In an increasingly digital world, keeping notes in the drawer may seem like the past. But the main European central banks are recommending just that: each family should keep a small cash reserve, enough to survive a few days in the event of crisis
Table of Contents
- In an increasingly digital world, keeping notes in the drawer may seem like the past. But the main European central banks are recommending just that: each family should keep a small cash reserve, enough to survive a few days in the event of crisis
- A “alternate tire” of the payment system
- How much money should I have at home?
- Psychological and Practice Security
The alert comes at a time when most of them choose digital payments looking for notes, whenever stability is called into question, either by a pandemic, a blackout or a war.
A study by the European Central Bank (ECB), entitled “Keep Calm and Carry Cash”, analyzed four major recent crises-Covid-19 pandemic, the Russian invasion of Ukraine in 2022, the Greek debt crisis and the Iberian blackout in April 2025-and concluded that the money continues to be irreplaceable in emergency times.
A “alternate tire” of the payment system
Although less and less used in everyday transactions, cash remains as a kind of collective insurance. “It works as a ‘alternate tire’ of the payment system,” explain the authors of the ECB study. In extreme stress situations, families tend to see a resilient means of payment and a safe haven for their immediate savings.
This is what happened in March 2020, when the confinements caused a race to cash throughout Europe: only in the first 90 days of the pandemic there was another 19.5 billion euros in notes than would be expected, according to the document. Also in February 2022, with the Russian invasion of Ukraine, there was an abnormal demand in neighboring conflict countries, such as the Balticos and Finland, where cash issuance reached levels six to ten times above normal.
More recently, in April, the Iberian blackout left over 50 million people in Spain and Portugal without electricity, communications and digital payments. Cards, instant transfer applications and even ATM boxes were inoperative. Many traders only accepted notes. Who did not have, was limited in access to essential goods.
How much money should I have at home?
It is not about filling coffers or having packages at home. Official recommendations point to small, but sufficient amounts to ensure autonomy in emergency situations. In Austria, the Netherlands and Finland there are even official guidelines: between 70 and 100 euros per person, enough for 72 hours of essential expenses. Sweden, on the other hand, recommends storing the equivalent of one week of essential food, medicine and fuel spending.
Psychological and Practice Security
According to the ECB, there is also an emotional side. Having notes at home conveys a sense of immediate control and security, especially in times of prolonged uncertainty. It is a behavior that economists call “aversion to loss”: when the future looks uncertain, people prefer to ensure hand liquidity. In addition, cash is tangible, it does not depend on the internet, electricity or bank systems, and preserves the privacy of transactions.
The study of the ECB also considers that physical money is collective insurance. When everyone has some notes at home, a decentralized liquidity network that helps society to stay functional is created even when systems fail.
The study concludes that, as citizens are encouraged to have emergency kits, cash should be seen as an integral part of crisis preparation. “No system is infallible. Physical money ensures redundancy and confidence in critical moments,” says the ECB.
Therefore, saving some money at home, preferably in small notes, easy to use in quick exchanges, can be as important as having a flashlight, a radio or water.
