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6 Reasons You Should Stop Hiding Cash at Home

Stashing cash around the house is anything but harmless. Should you stash some cash in a hiding place around your house? It can seem like a fun, creative way to save your money — $100 bills stuffed in the bottom of a cookie jar, $50 bills stuck between the pages of a book, even more money buried in the backyard. But it is actually a dumb and unsafe way to hold on to your money. Here are several reasons why hiding cash around the house is a bad idea. 1. You are missing out on ‘free’ money Putting money in an interest-paying bank account enables it to grow. By keeping your savings in cash at home, you are missing out on interest — free money, basically. Interest rates on savings accounts aren’t great right now, but you can still earn a little extra if you shop around. 2. The money is not FDIC-insured When you deposit money at a bank that is backed by the Federal Deposit Insurance Corp., your money is insured by the FDIC. This independent federal agency insures deposits for at least $250,000. You have none of that protection if your money is stuffed in a mattress. 3. You could lose the money You might not hang on to your hidden money for as long as you’d think. You could lose it to fire or theft, or you could forget where you hid it. 4. Cash might not be covered by insurance Homeowners and renters insurance policies generally offer little protection for cash hidden around the house, says AnnaMarie Mock, a certified financial planner at the Highland Financial Advisors in Wayne, New Jersey. 5. You are losing out to inflation By not putting your cash in a bank account where it can earn interest, you will be harder hit by inflation. In fact, your cash is certain to lose buying power over time. 6. A loved one might end up having to search for hidden money Family and friends will have enough to worry about when you die. Don’t add to their stress by leaving money stashed around your home — forcing them to hunt for it.
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