Is cash really becoming a relic of the past? It might seem that way, at least if you ask Generation Z! This tech-savvy group is ditching dollar bills, viewing physical money as, well, cringe.
According to a recent Harris Poll, a whopping 53% of Gen Zers are using cash only as a last resort. The New York Post reports on this shift, highlighting a survey of 2,080 US adults (aged 18+), exploring their payment preferences and attitudes towards saving and investing.
So, what's driving this change?
Well, 29% of Gen Z respondents think people who use cash are either out of touch or, yes, cringe. But it's not just about appearances. Digital natives often find that paying with apps or cards helps them stick to their budgets. In fact, 54% admit they're more likely to overspend when they have physical cash.
And this is the part most people miss... Gen Z is surprisingly focused on financial security. They're not just about instant gratification. The survey reveals that 46% are building up emergency funds, and 39% are doing so to feel more financially secure.
But here's where it gets controversial... What are they saving for?
- 37% are saving for experiences like travel.
- 34% are putting money towards big-ticket items like cars and electronics.
- And a significant 36% are saving for major life milestones, such as moving out.
Owen Jennings, head of business at Block Inc. (CashApp's parent company), sums it up nicely: "As teens’ financial independence grows in today’s economy, we strive to be the digital banking solution that not only fits within their current lifestyle but evolves alongside their financial goals." He adds that by offering high-interest savings, they're encouraging healthy financial habits for the future.
What do you think? Are you a Gen Zer who's ditched cash, or do you still prefer the feel of a bill in your hand? Share your thoughts in the comments!
This article originally appeared on the New York Post and has been republished with permission.
