How much cash you should keep in your wallet, according to money experts

Despite the increasing use of digital payments, most Americans still carry some cash, which financial planners believe is a wise practice. On average, Americans have $67 in their wallets, according to a recent Federal Reserve survey. While cash usage has been declining, with 83% of consumers using it in the past 30 days in 2024 compared to 87% in 2023, financial experts suggest keeping cash on hand for situations where digital payments may not be feasible, such as power outages or emergencies.

Financial planners recommend carrying an amount of cash that can cover unexpected expenses without causing undue stress if lost. This typically ranges from $50 to $100, depending on individual circumstances. Some advisors, like Melissa Caro and Leslie Beck, stress the importance of having cash as a backup in case of technological failures, emergencies, or natural disasters.

Carrying a moderate amount of cash, around $50, can serve as a smart backup for small purchases, tips, or instances when digital methods are unavailable. It’s not about replacing digital tools but having enough cash to handle situations where technology is unreliable. Financial professionals advise against carrying large sums of cash due to the lack of protections compared to credit cards.

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