The benefits of using a card over cash for your daily expenses

Between long hours at the office and keeping fit, Mr Lucas Tan leads a busy social life. The 28-year-old financial-sector analyst is a foodie at heart and enjoys eating out with his friends and colleagues.

Like many Singaporeans, his weekday schedule revolves around work.

“A typical day starts with me rushing to the office. I don’t have a driving licence so I rely on public transport.

“During lunch, my colleagues and I will go to nearby malls to eat. It could be a quick bite at a food court, sandwiches or salads or sometimes, a restaurant meal,” said Mr Tan.

When the weekend rolls around, that’s when Mr Tan relaxes. Part of his weekend is spent trying to master the art of home-cooked Japanese cuisine.

“On weekends, I’ll drop by the supermarket after the gym to grab some groceries to cook myself dinner. Japanese cuisine is my favourite and sukiyaki is my favourite dish — it’s quite easily prepared but tastes really delicious,” he said.

“Transport, dining and groceries make up the bulk of my weekly expenses. Dining is my single biggest expense. I spend more than S$100 a week on dining.”

ONE CARD, MANY USES

Mr Tan charges most of his expenses to his POSB Everyday Card, which combines the convenience of a credit card, an ATM card and EZ-link functionality.

He uses its credit card and EZ-link functions most often.

Since he often eats out and runs on a busy schedule, a card with rebates and dining offers benefits him immensely.

“I charge most of my food expenses to my credit card whenever possible. I don’t like carrying cash, especially when I receive my change in coins,” he said.

Activating his card’s EZ-Reload function, which automatically tops up his card when its stored value is low, helps him save on something many people in Singapore have too little of — time.

“Since I’ve activated the card’s EZ-Reload functionality, I don’t have to worry about queueing to top up my card so it’s really convenient,” Mr Tan added.

SAVING WITH REBATES

Mr Tan also benefits from the rebates earned when he uses his card. Contactless payments, which require no minimum spend, enable Mr Tan to charge most of his expenses to his card.

Said Mr Tan: “Rebates are good as they don’t expire. You can use them immediately and redeem the entire amount at once.”

Charging most of his payments to a single card also makes it easier for Mr Tan to reduce his expenses, since he earns rebates at various establishments, including local eateries and supermarkets.

Each individual rebate may not be a large amount, but he appreciates the bigger value in this.

“I wouldn’t say that the rebates are substantial but saving is about accumulation. Every bit adds up. After a few months, you can actually buy yourself a good meal.”

By opting to use his card instead of cash as much as possible, Mr Tan also enjoys a spin-off benefit — he is able to track his monthly expenses online.

Said Mr Tan: “I can use Internet banking to monitor my credit card bills and track my expenses before the statement is issued.”

SAVINGS FROM PROMOTIONS

Another advantage that cards offer over cash is the availability of exclusive promotions that can offer members significant savings.

Mr Tan tries to take advantage of such deals to further reduce his expenses. “When there are special promotions, I try to spend at the participating eateries,” he said.

SAFETY ABROAD

Besides being a foodie, Mr Tan is an avid traveller who takes short vacations every quarter. He counts Japan and Hong Kong as two of his favourite destinations.

Using his card overseas offers the added benefit of safety, since he doesn’t have to carry so much cash with him.

He’s also able to save on short-haul trips as his card offers rebates on flights purchased from certain budget airlines. It also offers rebates on overseas spending.

“I enjoy travelling to experience different cultures and most importantly to enjoy the local cuisine. I charge my air tickets to my card for short trips to places like Bangkok, where I travel by budget airlines.”

LESS CASH, GREATER BENEFITS

Mr Tan has benefitted from using his card to pay for most of his daily expenses. It’s helped him reduce his expenses through rebates, save time and allows him to carry less cash. It even helps him earn rebates when he’s overseas. Using his card over cash has allowed him to enjoy greater flexibility while reducing his expenses.

This is the 12th story in a 15-part collaboration between TODAY and POSB. To read this story online, visit www.todayonline.com/posb.