# Handling Cash in YNAB > YNAB is built to work for you, whatever money format you use! When handling cash, you can either add a specific cash account, or treat cash as a category. Source: https://support.ynab.com/en_us/handling-cash-in-ynab-a-guide-BJVYYkXR9 Last updated: 2026-07-09T19:37:14.322Z Manage cash in YNAB by choosing between two options: a cash account or a cash category. Determine your choice based on your cash spending habits and willingness to track every penny. #### In This Article [The Great Cash Dilemma](#cash) [Spending from a Cash Account](#spending) [Treating Cash as a Category](#category) * * * ## The Great Cash Dilemma So how should you handle cash spending now that you have a plan? There are two options, and the one you choose depends on honest answers to two questions: how much cash do you spend, and how willing (or excited!) are you to record every penny of spending, no matter how small? * **Option One: Cash Account.** The more cash you spend and the more willing you are to track it, the more you should set up and [spend from a cash account](#spending).  * **Option Two: Cash as a category.** The less cash you use and the less you are willing to track $1.17 purchases, the more you should [treat cash as a category](#category). Do you fall somewhere in the middle? Pick whichever of the two options feels more simple to you. Or throw a dart. You can always change your mind.  You'll want to choose **only one** of these methods, though! If you choose to use a cash account, that money should be assigned to spending categories just like the rest of your money, and not in a cash category. It's **not** a good idea to try to [match a category balance to an account balance](https://support.ynab.com/en_us/category-balances-versus-account-balances-an-overview-ryvnKB_Ac)—check out that article to find out why!  [Back to Top](#backtotop) * * * ## Spending from a Cash Account This method allows you to track every dollar of your spending. If you spend a lot of cash, especially in relation to your total spending, you should use this method—otherwise, your plan in YNAB won’t reflect significant portions of your spending. The mobile apps make it easy to add transactions as they happen. ### How to Use a Cash Account for Spending 1. [Add an Unlinked account](https://support.ynab.com/en_us/how-to-add-an-account-ByoxswMJs) on web or mobile. 2. When prompted, select _Cash_ as the account type and choose the _Cash_ option, then give it a nickname—such as Wallet, Piggy Bank, or Cash_,_ if you're feeling particularly creative. 😉 3. Enter the amount of cash you have on hand as today’s balance.    4. When you withdraw cash from your checking account, enter it as a [transfer](https://support.ynab.com/en_us/transfer-transactions-a-guide-HJOsZz4Jj). It will be an outflow from the checking account and inflow to the cash account.  5. If you receive cash, you'll [enter an inflow transaction](https://support.ynab.com/en_us/how-to-add-transactions-in-ynab-HyDwA_byi) and categorize it as Income: Ready to Assign (called Inflow: Ready to Assign on Web). You can then assign the funds down through your categories! 6. When you spend with cash, enter the transaction in your cash account immediately on your mobile device. It will automatically be marked as **cleared\***. #### All Clear Since your wallet doesn't have a pending fold, any spending or Scheduled Transactions entered in cash accounts will automatically show as cleared. This is true across all platforms (web app and iOS or Android mobile apps). [Back to Top](#backtotop) * * * ## Treating Cash as a Category This method treats cash withdrawals as immediately spent from your plan. This means you don't have to track cash spending if you have difficulty maintaining that level of detail. Basically, with this method, you'll only assign money in your plan for cash that you **withdraw** from a checking or savings account. Cash you receive, gifts, or gift cards that don't actually touch a checking or savings account doesn't need to be entered at all! Whenever you withdraw cash from one of your other accounts, you have two choices in categorizing that withdrawal. Ask yourself, what is the plan for these dollars? * **Option One:** If you’re going to spend on a specific purpose or item, use that category. For example, if you’d like to withdraw $200 to spend freely on your vacation, go ahead and categorize the withdrawal using your vacation category. * **Option Two:** If you’re going to spend this cash on a number of small things, you should set up a category for that type of spending. Fun money, spending money—whatever describes the plan you have for those dollars. [Back to Top](#backtotop) * * * ## Help Us Help You! Our Knowledge Base team reviews article feedback responses weekly, and we actively revise these articles to make them as helpful as possible. That's where you come in! Our articles are scored based on the _Yes_ or _No_ ratings received below. We also collect freeform feedback for any _No_ ratings (so our team can focus in on what you were specifically searching for!). **Success**: Found what you were searching for? It would be super helpful if you click _Yes_ below. **Suggestions**: Didn't find what you're searching for and you'd like to share what terms or topics you wanted? Click _No_ below. You'll then be able to submit your feedback about this article. **Please note:** the feedback submissions are anonymous, and we’re not able to respond, so make sure to use the next option if you have a specific scenario or question you would like a response to. **Support**: If you have a question or would like a response to your specific question, [tell the chatbot you need a human or send us an email](https://support.ynab.com/en_us/how-to-get-help-SygqcvtC5) to ensure that your message gets to our Support team!