4 ms·

Nearly 1 in 5 Americans are stashing cash at home in fear of a recession

17 points by spking 7y ago

onion2k 7y ago
Making these kinds of moves can prove costly. If you’re hiding cash in your home, you’re not able to take advantage of compound interest, which helps your money grow exponentially the longer you have it invested. Over here in the UK the highest interest you'll get on a savings account at the moment is about 0.5%, and most accounts give much less. While compound interest is a factor, it's a trivial one. The interest you're getting on money in the bank isn't going to save you in a recession.
- not_a_cop75 7y ago
  Unless you're stashing Gold or precious metals instead of cash, then you have the benefit of not losing the 2-5% that the feds are printing in money yearly. That's assuming you're in the US.
  - slowhand09 7y ago
    I have a roll of uncirculated bitcoin buried in the yard... :-)
  - spking 7y ago
    I totally get the argument for precious metals as a hedge and "insurance policy" against rampant runaway inflation, but don't you lose a lot more than 2-5% when you pay the premium over spot to buy it? Also, how useful/liquid are gold and silver in a serious economic downturn?
- garblegarble 7y ago
  >Over here in the UK the highest interest you'll get on a savings account at the moment is about 0.5%, and most accounts give much less Just looking at the options available from Monzo right now, you can get a 1.15% rate on a minimum £10 deposit (next day withdrawl). Not the most exciting rate of interest, but certainly not quite as dire as 0.5%!
slowhand09 7y ago
I think people have stashed cash at home for many years. Its called an emergency fund. Major multi-day power outage - ATMs don't work. Credit cards don't work. Cash works. I also stash a couple of 5 gal. gas cans in the garage. And some food in the pantry. I even have spare clothing in the closet.
- JoeAltmaier 7y ago
  Don't forget the solar power, water supply, medical kit. Oh, and guns and ammo, so that you get to keep all that when the need arises.
  - DKnoll 7y ago
    Seems like they're preparing for something more realistic like the 2003 blackout and not a zombie apocalypse.
    - GreenJelloShot 7y ago
      Yes, because guns are only useful against zombies, not looters.
- kjaftaedi 7y ago
  Curious what differentiates 'spare' clothing from 'regular' clothing. You can only wear one outfit at a time, everything else is spare.
  - GreenJelloShot 7y ago
    I would imagine "spare" clothing would be: 1) More durable than normal clothing. They would not be something stylish enough to wear every day, but useful in a natural disaster. Think heavy duty work clothes. 2) Kept in some sort of safe, sealed container. In case of a flood or fire, your regular clothes could easily get spoiled. Spare clothing would be kept someplace safe and could be retrieved when necessary. 3) Provide extra warmth, in case your house was destroyed or damaged. Depending on the local weather, it might include a heavy coat, gloves, boots, etc.
anthonypasq 7y ago
real title. 1 in 5 Americans are dumb as a brick
- mr_overalls 7y ago
  This was extremely common in people old enough to remember the Great Depression, when the banks failed. My grandmother kept a roll of cash in her freezer until her dying day. When I was a kid, I asked her why, and she replied that she never wanted to be as hungry as a she remembered being as a child. She washed and reused her aluminum foil, too.
- avgDev 7y ago
  What are you going to do during a catastrophic event, when millions of people are attempting to cash out and bank does not have the money? Plus, it is not a bad idea to have money somewhere off the grid. If you ever become broke, you will have to use up all your savings before you get any aid from hospital and some state agencies.
LinuxBender 7y ago
This happened a lot for people that lived through the great depression. A probate lawyer gave me advise, any time you buy a home from someone that lived through, or their parents lived through the great depression, to check all electrical sockets, attics, basements, nooks and spaces for money and jewelry.
- RandomBacon 7y ago
  Check the pockets of all their clothing before donating it or throwing it out too. That's a common place for them to hide money.
kjaftaedi 7y ago
This is meaningless with only one data point. There's nothing to say that this is a new phenomenon, or whether this number has been the average for decades. This is MSN start page level news and does not belong on HN.
nishantvyas 7y ago
In another CNBC news, “More than one in five (21 percent) don't save any of their annual income.” Source:https://www.google.com/amp/s/www.cnbc.com/amp/2019/03/14/heres-how-many-americans-are-not-saving-any-money-for-emergencies-or-retirement-at-all.html https://www.google.com/amp/s/www.cnbc.com/amp/2019/03/14/her...

