Money Mastery Method with Linda Davies

As the UK hurtles towards an increasingly cashless society, a quiet countertrend is emerging from an unlikely place: Sweden.

Known for its enthusiastic embrace of digital payments, Sweden is now urging caution. The country’s central bank, Riksbank, recommends that every household keep enough cash at home to cover at least a week’s essential expenses. This recommendation, dubbed the “one-week cash stash”, is gaining traction as global uncertainty, cyber threats, and banking outages cast doubt on an entirely digital future.

So why the sudden shift in mindset?

A rebellion against total digital dependence

Sweden has become a hotspot for digital finance, but concern is growing over vulnerabilities that come with it. Former INTERPOL chief Björn Eriksson now leads Kontantupproret, or Cash Rebellion – a movement aimed at preserving access to physical money. His fears are grounded in reality: technical glitches, cyberattacks, and geopolitical unrest could all disrupt digital payment systems.

And it’s not just a Swedish issue.

In the UK, mobile and online banking failures have nearly doubled over the past four years, with 56% more incidents in 2024 than in 2021. Major banks such as Barclays, Lloyds, NatWest, and others collectively experienced over 800 hours of unplanned outages in just two years, according to the Treasury Committee.

Imagine trying to buy food, fuel or medicine, only to discover your banking app is down. Would you be prepared?

Why keeping some cash makes sense

A modest cash stash can be a simple safety net in an increasingly unpredictable world. Most Swedes now keep a small amount of cash, typically in smaller denominations, under the bed or in a drawer “just in case”. The Riksbank also advises using cash regularly so that businesses continue accepting it.

Here in the UK, the closure of physical bank branches and reduced cash services (like those announced recently by Santander) make the need for personal contingency planning even more important.

Things to keep in mind

• Don’t hoard too much – Most home insurance policies only cover up to £500 of cash theft.
• Store it securely – Keep smaller notes and hide them well.
• Remember interest – Money at home doesn’t earn interest, so only set aside what’s necessary.
• Be practical – Include coins or smaller notes for real-world use.

In short, while we enjoy the convenience of digital payments, a bit of old-fashioned thinking could offer peace of mind. A small cash reserve could be the difference between being stuck or self-sufficient in a crisis.

I offer more tips as part of my Healthy Money downloadable courses – tailored for every life stage. Find further details here.