For years and years, people have stashed money just about everywhere. Every now and then, you hear about someone who picked up an item at a garage sale and found cash inside, or even people who found buried treasure from centuries ago. Each family and generation has had a different way to stash money, Editions TV with Terry Bradshaw has looked at the variety of ways that people have done it over time, from keeping the money at home in a safe place, to stashing it overseas to avoid the prying eyes of the IRS.
Keeping it at Home
Believe it or not, but almost 40% of Americans still keep money hidden in their homes. There are a lot of reasons why (usually convenience), but there still is a prevalent distrust of banks and government, especially after the financial crisis of 2007. The Editions TV Show looks at why people still keep money at home for a variety of reasons, like the people who are unable to get a bank account, especially in border towns across the United States. Other people are unable to get a simple checking account because they have poor credit or a history of bouncing checks.
At home, many people still keep money under their mattresses, hidden in the closet, or even in the cookie jar. There are entire websites devoted to ways to hide money in various household objects. Many people also use safes to store money in their home.
In the Bank with Editions TV
One of the most common ways that people stash money is in the bank. Even though many Americans do hide money at home, many also have bank accounts. An easy way to stash money at the bank is to put it in a checking or savings account. With a checking account, you can easily access the money any time. With a savings account, you can earn interest on your money, so it can grow over time even though it is stashed away from you.
The great thing about saving money in a bank is that banks are FDIC insured. Even though some people do distrust the government, nobody has ever lost FDIC insured funds since the Federal Deposit Insurance Corporation was setup during the Great Depression. The whole premise of the FDIC is to give consumers confidence that their money will be safe, since the Great Depression saw many banks close and people lose their life savings.
Invested in the Stock Market
Many people keep their cash invested in what is called Money Market funds. These funds are very similar to a bank savings account, except that they are not FDIC insured and they are offered by investment companies. The funds trade on the stock market just like stocks or mutual funds, except their primary assets are bonds and they attempt to keep the fund worth exactly $1. That is how they work like a savings account. However, these funds typically pay higher interest rates than bank savings accounts, and that is why investors sometimes prefer them. Plus, if the investor is over the FDIC limit for insurance, some companies will take out private insurance on their money market funds just to make sure that they don’t lose value.
The Editions Television series has looked at places to stash cash, like money market funds, and you may find it interesting to see how they work and why investors choose them.
Finally, very wealthy investors have opted to stash their cash overseas for years. In fact, many big companies, like Apple and Google, still do the same thing, mainly because they don’t want to pay taxes on the money. When investors bring their cash from overseas into the United States, they are no subject to US Tax laws. That is why many rich individuals tend to stash their cash in tax friendly places like the Caribbean and Switzerland. Many of these places are known for their banking secrecy, as well as their ability to cater to US clients who wish to avoid US tax law.