Apparently lots of people still don’t trust banks and financial institutions nearly three years after the financial crisis, which, to be perfectly honest, leaves me shaking my head.
In an article entitled “Stashing Cash in Tampon Boxes – And Other Sneaky Spots” published on CNNMoney, author Blake Ellis writes about all the weird places people admit to stashing their cash:
Earlier this week, personal finance site Mint.com asked its users to name the most unusual places they’re hiding their cash.
Answers ranged from an iPhone case, the back of a boom box, a box of Animal Crackers to an unused purse. There was also a door frame and a box of waffles.
For sure, America’s cash hoarders have moved beyond the traditional safe haven — their mattresses.
One person is hiding money inside the wood panels of a bed frame, while someone else has cash hidden in rolled up nylons in the back of a drawer.
“We actually mounted a smoke detector on the kitchen ceiling that we removed all the guts from,” said another cash hoarder. “Perfect spot for a cash stash. It was easily accessible from the step stool we kept in there. I don’t think a burglar would be checking the smoke detectors.”
To be perfectly honest, I think the idea of stashing large amounts of money in some obscure place in your house is kind of ridiculous. The last major bank runs occurred during the Great Depression, so, even in this financially unstable environment, there’s about a 99.99% chance your money isn’t going to vanish into thin air should you deposit it at a bank.
Plus, by having the cash on hand, it’s not really doing anything for you. Sure, we are in a low interest environment, but every little bit counts, as Ellis’ article points out:
Of course, hiding cash around your house can be risky, said David Hefty, president of financial planning firm Hefty Wealth Partners. Not only do you risk getting it stolen, but you get no financial benefit — whereas a savings account could at least earn a little interest.
“This is the typical fight or flight mammal response,” Hefty said. “These people are very fearful and have a large distrust with our financial system right now.”
While I think many of these responses are comical, I certainly wouldn’t recommend you take the same tact.
It’s absolutely a good idea to have some cash on hand. That being said, having a hidden treasure chest filled with cash in your home isn’t exactly the brightest idea in the world.