The arguments for ditching notes and coins are numerous, and quite convincing. In the US, a study by Tufts University concluded that the cost of using cash amounts to around $200 billion per year – about $637 per person. This is primarily the costs associated with collecting, sorting and transporting all that money, but also includes trivial expenses like ATM fees. Incidentally, the study also found that the average American wastes five and a half hours per year withdrawing cash from ATMs; just one of the many inconvenient aspects of hard currency.

While coins last decades, or even centuries, paper currency is much less durable. A dollar bill has an average lifespan of six years, and the US Federal Reserve shreds somewhere in the region of 7,000 tons of defunct banknotes each year.

Physical currency is grossly unhealthy too. Researchers in Ohio spot-checked cash used in a supermarket and found 87% contained harmful bacteria. Only 6% of the bills were deemed “relatively clean.” […]

Stockholm’s homeless population recently began accepting card payments. […]

Cash transactions worldwide rose just 1.75% between 2008 and 2012, to $11.6 trillion. Meanwhile, non traditional payment methods rose almost 14% to total $6.4 trillion.

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The anal stage is the second stage in Sigmund Freud’s theory of psychosexual development, lasting from age 18 months to three years. According to Freud, the anus is the primary erogenous zone and pleasure is derived from controlling bladder and bowel movement. […]

The negative reactions from their parents, such as early or harsh toilet training, can lead the child to become an anal-retentive personality. If the parents tried forcing the child to learn to control their bowel movements, the child may react by deliberately holding back in rebellion. They will form into an adult who hates mess, is obsessively tidy, punctual, and respectful to authority. These adults can sometimes be stubborn and be very careful over their money.

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economics, psychology, theory | March 10th, 2014