Cash remains the way to go for a majority of affluent investors for purchases under $5.
Cash, credit or debit? That’s the question, and the answer differs depending on whether you are a woman answering the question or if you are a man.
Millionaire Corner surveyed more than 1,000 affluent investors and asked them how they would pay for an item that cost less than $5. Overall, 56 percent said they would use cash, 34 percent said they would use a credit card and 9 percent said they would use a debit card.
That’s the average of all investors, but there is some disagreement between the sexes about how to pay for such a small amount.
For an amount under $5, cash was preferred by 57 percent of women and 55 percent of men, which is not a wide difference. However, 12 percent of women would pull out their debit card while only 6 percent of males would do that, with the opposite difference showing up in credit card usage (39 percent of men and 30 percent of women).
Once the amount gets up toward $10, women are much quicker to pull out their debit card. Only 29 percent of women use cash in that instance, to 36 percent of men, but 18 percent of women use a debit card and only 9 percent of men do.
When the bill comes to under $20, only 17 percent of men and 16 percent of women use cash. Men turn to credit 70 percent of the time and to a debit card 11.5 percent of the time, while 61 percent of women would use credited and 21.5 percent would go for the debit card.
The survey included a few statistics that might be unexpected. The richer the investor, the more likely he or she is to use cash for small purchases. For those making a purchase of less than $5, 62 percent of investors with a net worth of $5 million said they would use cash, while only 50 percent of investors with a net worth between $100,000 to $500,000 would use cash.
In general, retired investors and business owners were more likely to use cash for small purchases, and the older the investor, the more likely it is they would use cash. Among investors under the age of 40, only 46 percent said they would use paper currency to make a $5 purchase.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.