What it is: Germans LOVE cash. Like, they use it for everything. Credit cards are way less common than in the US.
Why they do it:
- Cash is tangible—you physically see your money leaving your wallet
- It prevents overspending because once the cash is gone, it’s gone
- They’re more private about finances and don’t want everything tracked
- Less debt culture overall
The philosophy: If you can’t afford it with cash, you can’t afford it.
What we can learn: We swipe cards without thinking. Studies show people spend 12-18% more when using cards versus cash because it doesn’t feel “real.”
How I’m trying it: I started using cash for fun/discretionary spending. I withdraw a set amount each week, and when it’s gone, I’m done. It’s honestly helped me cut back on random purchases.