Half of Americans Feel Safer Holding Cash Over Other Investments

December 5, 2024 DINARRECAPS8

Half of Americans Feel Safer Holding Cash Over Other Investments Are They Right?

Laura Bogart Wed, December 4, 2024 GOBankingRates

These days, you can get the lowdown on virtually any kind of investment delivered right to your fingertips. You can Google information about stocks and instantly find articles, YouTube tutorials and explainers galore. Then there are the TikTokers sharing their stock picks. Or, if you really needed to, you could always ask Alexa — not the device, but your cousin, the financial advisor.

Yet, despite the abundance of investment information, a survey conducted by Empower suggests that cash still reigns supreme. Roughly 52% of people surveyed preferred to keep cash instead of exploring other investments.

At first glance, this information seems eye-popping. Can more than half of respondents really prefer stashing money in their wallets over growing it through investments? And is that even wise?

The answers are, unsurprisingly, more complicated than you might think.

Cash Can Feel Like a Safeguard Against Uncertainty

Safety is the name of the game when it comes to Americans’ passion for cash. About 49% of survey respondents said they felt safer holding cash compared to other investments. This anxiety is fueled by uncertainties in the market, particularly fears of a looming recession.

But everyday worries about being caught unprepared in an emergency also contribute to the “cash is king” mentality. About 69% of respondents said they carried cash for emergencies, while 59% appreciated the quick accessibility of being able to pull out cash — like Superman rushing out of a phone booth.

Interestingly, survey respondents showed equal enthusiasm for carrying cash as a safeguard for peace of mind and for its reliability, with 39% of people agreeing on both counts.

Your Passion for Cash Doesn’t Have to Mean Zero Growth