars ($20-40)in my wallet and I usually keep spare change at home to use in the machines here at work since they started charging $.10 extra to use the CC.

If we are going on a trip out of our local area, I usually keep more cash with me just in case.
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Re: How do you usually pay for something under $5?

Post by dolphinsaremammals »

About the only things I buy that cost less than $5 are at the farmers' market or parking garage cards, where I pay cash, or at 7-11 where I always use a credit card. Elsewhere, even if an item costs less than $5, I'm usually buying more than one thing, so it totals up.
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Re: How do you usually pay for something under $5?

Post by pennstater2005 »

Credit card.
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Re: How do you usually pay for something under $5?

Post by Andyrunner »

Depends, big store like walmart or target, credit card. Small business where they probably lose money on a credit card swipe due to fees, I pay cash. Try to support the small guy.

edit to add: If its a small business, no matter what the price I try to pay cash.
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Re: How do you usually pay for something under $5?

Post by toto238 »

I never carry cash. ever. It's just so durned inconvenient. If a business doesn't take cards, it's not going to get my business. It's nothing personal, but it's pretty much become standard for all businesses to offer the ability to pay with cards.
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Re: How do you usually pay for something under $5?

Post by Gropes & Ray »

Rodc wrote:
Gropes & Ray wrote:Cash is an annoyance. Please, everyone use cards. I don't want to stand there while the cashier counts out $0.78 in change.
Half the time cash is faster, because you don't have to wait for the card to go through.
This is true in a few places with older style card machines, which are quickly becoming extinct. I stood in line at Jimmy John's the other day (subs so fast you'll freak) and I think five people in front of me paid cash. It took longer to count change than to make the sub. I almost exploded. Have I ever mentioned that I'm unreasonably impatient?
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The529guy
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Re: How do you usually pay for something under $5?

Post by The529guy »

investor1 wrote:Cashiers! HA! Go to self checkout.
I once saw an individual have a meltdown at a grocery store self-checkout. The machine just would not accept their $20 bill, no matter how many times they tried. The "Sorry, cannot accept cash" sign taped to the machine made little difference.

Self-checkouts are great as long as you're not stuck behind a prolonged "user error" situation.
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Re: How do you usually pay for something under $5?

Post by munemaker »

The529guy wrote:From Marketwatch.com: Cash or credit? Most people use cash for small purchases, subtitled "Millennials, you’re paying for things the wrong way"

Summary: Older people like cash while younger people like debit cards

For small purchases, I suspect Bogleheads are more likely to use cash-back credit cards than John Q. Public... am I right?

If I'm buying a $2 coffee, you bet your sweet bippy I want my 4 cents back [on my credit card statement]!
I use a rewards credit card for anything over a buck. I NEVER use a debit card and minimize the use of cash to the degree possible (vending machines at work and the like). True, the accumulated rewards are a plus, but if there were no rewards, I would still use a credit card so I don't need to replenish the cash in my wallet as frequently. Also, credit card is a lot faster than cash in most cases.

Looking at the flip side, why would you use a cash rather than a credit card?
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Re: How do you usually pay for something under $5?

Post by Jack FFR1846 »

Depends. At mcdonalds an sit down restaurants, cc is faster. At the mom and pop pizza place, cash is faster and I would rather not saddle them with the cc %.
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Re: How do you usually pay for something under $5?

Post by dgdevil »

The529guy wrote: Self-checkouts are great as long as you're not stuck behind a prolonged "user error" situation.
Or buying booze in California.

Bogleheads would like the ABBA Museum in Stockholm. It is a completely cash-free zone.
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Re: How do you usually pay for something under $5?

Post by mhc »

My favorite taco truck only takes CC's for purchases over $5. Two tacos = $4. Cash it is.

Convenience determines if I use cash or CC for a purchase. I find that there are still many cases that cash is faster. Also, in my part of the country, there are many places that do no accept CC's. I have been to places that the CC machine goes down. I always carry cash.
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gerrym51
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Re: How do you usually pay for something under $5?

Post by gerrym51 »

if it's a convenient place for credit card i use my cash back card. only if not do i use cash
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Re: How do you usually pay for something under $5?

Post by Ged »

For small transactions I generally use cash. I don't like spraying my CC number all over the place. I know lots of people who have had their number compromised multiple times. Restaurants, bars, gas stations, grocery stores, convenience stores and bars are all places that harbor cc thieves.
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Re: How do you usually pay for something under $5?

Post by ubermax »

Cash , I think you spend more if you whip the card out all the time , my opinion .
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Re: How do you usually pay for something under $5?

Post by toto238 »

ubermax wrote:Cash , I think you spend more if you whip the card out all the time , my opinion .
That is classic consumer behavior. But perhaps not typical Boglehead behavior. Whether I'm using cash, debit or credit, my sensitivity for cost is identical. I'm not going to purchase more or less depending on my payment method. I can't think of a single instance in which my payment method actually came into my consideration between two products.

Think of it as a 2-decision process. The first decision is what you'd like to buy. Once you've completely decided that issue, then and only then do you ask the second question, which payment method would you like to use.
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Re: How do you usually pay for something under $5?

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