How Much Cash Should I Have for a Garage Sale?

A garage sale provides an excellent opportunity to declutter your home while earning extra money. While many transactions occur digitally, cash remains the preferred payment method for these informal sales due to its simplicity, speed, and lack of transaction fees. This guide helps you determine the right amount of cash to have on hand and outlines best practices for handling transactions safely.

Determining Your Cash Float

Estimating the necessary cash float involves considering your items’ typical price points and the change you will need to provide. Most garage sale items are priced at low increments, often ranging from $0.25 to $5.00, meaning buyers frequently pay with larger denominations. For instance, small items like books or knick-knacks might be priced between $0.25 and $5, while furniture or small appliances could range from $5 to $50.

A common recommendation for a starting cash float is between $50 and $100. A practical breakdown for this amount often includes a good supply of smaller bills and coins. Consider having approximately 20 one-dollar bills, 5 to 10 five-dollar bills, and a few ten-dollar bills. For coins, two rolls of quarters and one roll of dimes are sufficient. This ensures you can easily make change for customers paying with larger bills.

Managing Cash Safely During the Sale

Handling cash safely involves secure storage and careful transaction practices. A lockable cash box or a money belt worn close to your body are effective ways to keep funds secure and out of sight. Keep the cash box or money belt attended at all times and not easily accessible to customers.

When making a transaction, always count change back to the customer to ensure accuracy. Regularly move larger bills, such as $20s or $50s, to a secure location inside your home to minimize cash at the sale site. For added security, consider using a counterfeit detection pen. Maintaining awareness of your surroundings and having a helper can deter potential distractions or criminal activity.

Considering Alternative Payment Options

While cash is ideal, some buyers may inquire about alternative payment methods. Digital payment apps like Venmo, PayPal, and Zelle are popular for person-to-person transactions. However, these options come with considerations for a garage sale. Venmo and PayPal may charge fees if transactions are marked as “goods and services,” and sales exceeding $600 could be reported to tax authorities.

Zelle is primarily for sending money to trusted friends and family and does not offer buyer or seller protection for goods purchased, making it high-risk for sales to unknown individuals. Accepting checks is not recommended due to the risk of fraud or bounced payments. Credit card processing incurs transaction fees, making it less practical for a small, informal sale. Despite these alternatives, cash remains the most efficient and straightforward payment method for a typical garage sale.