El dinero en efectivo


Cash refers to paper money, metallic money, bearer bank checks and everything that has been conceived to be used as a means of payment. Focusing on paper money, which we call banknotes and metallic coins, we can say that just as there are many countries on the planet, we can also find different types of banknotes and coins, except for those countries that share the same, as is the case with most European Union countries.

According to specialists, the invention of paper money was born in China between 618 and 907 A.D. under the Tang dynasty. It quickly became popular because it weighed less than today’s coins and, because it was so light, it was very easy to transport. But as we can see with our own eyes, the coin never disappeared and continues to coexist with the banknote.


With the development of technology, the use of credit and debit cards is becoming more and more widespread. Even with the proliferation of mobile devices almost everywhere in the world, payment methods have evolved greatly in recent years. 

All payment methods have their advantages and disadvantages. Let’s see what are those of cash:


Accepted everywhere

One of the great advantages of cash is that it will always be accepted as a method of payment. Although it is now possible to pay small amounts with a card such as buying bread, having a coffee or paying for a cab, in some places there is still a minimum amount to be able to do so, and this varies from country to country.


Another plus point of cash compared to the card -but one that is changing thanks to technology- is speed. Depending on the amount of money and certain security measures of the entities, with the card you must enter the pin number and wait for authorization. And depending on the country and the establishment where you make the purchase, they may ask for identification.

Hinders impulse and unnecessary purchases

Cash has a very strong psychological impact on human beings because it is real, it is physical and we can see it and touch it. With credit or debit cards, money becomes something abstract, virtual, and changes our perspective on what we have and what we can spend. When using cash, we know that we have a specific amount and when consuming, we are aware that those bills and coins are being taken out of the wallet, so it makes compulsive purchases more difficult compared to “digital money”.  

You can’t spend more than you have

Another advantage of cash is that it is very useful to control expenses because if you do not have enough money to make a purchase, you will not be able to do it. These situations make us rethink our consumption, keep a budget under control and spend what is within budget. 



Carrying banknotes and coins on your person can be a source of insecurity due to the risk of loss or theft, putting your personal safety at risk. The truth is that both cards and money can be stolen, but the former have certain security measures that cash does not have, such as canceling them and even, if they have been used fraudulently, the money is usually refunded. On the other hand, cash is not recovered. 


Some purchases are not conceivable today with cash because of the inconvenience involved. Can you imagine paying your rent or buying a plane ticket in cash? The practicality of using the card or bank transfers makes them the preferred options for many people for certain purchases and transactions, especially for online purchases, which cannot be made with cash.


Saving cash and keeping it at home is also a risk because it is exposed to theft and insurance only covers a low amount. On the other hand, money at home does not generate interest. As with other assets, due to inflation, money loses value over the years. That is, because of the constant rise in prices. In addition, leaving money at home for many years, even if it is a legal practice, can cause different tax problems.