Cash Could Be the Key to Keeping Black Friday Spending Under Control

SAN ANGELO, TX - As Black Friday kicks off the holiday shopping season, nearly 40% of U.S. shoppers plan to spend over $1,000 on gifts, according to a recent Gallup survey.

With options like credit cards, buy-now-pay-later services, and debit cards dominating holiday purchases, one expert suggests a counterintuitive strategy: using cash.

Jay L. Zagorsky, a business school professor and author of The Power of Cash, advocates for old-fashioned paper money to prevent overspending during the holidays.

“Cash creates an automatic budget—when you’re out of cash, you’re done shopping,” he said.

Consumers have good reason to consider cash. Research shows it reduces impulse spending by triggering the “pain of paying,” making people more mindful of purchases. Additionally, cash spenders avoid accruing interest, a common pitfall for the 50% of credit card users who carry balances, costing hundreds in fees annually.

Holiday budgets, often compared to dieting for their susceptibility to temptation, are more likely to succeed with cash, Zagorsky said. Shoppers can divide their budget into smaller amounts, only carrying what they need per trip.

Online shopping, projected to surpass $240 billion this season, complicates cash-only approaches but isn’t impossible. Shoppers can buy retailer gift cards with cash to fund online purchases, which adds a delay and forces additional consideration of spending choices.

Using cash also benefits underserved communities. Millions of Americans, including the elderly and low-income individuals, lack access to electronic payment methods and rely on cash. By spending in cash, consumers support businesses that accept it.

While Zagorsky acknowledges that cash won’t eliminate holiday stress, he emphasizes it as a practical tool to manage finances. With the stakes high this shopping season, it might be worth swapping plastic for paper.