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Why Are Germans Fond of Cash Payment?

In Germany, leaving cash and depending on credit cards or similar methods of payment is considered a sort of deviation from the right path. Germans are a nation that feels proud to be economical.

They pay their bills on time, avoid taking debts and do not even depend on a credit card. The word debt almost means a mistake or, better say, a ‘sin’ to them. So, why exactly are Germans so fond of spending cash rather than depending on a credit card? The experts have come with a number of explanations for that and here are four, the major of them.


1. Better overview of finances

In Germany, 80% of the people depend on cash payment as compared to 50% in USA. This is because the nation feels that they are able to maintain a complete control of their expenses when they rely on cash. When you come to pay for a thing you have bought from the shop, you take out the exact cash that is the price of that item and no more. You have rest of your cash with you to be in view of the money you have left for more shopping. This way you never over-spend.

2. Economic crisis of the past

Germany lost World War II and the economy suffered severe destruction. Germans restarted their life with much harder work and frugality. The miraculous recovery of Germany is symbolized by deutschmark. Today the reunited Germany has strongest and largest economy in Europe but the traces of hard times of their past have left deep effects on the psyche of the people. They prefer frugality over spendthrift, unlike Americans.


3. Preferring cash for anonymity

Maybe, the most important reason for paying through cash and not a credit card is the preference of the people to keep their anonymity intact. People are more cautious there and they simply do not trust the credit card companies or technology. They do not like any company or a middle man to keep their personal transactions in check.

4. More chances of saving

Germans cherish the habit of saving. By using just the cash for shopping, they are in better position to save even if the saving is a few coins. In the end it makes a good amount. By paying through credit card, each payment or transaction incurs some fees and the Germans do not find it necessary. In order to save that fee, they prefer using cash for all their payments and transactions.

Finance Expert, Writer, Entrepreneur

Tammy Richards is a passionate finance expert who is also a writer and business owner. With over 10 years of experience as a finance expert, Tammy wants to share her knowledge with her readers.

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