Lifestyle Desk: There is a tendency to keep more cash in our hands at various times. Economic conditions, personal habits, and social demands may lead to the formation of these habits. Mentioned below are some of the main factors that can increase the tendency to hold cash:

hate taka

Financial Uncertainty: When economic conditions are unstable, many people feel comfortable keeping cash on hand. Unemployment, inflation, or some kind of natural disaster are more likely to meet urgent cash needs.

Emergencies and Medical: A sudden illness or accident of a family member may require cash. Many people keep cash in hand to take quick action in such situations.

Lack of confidence in the banking system: When there is a risk in the banking system or people feel insecure in the banking sector, they start keeping cash outside the banks. It could be from issues like fear of bank closure or cyber attack.

Preparing for big purchases: Many times people keep cash aside when they plan to buy a house, land, or car, as such transactions usually require cash. Especially where the seller is comfortable with cash transactions.

Festivals and Social Events: There is an increase in the tendency to keep money in hand while organizing various festivals, weddings or social events . Cash is often needed for purchases, giving gifts, or entertaining guests.

Difficulty in online transactions: Many times, when online transactions or digital payments are not available or where technical complications arise, the tendency to carry cash increases.

For Small Traders: Traders often keep cash on hand for daily transactions. Also due to the volatility of the market traders prefer to transact in more cash, especially those running small businesses.

Fraud or Cyber ​​Threats: Due to fraud or cyber threats in online and digital transactions many prefer to carry cash for security. They become dependent on cash due to fear of digital hacking.

For a monthly or weekly budget: Many families keep cash on hand according to a monthly or weekly budget to keep a check on spending. This helps them set spending limits and avoid overspending.

I am the broker of Bangabandhu Sheikh Mujibur Rahman : Shawn

The tendency to keep money on hand increases for various reasons, including economic uncertainty, urgent needs, and personal security. Moreover, factors like social events, big purchases, and technological risks also increase people's habit of keeping cash.