Archive · 16 Nov 2025
Gen Z Finds Cash Cringey, But Paper Money Remains Resilient
Imagine money like toys.
Some kids, especially younger ones called Gen Z, think using real coins and paper money is old-fashioned and slow, like playing with a dial-up phone.
They prefer using their phones or cards to pay for things instantly.
Many people now pay with their phones or cards for almost everything because it's quicker.
Even though many adults still use cash because it feels safer in case the internet goes down, or they want to be sure they don't spend too much.
It's like having a backup toy.
While fewer people are using cash for everyday things, it’s not going to disappear completely because some people really like having that backup option.
Banks also charge small fees when people use cards, which can sometimes make things more expensive for shoppers.
A significant portion of Generation Z finds using physical cash to be outdated and 'cringe'.
The preference for cash in person has declined sharply, with only 17% of Americans favoring it in 2024, down from 27% in 2016.
Older and lower-income Americans are more likely to use cash, but its usage is decreasing even within these groups.
While electronic payments offer speed and convenience, cash provides a sense of security against potential economic or power grid failures.
Despite the societal shift, cash remains resilient, with a large majority of Americans still carrying it daily and having no plans to abandon it entirely.
- Who
- Generation Z consumers, older and lower-income Americans, Federal Reserve, US Congress
- What
- A declining preference for physical cash, especially among Gen Z, contrasted with its continued, albeit reduced, use by other demographics for security and necessity.
- When
- Surveys conducted in September (Gen Z) and 2016/2024 (Federal Reserve); trends observed over the past decade.
- Where
- Primarily the US, with mentions of Italian restaurants in New York City as exceptions to electronic payment adoption.
- Why
- Faster electronic payments are becoming the norm; cash is perceived as 'cringe' by some younger generations, while others continue to use it out of necessity, habit, or for a sense of security against economic or system failures.
Arguments for Moving Away from Cash
Arguments for Maintaining Cash Usage
Consumer Behavior and Perceptions
Arguments for Moving Away from Cash
Gen Z finds cash users 'cringe' and prefers faster electronic payments, reflecting a societal shift towards digital transactions.
Arguments for Maintaining Cash Usage
Despite the shift, four out of five Americans still carry cash, and nine out of ten have no plans to stop using it, indicating a deep-seated preference or need.
Transaction Efficiency and Costs
Arguments for Moving Away from Cash
Electronic payments are faster and more convenient for small purchases. Credit card swipe fees are a cost for merchants, sometimes passed to consumers.
Arguments for Maintaining Cash Usage
Cash involves 'shoe-leather costs' (time and effort to get it) and carries a greater risk of theft, whereas electronic payments offer easier spending tracking and potentially more accurate inflation data.
Economic Implications
Arguments for Moving Away from Cash
The presumption is that cash usage leads to more mindful spending due to its tangible nature and physical limits.
Arguments for Maintaining Cash Usage
Evidence on cash impacting spending is mixed; new technologies like stablecoins and central bank digital currencies may disrupt credit cards, but current usage shows cash remains a fallback for security in case of system failures.
- Gen Z Cash Usage
- 53% use physical cash only as a last resort; 29% find cash users 'cringe'.
- Preference for Cash (Federal Reserve Survey)
- 17% preferred cash for in-person transactions in 2024, down from 27% in 2016.
- Cash Usage by Income
- About 25% of transactions by those earning under $25,000 involve cash.
- Cash Usage by Age
- 19% of transactions made by people over 55 years involve cash.
- Credit Card Fees
- Typically 2.5% to 3.5% charged to merchants.
- Current Cash Holdings
- Four out of five Americans have some cash on them daily.