While some people like to keep cash on hand for emergencies, how much is too much?<\/p>\n
Bill from Illinois called into The Ramsey Show out of concern for his wife, 64, who wants to keep $75,000 in cash at home in a safe, which would make her feel \u201ccomfortable.\u201d (1)<\/p>\n<\/p>\n
\u201cOf course, being her husband, I want to make her comfortable,\u201d the 62-year-old co-hosts George Kamel and Jade Warshaw.<\/p>\n
His wife\u2019s hesitation with banks goes back a few years. Her father was placed in a nursing home in 2021 and passed away in 2024. With no savings or estate plan in place, the state audited his assets, forcing her to painstakingly track every penny he had spent over the previous three years.<\/p>\n
\u201cSo she\u2019s just sick of dealing with banks,\u201d said co-host Jade Warshaw. But what Bill described, Warshaw added, is really the result of poor estate planning \u2014 plus a dose of government bureaucracy.<\/p>\n
There\u2019s more risk in keeping that money at home than in a bank account, said co-host George Kamel. The cash could easily be lost to theft or a natural disaster like a fire or flood.<\/p>\n
She\u2019ll also lose out on compound interest with \u201cinflation eating away on the buying power versus having it grow in a high-yield savings account,\u201d Kamel said.<\/p>\n
But Bill\u2019s wife isn\u2019t alone in wanting to stash cash. A study by Piere, a financial management app, found that the average American keeps $544 in cash and valuables, such as bullion and precious gems, hidden around the house \u2014 in freezers, secret compartments and even under floorboards. (2)<\/p>\n
While 10% of Americans keep cash in a safe, 6% keep it under a mattress or pillow and 5% stash it in the fridge or freezer.<\/p>\n
The reason? The study pointed to a lack of trust in the economy as a major factor driving some Americans to mattress-stuffing to \u201cprotect their wealth outside of the traditional banking system.\u201d<\/p>\n
A 2023 FDIC study found that 4.2% of U.S. households \u2014 about 5.6 million \u2014 were unbanked, meaning no one in that household had a checking or savings account. Of those, 15.7% said they \u201cdon\u2019t trust banks,\u201d the second-most cited reason for avoiding them.<\/p>\n
Story Continues <\/p>\n
\u201cThe resurgence in mattress stuffing isn\u2019t some whimsical trend. It\u2019s a sign that many Americans feel uneasy about the financial system and are searching for something they can trust,\u201d said Piere CEO Yuval Shuminer in a release.<\/p>\n
Read more: Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US \u2014 with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in \u2018great wealth\u2019<\/a>. How to get in now<\/strong><\/p>\n Mattress stuffing might feel safer, but it comes with serious downsides. Cash can be stolen, misplaced or destroyed in a fire or flood. Homeowners insurance may cover cash and bullion, but the protection is usually limited to a small amount.<\/p>\n And while you might be worried about the economy, cash hidden at home won\u2019t keep up with inflation \u2014 especially if it\u2019s sitting next to the frozen chicken.<\/p>\n Think of it this way: cash under a mattress earns 0% interest. When you factor in inflation, your money actually loses value over time. Plus, high-interest savings account (HISA) deposits are protected by federal insurance, covering up to $250,000 per account, per insured bank.<\/p>\n Other options include a certificate of deposit (CD), which locks in a fixed rate for a set period, or a money market account, which blends features of checking and savings accounts.<\/p>\n In Bill\u2019s case, the bigger issue is estate planning. That means helping his wife understand that \u201cwhat happened in the past is not going to happen in the future,\u201d Kamel said, because they\u2019re setting up their life in a very different way than her father did.<\/p>\n Bill also worries about putting his wife in a tough financial spot if he ever needs long-term care.<\/p>\n But state spousal impoverishment laws are designed to ensure that if one spouse needs Medicaid-funded long-term care, the other will still have enough income and assets to live comfortably.<\/p>\n Kamel recommends that Bill and his wife work with an estate planning attorney to walk them through this process. Having a professional explain what will \u2014 and won\u2019t \u2014 happen in the future could give his wife the \u201ccritical confidence she needs.\u201d<\/p>\n That doesn\u2019t mean she can\u2019t keep some cash at home \u2014 just not all $75,000. Financial experts typically suggest keeping no more than $1,000 in cash on hand at home for emergencies \u2014 and storing it in a waterproof, fireproof safe.<\/p>\n Join 200,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/strong><\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.<\/p>\n The Ramsey Show (1<\/a>); Piere (2<\/a>); FDIC (3<\/a>); Weaver Insurance (4<\/a>); Illinois Legal Aid (5<\/a>.<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"While some people like to keep cash on hand for emergencies, how much is too much? Bill from…\n","protected":false},"author":3,"featured_media":314288,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[9331,21984,64,7780,93464,23925,158213,255,696,9593,29476,67,132,68],"class_list":{"0":"post-314287","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-americans","9":"tag-bank-account","10":"tag-business","11":"tag-dave-ramsey","12":"tag-estate-plan","13":"tag-george-kamel","14":"tag-jade-warshaw","15":"tag-personal-finance","16":"tag-retirement-savings","17":"tag-robert-kiyosaki","18":"tag-savings-account","19":"tag-united-states","20":"tag-unitedstates","21":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115397115462971130","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/314287","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=314287"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/314287\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/314288"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=314287"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=314287"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=314287"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}