Personal Finance

Who is using all this cash?

  • Last Updated:
  • Apr 21st, 2017 6:40 am
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Deal Fanatic
Apr 20, 2011
6564 posts
1860 upvotes
ON
People being paid under the table in cash.
Notice the large increase in 50s/100s?
Most people for spending cash use 20s.
Last edited by aqnd on Apr 15th, 2017 8:57 pm, edited 1 time in total.
Member
User avatar
Mar 9, 2012
482 posts
129 upvotes
KITCHENER
FoFai2015 wrote:
Apr 15th, 2017 8:13 pm
I have not seen a vending machine that takes bills. But I have seen some that take cards. (I wish the one at work had that feature.)
Really? I've seen quite a few that take the bills. Though for vending machines, I think they all should take CC, IMHO, but I guess it's too costly to change (pun intended) them.
Deal Addict
Dec 21, 2011
2835 posts
438 upvotes
London
Kijiji buyers and sellers.
Drug users and dealers (including those leveraging their own prescription drugs for cash).
Sex workers and customers.
Deal Addict
May 15, 2013
1143 posts
174 upvotes
Montreal
apnayloags wrote:
Apr 15th, 2017 1:42 pm
Cash is king, its needed for everything.
do u pay bus fare with CC/debit? lol
I pay my monthly pass with CC. What's the "lol" for?
Deal Addict
Nov 24, 2013
3595 posts
801 upvotes
Kingston, ON
jeff1970 wrote:
Apr 15th, 2017 7:30 pm
I was justing thinking the other day, now with the polymer notes, wouldn't it be nice to have $1 ad $2 bills again? I hate loose change. With a serious passion.

Oh well...
If you spend any amount of time in the US, Canada's system just works better in comparison.

Pennies? Useless, annoying, transaction slowdown. It was a great thing to get rid of them.

Dollar bills? They fill up the wallet. Too many small value bills are annoying as change too due to mixing format. Buy something for $2.44 with a $5 bill and you get 2 $1s, 2 quarters, a nickel, and a penny. Compare to a twoonie, 2 quarters, and a nickel. Nobody uses $2s even though they've been in print forever. You can't tell them at a glance the way you can a loonie and twoonie.


Anyway, back to Canada. For the older generation, or even just blue collar types, cash is king. Some people budget better with something tangible than with a mental note of their bank balance. I forget the exact statistic, but if it's still 30-33% of retail transactions that's a huge number. Add in the 'cash economy,' from legal Kijiji trading, to underreported service industry, to truly illegal things.
Deal Addict
Sep 23, 2009
3466 posts
848 upvotes
Kiraly wrote:
Apr 15th, 2017 8:21 pm
You wouldn't hate loose change so much if the coin sizes actually matched the values they represent. The dime and quarter's sizes have been the same for 147 years. If you could buy a dollar's worth of stuff with a coin the size of a dime (which is actually how things were up until the 1960s) coins would actually be the useful things they were designed to be, and not the nuisances they have become.
Go and talk to Richard Nixon around 1971 when the US went off the Bretton Woods agreement.

Once governments could print money without being accountable and having to repay it with something tangible - gold - the value of $1 Dollar evaporated.

Link:

https://en.wikipedia.org/wiki/Bretton_W ... ixon_Shock
Sr. Member
Mar 1, 2016
613 posts
182 upvotes
i know quite a few older people who refer cash, so aging of population might also have impact
Member
Mar 30, 2009
344 posts
41 upvotes
Windsor
- Older people who still strictly use cash the majority of the time.
- People who keep a budget and don't like keeping track of things in a spreadsheet or using automatic spending tracking applications. (It's very common for people to budget by withdrawing some cash at the beginning of the week and restricting all discretionary spending to be made out of that withdrawal, eschewing electronic payments)
- Black market / under the table transactions.
- Repayment of informal debts (friend covered you for something because you were short, you pay them back later in cash, though EMTs are also popular for this).

Those are the reasons I have seen often.
Member
Mar 30, 2009
344 posts
41 upvotes
Windsor
FoFai2015 wrote:
Apr 15th, 2017 8:13 pm
I have not seen a vending machine that takes bills. But I have seen some that take cards. (I wish the one at work had that feature.)
I've seen plenty of vending machines that take banknotes, but they're a huge PITA a lot of the time given the terrible condition banknotes are often in. I've also seen ones that take credit cards but I have yet to see one that takes interac (haven't tried to see if visa debit works on them though, since I generally prefer credit when possible).
Member
Dec 5, 2015
462 posts
124 upvotes
Thornhill, ON
Small businesses to evade paper trail
[OP]
Member
Jan 9, 2011
433 posts
185 upvotes
Vancouver
I don't think the underground economy explains all of the 74% increase in cash in circulation over the last 12 years. Perhaps it's foreign demand for our dollar being used as a reserve currency.

This says that 3/4 of all US $100 bills are taken out of the US and held in other countries as reserves: http://fortune.com/2016/06/17/100-bill/
And this says that demand for Australian $100 bills is largely coming from China: http://www.theaustralian.com.au/busines ... 043174aa0c

Maybe this is affecting Canadian currency too.
Member
Nov 6, 2015
377 posts
114 upvotes
Guelph, ON
apnayloags wrote:
Apr 15th, 2017 1:42 pm
Cash is king, its needed for everything.
do u pay bus fare with CC/debit? lol
It's needed for practically nothing. You're living in the 50's.
Deal Addict
Dec 12, 2009
1958 posts
592 upvotes
Toronto
Doubleshot wrote:
Apr 16th, 2017 12:39 pm
Small businesses to evade paper trail
Or to avoid the costs of setting up and maintaining a debit/credit terminal and all the transaction fees. If they really want to or need to put it on a credit card, they can send it to me via paypal or a courtesy cheque.
Deal Expert
User avatar
Aug 18, 2005
16535 posts
1599 upvotes
GTA West
I think it partially has to do with skyrocketing sundry bank fees.

You get charged $45 for an NSF, this could ruin the life of a low income type person. One delayed cheque clearance can snowball into an avalanche of NSFs, overdrafts, late fees. What a mess! What's the defence to this? Pay cash!

Some of us here normally carry $10K floats in our chequeing accounts, so maybe some people don't see this angle.
- Not Collecting AIR MILES Since 2016/07 -
- Casual Gastronomist -
Sr. Member
Mar 1, 2016
613 posts
182 upvotes
Kiraly wrote:
Apr 16th, 2017 12:54 pm
I don't think the underground economy explains all of the 74% increase in cash in circulation over the last 12 years. Perhaps it's foreign demand for our dollar being used as a reserve currency.

This says that 3/4 of all US $100 bills are taken out of the US and held in other countries as reserves: http://fortune.com/2016/06/17/100-bill/
And this says that demand for Australian $100 bills is largely coming from China: http://www.theaustralian.com.au/busines ... 043174aa0c

Maybe this is affecting Canadian currency too.
US is different since you have countries actually using the US dollar has currency. Interesting about the OZ$ but not sure who would hoard Can$, since most countries i've been wanted nothing to do with it
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