Cash may still be widely used, but for Generation Z it is rapidly losing appeal. A recent study shows that young adults, raised in a digital-first environment, increasingly see cash as outdated and inconvenient, favoring cards and mobile payment apps instead.
According to the research, conducted among more than 2,000 adults in the United States, 53% of Gen Z respondents say they use cash only as a last resort. Debit cards and smartphone applications are their preferred methods for everyday transactions, reflecting both technological familiarity and shifting attitudes toward money.
Nearly one in three participants said paying with cash feels old-fashioned, reinforcing the idea that physical money no longer fits the lifestyle or image of a generation shaped by digital tools. However, researchers note that this preference is not driven solely by social perception.
Many young consumers say digital payments help them better track their spending. More than half admitted they tend to spend more impulsively when carrying cash compared to using cards or apps, which offer clearer oversight of expenses.
Despite frequent criticism for alleged financial irresponsibility, the findings suggest a more cautious picture. Many Gen Z respondents prioritize building emergency savings and maintaining a sense of financial security, rather than accumulating debt.
Instead of impulsive purchases, a significant number save for experiences such as travel and unique activities, while others set money aside for high-value items or major life milestones. This approach reflects a broader effort to avoid excessive consumption and establish healthier financial habits.
