Cash doesn’t hold the importance it once did. Today, most things can be paid for with plastic or by a money app like Venmo.
However, most people haven’t gone completely cashless. Specifically, the average American keeps $67 in cash on handaccording to a Federal Reserve survey.
If you’re conflicted on this, you’re not alone. GOBankingRates spoke with two financial advisors to find out if they think you should carry cash and if so, how much.
Trending Now: Fidelity Says This Is a Surprising Risk of Holding Too Much Cash — Do You Have Too Much?
For You: I’m a Retired Boomer: 6 Bills I Canceled This Year That Were a Waste of Money
Habitually carrying at least some cash makes sense, said James Mayo, certified financial analyst (CFA) and principal at IronFjord Wealth Management. As for exactly how much, he said there isn’t a magic number.
“Personally, I probably carry about $40 to $60 in cash at any given time,” he said. “I’m not paranoid, but I like being prepared — especially if I’m traveling or somewhere rural.”
High Yield Savings Offers
Check Out: Are You Rich or Middle Class? 8 Ways To Tell That Go Beyond Your Paycheck
Despite that, he said the cash can sit in his wallet for months without being touched, as he typically pays by card.
Sharing a similar mindset, Kyle DePaolo, co-founder and principal at DePaolo & May Strategic Wealth also carries cash in his wallet. Not too far off from Mayo, he suggested keeping $50 to $100 in cash on hand at all times.
Plastic can’t be used to pay for everything, which is one reason DePaolo keeps cash in his wallet.
“Sometimes, a granola bar at 3 p.m. is the financial crisis,” he said. “Cash comes in clutch when machines, valet stands or that one stubborn taco truck won’t take Apple Pay.”
He said paper currency can also be essential in certain areas. “If you find yourself in a cash-only cabin town that thinks Venmo is a skincare brand,” he added.
Credit cards and apps are convenient payment methods, but they rely on the technology powering them to function properly.
“Even in 2025, Wi-Fi can vanish faster than a toddler with your car keys,” DePaolo said. “A little physical currency can be your backup plan when tech goes dark.”
Some service providers accept tips electronically, others do not.
“You can’t Venmo the coat check or toss a Zelle at the band at your cousin’s wedding,” DePaolo said. “Carrying a few bills can make you that person who always tips generously and smoothly.”
Some people spend less when paying with cashDePaolo said. Since you can’t buy anything with an empty wallet, this can be an effective budgeting strategy for many.
