We do not yet live in an entirely cashless society. There are certain circumstances where cards are necessary, and also scenarios where it’s better to use cash—knowing if you should use cards or cash and when is not always easy to understand. This article will offer some scenarios that will illustrate how to make these decisions.

Use a Card When You Want Additional Purchase Protection

Cards are an excellent way to protect major purchases. Many cards come with perks, such as extending manufacturer warranties by a year. Credit cards can also give reimbursements or replacements for purchases that were damaged or stolen within 90 to 120 days. With that sort of protection, you can feel safer when you make long-term, expensive purchases.

Do Not Use a Card When You Want Something You Cannot Afford

Credit card lines are not an extension of your income, no matter how much you would like them to be. Whatever the purchase might be, big or small, if it’s not in your budget, a credit card is not the solution. Those costs will eventually come back around. There is a reason why wallet accessories make space for cash and cards—both are still needed in today’s economy.

Use Cash When You are Splitting a Purchase With Other People

Deciding to use cards or cash and when can be difficult, but there are some scenarios where cash is almost always appreciated. When you’re eating with friends at a restaurant and it comes time to pay the bill, splitting everything between you will be much simpler if everyone has cash. They can just throw their bit on the table without forcing the wait staff to deal with a bunch of cards.

Do Not Use Cash When a Card Offers Rewards

Some credit cards offer rewards that no one should ignore. American Express, for instance, offers a percentage back if you buy enough groceries using their card. When people ignore these advantages and pay with cash, they’re throwing money down the drain. Pay attention to the advantages your card can offer and be wise about where and when you spend.