I’m a Money Expert: 4 Reasons You Should Stock Up on $100 Bills Before the Winter
Written by
Joel Lim
Edited by
Ashley Barnett
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Digital payments are expected to reach $11 trillion in 2024. That’s a lot of virtual money changing hands.
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But what if something goes wrong? It happens all the time. Banks close, digital payment platforms fail, or you lose your debit card. While an increase in spending during the winter months is predictable, the unexpected events are, of course, unpredictable.
So, one thing is clear — there are many things could happen that prevent you from using your hard-earned money. So, is it a good idea to stock up on $100 bills now? Waiting could mean your money gets tied up, and you miss out on your planned purchase.
Why Hundreds?
The $100 bill is the most common currency in circulation in the United States, yet it is also the most hated. Most people generally withdraw $100 bills when they want to store cash, not spend it. It’s like a guaranteed savings account right there in your hands. (Or under your mattress.)
Sure, it might feel unsafe to have cash on hand when you could keep it in savings, but your savings aren’t always readily available to you. Cash is.
Why not twenties? $20 bills take up way more space than hundreds. And if you’re storing a couple thousand dollars for the winter, twenties will require much more space. It becomes a bulky, unmanageable problem to wade through twenties when you can just grab a crisp $100.
Plus, if you pull out hundreds “just in case” and don’t end up spending them, it’s easier to deposit them back into the bank.
You might catch the occasional eye-roll if you pull out a C-note. Or you may have to wait a bit longer for your cashier to run a counterfeit pen across the bill. But you’ll have peace of mind that you have all the cash you need to get through an unpredictable winter.
As Tim Peters, Chief Marketing Officer at Enghouse Systems, who works with dozens of financial institutions, notes, “Based on historical norms, we know people are cash hoarders with the advent of uncertainty and thus secure lending capabilities. An example is 2008 when the cash circulation rose by 20%.”
Winter is perhaps the most unpredictable time of year, and it gets more chaotic each year with the climate changing wildly, among other things. Here are just a few reasons to stock up on $100 bills before winter arrives.
1. The Banks Could Close
Where we once knew with some certainty what kind of weather we would see in specific regions, those days are gone. Now, snowstorms hit regions not always prepared, leaving millions in freezing temperatures.
These unexpected turns in weather often leave banks with no choice but to close their doors. So, while you thought you’d head into the bank for cash on a Tuesday, you now cannot make a large withdrawal.
As Tim says, “Some internal and external factors contribute to a disruption of banking services in winter, among them snow.”
It’s better to get your cash in hand now before the unexpected happens and you can’t.
2. Digital Payments Could Be Down
Well, you figure you’ll use your credit or debit card then, right? Wrong. Tim notes that “A report of the US Treasury has established that during stormy weather in 2022, 5% of the USA stood without the capacity to conduct any digital payment operations.”
You don’t want to be the person among that 5%, standing there trying to make a purchase or pay a bill and unable to. Remember when millions lost power in Houston when the power grid failed during a snowstorm in 2021? $100 bills would have come in handy to purchase things like wood to make fire, gas to fill propane tanks, and more.
3. Vacations Are Unpredictable
Let’s say you’re not in an area prone to stormy weather. You live in Georgia or Mississippi, where snowflakes rarely fall and hurricanes are rare. There are other reasons to keep hundreds on hand, like vacation.
Maybe you’re escaping the storms, and you travel to a nice island somewhere, or sunny Southern California. It’s always good to have cash on hand for winter travel because you never know who will take your credit card.
Some vendors will only accept cash, and you don’t want to be turned away because you don’t have enough on hand. Cash is still king, and the $100 bill still holds value around the world.
As Tim says, “Since during vacation, even without buying a product, people spend money extensively, it is desirable to have cash so as not to face disappointments in the running around for credit and debit transactions, especially where banking systems are not well built.”
In short, always travel with hundreds.
4. It’s Nice To Have a Buffer
Finally, it’s just nice to have that buffer with you at all times, especially during the winter. Your power bill will rise, your spending will increase, and you may be traveling. Having $100 bills on hand will keep you from having to dip into your savings or rush out to find an open bank.
It’s your winter safety net and one that more and more people need to call on.
As Dutch Mendenhall, Best-Selling Author and CEO of RADD Companies reminds us, “Cash can serve as a buffer against high inflation or economic downturns, allowing us to make purchases or investments without relying on credit or digital transactions.”
Look, no one is saying you should pull all your money out and hide it in a safe or in your mattress. But it’s a good idea to have a few thousand dollars, or more depending on your personal expenses, on hand. Hundreds allow you to hold onto economic power even in the most unpredictable of circumstances.
And the last thing you want when the unexpected happens is to lose your economic power.
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