"Riding Out the Storm"-"Cash Only Day"
Wednesday, October 15, 2008SUZANNE PRATT: Finally tonight, thanks to everyone who responded to our requests for "Riding Out the Storm," and what you're doing to weather the financial crisis. We heard from Steve in Carson, California, who suggested Americans have a "Cash-Only Day." It's a day when we don't use any credit cards and only spend cash. Steve says, quote: "It will re-educate us all into buying only what we can afford. As a nation, we need to remember to live within our means." He proposed the first "Cash-Only Day" on Black Friday, the day after Thanksgiving. We asked Harriet Johnson Brackey, personal finance columnist at The South Florida Sun-Sentinel for her opinion.
HARRIET JOHNSON BRACKEY, PERSONAL FINANCE REPORTER, SOUTH FLORIDA SUN- SENTINEL: I think it's an interesting idea. I am not sure exactly who would be the most impacted other than the credit card companies on a day when you only use cash. The question, I think, really goes to how much money are you spending that you can afford to spend? And I think what this person is saying is, why don't we have a day when we only spend what we can afford, or my idea, even less than you can afford. And maybe have this day be a regular occurrence or a monthly thing in order to convince people to get their budgets down below their income instead of above by using credit. There is nothing wrong with that idea. I don't think the retailers will really like it, but I think it would be a sound strategy for most families to put themselves back on a good footing.
PRATT: To share your ideas on getting back on good financial footing, visit the "Riding Out the Storm" section of our Web site.
