Perigon Women’s Circle Roundup – How We Think About Cash

Are bank failures changing the way you keep cash on hand?

For some people, the string of bank failures this spring raised new questions about bank stability, savings strategies and general approaches to cash management.

At Perigon’s most recent women’s conversation circle, in June, a group of female clients, advisors and friends discussed our reactions to the recent financial news – as well as our personal approaches to cash management, banking and saving.

Several attendees said that when bank failures dominated the headlines, they felt not only concern for their own cash, but also a lack of information about why the failures were happening. Many of us found comfort in learning about the FDIC and its coverage limits, while others dove deeper into the specific decisions that contributed to the banks’ issues.

Learning more about the details was empowering, some people said.

We talked about how we bank, and identified our own preferences, from accessibility of physical cash to online service options. Many circle participants praised their local credit unions for dependability, good service and community feel, while others sought the convenience and stability of a big bank. Some people shared their experiences with higher-yield savings accounts, discussing the pros and cons of online-only banking institutions.

Another key question emerged around saving habits and emergency cash. Several attendees voiced a preference for having a large cash cushion, especially during times of uncertainty – whether to provide family support, cover big expenses or just be prepared for emergencies.

Lots of participants identified themselves as “squirrels” because of their tendency to accumulate cash in various places:

One woman prefers her safety deposit box, while others build up funds in their checking accounts or keep a cash stash hidden at home. (With many of the attendees based in California, the idea of “earthquake cash” seemed particularly salient.)

Most of us said we were very intentional about where our cash resides, using separate accounts or “buckets” to keep track of goals, while others look to reduce hassle by managing cash less often.

This women’s circle discussion was a great reminder that there’s no right way to think or feel about cash.