Discover the Best and Worst Places to Hide Cash at Home

In an age marked by economic uncertainty, the question of where to safely stash your cash is a pertinent one. With a history that includes bank failures and financial crises, many Americans have harbored distrust toward traditional financial institutions. This sentiment is not a recent phenomenon; it dates back nearly a century when thousands of banks collapsed during the Great Depression, leaving depositors with empty pockets.

Even in modern times, trust in banks has been strained following the collapse of prominent institutions such as Silicon Valley Bank, Signature Bank, and First Republic Bank. This distrust has been particularly evident among Gen Z, who, as newcomers to the world of banking, harbor apprehensions about the security of their finances.

In response to this skepticism, many Americans have opted to keep some or all of their money at home. According to a recent survey conducted by American Express Spending and Savings Tracker, a substantial 43% of Americans prefer to store their savings in cash. Another survey, conducted by Life And My Finances, found that a whopping 91.5% of Americans choose to keep cash at home.

Where Do Americans Tuck Away Their Cash?

Not only do Americans choose to keep cash at home, but they also have their favorite hiding spots. The survey conducted by Life And My Finances uncovered some intriguing insights into these preferred cash stash locations:

1. In a Safe (63.3%): The most favored option, a safe is considered the most secure place to hoard cash. It provides protection against theft, fire, and water damage. Experts recommend ensuring that your safe is both fireproof and waterproof.
2. Inside the Refrigerator (13.3%): While the refrigerator may seem creative, it’s not the wisest choice. Fridges are prone to malfunction, and if your money gets wet or damaged, it loses its value. Plus, there’s the risk of someone accidentally discovering your hiding spot.
3. In a Suitcase (6.1%): Suitcases might tempt frequent travelers, but they come with risks. Theft or misplacement is a concern, and they may not offer the same level of protection as a secure safe.
4. In a Closet (5%): Closets are relatively common hiding spots, but they lack the security features of a safe. If you opt for this option, it’s crucial to keep your cash well-concealed and not easily noticeable.
5. In a Water Tank (4%): Storing cash in a water tank may seem inconspicuous, but it presents several risks, including water damage and plumbing issues. It’s not the most secure or accessible place for emergencies.

Expert Opinions on Home Cash Storage

Finance experts weigh in on these hiding spots and provide valuable insights into the ideal cash storage methods.

Eric Mangold, founder of Argosy Wealth Management, shared a peculiar case: one of his clients stores cash and important files in their dishwasher, thanks to its efficient file organization. However, experts unanimously agree that most of these hiding spots are far from ideal.

Joel Efosa, CEO of Fire Cash Buyers, emphasizes the security of safes. He points out that safes provide robust protection against theft, fire, and water damage, making them the most secure option.

Michael Ryan, founder of Michael Ryan Money, raises concerns about storing cash in the refrigerator. He highlights the risk of malfunction, potential damage, and the chance of someone stumbling upon your hidden assets.

When it comes to suitcases, Ryan cautions against using them as cash hiding spots due to theft and misplacement risks. Suitcases may not match the level of security offered by a safe.

Similarly, he advises caution when choosing a closet as a cash stash location. While it’s a common choice, it lacks the security features of a safe.

Storing cash in a water tank may seem low-profile, but Ryan underscores the risks associated with water damage and accessibility during emergencies.

How Much Cash Should You Keep at Home?

Experts overwhelmingly advise against keeping large sums of cash at home. Gary Hemming, an owner at ABC Finance, emphasizes that substantial cash holdings at home are insecure and prone to theft or damage. Banks and financial institutions offer a safer alternative with insurance and security.

Samantha Hawrylack, co-founder of How To FIRE, recommends keeping only a limited amount of cash at home, roughly equivalent to a few days’ or a week’s worth of expenses. Beyond this, the risk of theft or damage increases, while keeping money in a bank allows it to accrue interest.

The Safety of Your Cash and You

In conclusion, the choice of where to store your cash at home is not to be taken lightly. While some unconventional spots may seem intriguing, experts consistently recommend using a secure safe as the best option. Safes offer protection against theft, fire, and water damage, ensuring the safety of your money.

Moreover, it’s advisable to limit the amount of cash kept at home to a minimum. Large cash holdings pose significant security risks and are not insured against theft or damage. By placing your trust in reputable banks and financial institutions, you not only safeguard your cash but also potentially enhance your financial well-being.

Remember, the safety of your cash also contributes to your personal safety, as tragic incidents have shown that the risk associated with keeping large sums of cash at home can have dire consequences. Choose wisely and prioritize both the security of your money and your own well-being.