Meet the Royal Family of Payment Methods

Posted on October 19, 2011 Written by 12 Comments
Royal family of payment methods

Many people say that cash is King, but lately there’s been some debate on the resurgence in cash popularity and whether that fact still rings true.

In my estimation there is only one King entitled to wear the crown, but his Queen is close behind and next in line to rule the financial kingdom. His heirs should not be cast aside either.

It’s time to meet the Royal Family of our financial world. They are the current and future methods of payment and are held in high regard. (trumpet sounds!)

Your Highness the King: Debit Card

I would argue that sometimes cash sits in the top spot, but what ruler doesn’t have an amazing support system? With the ever increasing popularity of perks, rewards and cash back when using a Debit Card, the King is holding onto the thrown (for now).

The Debit Card has less fees associated with it for vendors and (normally) no fees for consumers. He’s accepted online, in store and around the globe. He is rarely seen without the same authoritative zero liability protection as a credit card. And in the event he is lost, stolen or experiences fraudulent charges (how dare they!) he still offers powerful benefits.

Your Highness the Queen: Cash

Cash money is a universally accepted method of payment, and while she can smooth talk her way into anyone’s wallet, she ain’t cheap. There is a high price to pay if you don’t respect her and her King too.

Green is good everywhere but you gotta work for it. Countries all over the world accept cash currency as payment or for exchange. Lots of banks offer 24/7 ATM’s in a wide variety of locations, so she makes it easy to keep your valuables secure. It’s important not to underestimate her power, because when the King is out of commission she temporarily takes over the thrown.

Your Royal Prince/Princess: Mobile Wallets/Digital Payments

These up and coming newbies are becoming more and more popular with this technology driven generation. They still have testing to endure, and a few kinks to work out since not everyone has accepted the “new age” lifestyle they offer.

But they show great potential and signs of long lasting maturity. While they may not be the King and Queen yet, one day you may see them take over the thrown.

The Common Folk: Credit Card

If you want to be rich, you have to spend like one, and if you want to be poor you spend like a poor person. The Common Folk or the Credit Cards are those that survive but often live beyond their realm of authority.

They don’t possess many advanced skills and are just the basic citizens of society. The Credit Cards are noble for sure, working hard, caring for their families, but never really understanding the true potential (or financial freedom) of being a member of the royal family.

How to Become a Royal

It’s pretty easy to become part of the royal family though. Make the decision that you will no longer just be nominal, and that you will educate yourself, polishing your skills till they shine. It’s time to make a change, stand out from the crowd and walk with your head held high. If you want to be a king or queen, then spend like one.

Grab your debit card and some cash for when you make purchases, and put the credit cards in their rightful place. Using credit cards or loans irresponsibly will keep you among the common folks. Others might think you walk around like you’re entitled, but little do they know, you are…and so are they!

Who is the King of your wallet?

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Filed Under: Credit Cards, Personal Finance Tagged: , , , , ,
  • Jan

    cash is still king for me. With cash i can negotiate a discount more easily than with a debit card.
    Maybe it has something to do with the black market ;)

    • http://carefulcents.com Carrie

      I definitely like my cash too, and I have many success stories of using it to negotiate a better price. Thanks for reading and commenting Jan.

  • http://www.dollarversity.com Eric J. Nisall

    Cash would be my court jester. It’s really appropriate, actually, because each time they issue new designs for bills they look more like Monopoly money and I get a laugh out of it. Kind of like the currency used in other countries that are a rainbow of colors that look like play money. Give me a method of payment that is easy to carry, readily accessible without having to drive around searching for a way to get it (without paying additional fees for accessing my own money), one which has security in case of loss or theft and pays me for using it any day!

    • http://carefulcents.com Carrie

      LOL! Oh yes, it seems the government is always changing the look of our bills. It does kind of look like play money. Cash does have some drawbacks, but a few perks as well. I still carry my plastic in the event cash fails me. Thanks for reading and commenting

  • http://www.ourjourneytozero.com Travis @DebtChronicles

    I’m torn between my debit card and cash….Cash on hand keeps me accountable for how much I spend because I can touch and feel it. But if I have cash in my wallet I tend to spend it. Debit cards are great as long as I keep my account balance updated. But if they start charging to usage…ugh.

    • http://carefulcents.com Carrie

      As you can see I’m torn between cash and my debit card for the top spot, but what King doesn’t have a strong female counterpart?! I feel they work pretty well together.

      Banks charging for debit card usage is so lame….. It might be time for people to find new/better banks. Thanks for reading and commenting Travis!

  • http://www.lifeskillsacademy.info Dianne

    At the top of my throne sits my Chase Credit card that offers anywhere between 1 – 5% back on purchases. I ALWAYS pay the balance in full. This system also helps me to track my expenses. Most of my purchase are usually groceries, used books from Amazon and gas. These are purchases I would be making anyways so using my credit card allows me to keep the cash in my bank account that is earning a small amount of interest. The key is that you must ALWAYS pay the full balance. I also keep a small amount of cash in my wallet for the occasional little impulse purchase – and NEVER PUT THOSE ON MY CARD.

    • http://carefulcents.com Carrie

      That’s smart advice for sure. For some people they can use credit cards responsibly and that’s the key. So bravo to you for tracking expenses and handling them properly. I actually used my Chase Freedom credit card until this past year, but my new PerkStreet debit card gives me 1-5% cash back bonus just like Chase did, and I don’t have to worry about paying the bill in full.

      Keeping cash for small impulse purchases is a great tip, I will have to implement that more. Thanks for reading and commenting Dianne.

  • http://financiallyconsumed.com Hunter @ Financially Consumed

    Cash is king in our house! We really spend less each pay period when we withdraw a realistic allowance. It makes it easier to stick to limits when you can see dwindling pile of money.

    • http://carefulcents.com Carrie

      That is a very good point. It’s easy to keep spending in perspective when you barely have any cash in your wallet! :)

  • David Weddell

    Credit Card is King here. AMEX Blue Cash gets me $150-200 a month in free cash. Always paid in full. Backup Visa for the places that don’t take American Express. Benefit- if my wallet is ever stolen I make two phone calls and start wallet shopping, 0% liable and the thief doesn’t have direct access to my bank. Of course, I have a debit card at home for actual bank use but it doesn’t live in my wallet.
    At the risk of sounding pretentious (which I am not), is it really that difficult to control spending with a credit card? I just hold in my mind the idea that I’m spending the money in my checking account, even if it doesn’t actually leave it until a few weeks later.

    • http://carefulcents.com/ Carrie Smith

      For some people it’s quite easy to control spending money on a credit card. But as a reformed “credit card-aholic” it’s more difficult for me. I have gotten a lot better at it, but I’ll always have a weak spot in using plastic for my spending. It’s nice to hear that people like you are successful with it though, keep up the good work!