17 points by spking 7y ago

Making these kinds of moves can prove costly. If you’re hiding cash in your home, you’re not able to take advantage of compound interest, which helps your money grow exponentially the longer you have it invested. Over here in the UK the highest interest you'll get on a savings account at the moment is about 0.5%, and most accounts give much less. While compound interest is a factor, it's a trivial one. The interest you're getting on money in the bank isn't going to save you in a recession.

not_a_cop75 7y ago
Unless you're stashing Gold or precious metals instead of cash, then you have the benefit of not losing the 2-5% that the feds are printing in money yearly. That's assuming you're in the US.
- slowhand09 7y ago
  I have a roll of uncirculated bitcoin buried in the yard... :-)
- spking 7y ago
  I totally get the argument for precious metals as a hedge and "insurance policy" against rampant runaway inflation, but don't you lose a lot more than 2-5% when you pay the premium over spot to buy it? Also, how useful/liquid are gold and silver in a serious economic downturn?
garblegarble 7y ago
>Over here in the UK the highest interest you'll get on a savings account at the moment is about 0.5%, and most accounts give much less Just looking at the options available from Monzo right now, you can get a 1.15% rate on a minimum £10 deposit (next day withdrawl). Not the most exciting rate of interest, but certainly not quite as dire as 0.5%!

slowhand09 7y ago

I think people have stashed cash at home for many years. Its called an emergency fund. Major multi-day power outage - ATMs don't work. Credit cards don't work. Cash works. I also stash a couple of 5 gal. gas cans in the garage. And some food in the pantry. I even have spare clothing in the closet.

JoeAltmaier 7y ago
Don't forget the solar power, water supply, medical kit. Oh, and guns and ammo, so that you get to keep all that when the need arises.
- DKnoll 7y ago
  Seems like they're preparing for something more realistic like the 2003 blackout and not a zombie apocalypse.
  - GreenJelloShot 7y ago
    Yes, because guns are only useful against zombies, not looters.
kjaftaedi 7y ago
Curious what differentiates 'spare' clothing from 'regular' clothing. You can only wear one outfit at a time, everything else is spare.
- GreenJelloShot 7y ago
  I would imagine "spare" clothing would be: 1) More durable than normal clothing. They would not be something stylish enough to wear every day, but useful in a natural disaster. Think heavy duty work clothes. 2) Kept in some sort of safe, sealed container. In case of a flood or fire, your regular clothes could easily get spoiled. Spare clothing would be kept someplace safe and could be retrieved when necessary. 3) Provide extra warmth, in case your house was destroyed or damaged. Depending on the local weather, it might include a heavy coat, gloves, boots, etc.

anthonypasq 7y ago

real title. 1 in 5 Americans are dumb as a brick

mr_overalls 7y ago
This was extremely common in people old enough to remember the Great Depression, when the banks failed. My grandmother kept a roll of cash in her freezer until her dying day. When I was a kid, I asked her why, and she replied that she never wanted to be as hungry as a she remembered being as a child. She washed and reused her aluminum foil, too.
avgDev 7y ago
What are you going to do during a catastrophic event, when millions of people are attempting to cash out and bank does not have the money? Plus, it is not a bad idea to have money somewhere off the grid. If you ever become broke, you will have to use up all your savings before you get any aid from hospital and some state agencies.

LinuxBender 7y ago

This happened a lot for people that lived through the great depression. A probate lawyer gave me advise, any time you buy a home from someone that lived through, or their parents lived through the great depression, to check all electrical sockets, attics, basements, nooks and spaces for money and jewelry.

RandomBacon 7y ago
Check the pockets of all their clothing before donating it or throwing it out too. That's a common place for them to hide money.

kjaftaedi 7y ago

This is meaningless with only one data point. There's nothing to say that this is a new phenomenon, or whether this number has been the average for decades. This is MSN start page level news and does not belong on HN.

nishantvyas 7y ago

In another CNBC news, “More than one in five (21 percent) don't save any of their annual income.” Source:https://www.google.com/amp/s/www.cnbc.com/amp/2019/03/14/heres-how-many-americans-are-not-saving-any-money-for-emergencies-or-retirement-at-all.html https://www.google.com/amp/s/www.cnbc.com/amp/2019/03/14/her...