My mother stashed money into coffee cans. For her, it “felt safe”. It was immediately available. I’ve often wondered about when she died, was there money hidden someplace in the kitchen that we never found?
Keeping money in a coffee can is a lousy investment. It can not grow in value. In fact, cash probably drops in value over time because inflation is ever present. My mother didn’t care.
People like my Mom who were raised during the Depression Years (1930’s) respected cash. Cash was king. During the Depression, the Federal Government did not guarantee bank deposits so if you put your cash in the local friendly bank to be safe, you might lose it. Banks were known to close! Forever!
Fast forward to the present. Your Mom and I are unemployed. That means no “new” money is coming in. We would like to put any cash in our coffee can in the bank and earn interest. .001% interest! Are you kidding? Why bother with the bank? Since 2008 retirees have had to use their meager savings to survive. Many have had to go back to work.
Which brings me to risk. The only way to grow the “cash stash” is to invest in things that will be worth more in the future. Stock in manufacturing companies, high tech companies, Real Estate, derivatives, puts, calls! With the risk comes the chance to lose your “cash stash”. It turns out, if you don’t like risk, we are right back where we started. What do you do with “cash”?
So maybe my Mom’s coffee can wasn’t such a bad idea after all. She couldn’t lose it to a financial adviser. She didn’t have to pay management fees. There were no transaction fees. There were no ATM charges. She had complete control. She answered to no one. it made her happy.
Bring back the “can”. Folgers anyone?
Love,
Dad