Do Millennials carry cash?
In fact, most transactions are now cashless, and many people don't even carry cash on them — something that would have been unheard of 20 years ago. With Venmo, Cash App, Zelle and many more payment services out there, PayPal has become a favorite among millennials.
One of the main reasons that Millennials are making the switch to a cashless society is because of security concerns. Millennials are also the most mobile (moving around and travel, not the mobile phone). Although the Millennial has the highest mobile phone usage, too.
Key findings: A robust 88% of millennials reported using cash to buy something in the last month. During the last month, respondents used a debit card to make a purchase 14% more often than they used their credit cards. In fact, 68% of Americans report using a debit card more often than a credit card.
While you don't want to keep all your savings stashed at home, having some available cash is a good idea. In the event of an emergency, such as a natural disaster, you may not be able to get to an ATM, banking systems could be down, or you might not be able to use apps like Venmo or Zelle.
Today, 19% of Americans no longer carry any cash, an increase of 3 percentage points since 2020. While cash maintains a role in daily life, debit and credit cards are increasingly popular alternatives.
Generation Z
Gen Zers (born 1997-2012) represent the most significant generation in the United States with over 86 million. A substantial portion of consumers born in this generation prefer to use cash in person – 37% – according to Logica Research.
The big takeaway: Banks are pushing for a cashless society, mostly because they would benefit from having full control over consumers' financial lives. But a cashless society won't happen overnight—if ever.
Younger adults overspend because of friends
This is resulting in debt and sometimes ending friendships to protect finances. The study showed 88% of millennials and 80% of Gen Z who have these overspending friends have taken on debt as a consequence of spending time with that friend.
Cash doesn't have fees
As mentioned, customers paying by card spend significantly more than cash customers. Adding card payments will increase revenue which will more than offset the costs of any fees. As more businesses realise this, cash usage will decrease even further.
70 percent of Gen Zers using cash stuffing say they've been able to lower their monthly spend. In addition to more effective budget management, cash is also helping people to save. The survey shows 89 percent of Gen Z cash stuffers say they have been able to channel more money into savings.
Should you carry cash in 2023?
But using cash also means losing out on chances to build credit, which is necessary any time you want to borrow money (for a home, a car, etc.). By going cashless and relying on credit cards in 2023, you can build your credit so you eventually can qualify to borrow money for large purchases.
As people move toward more electronic or digital forms of payment, it might seem like paper money is on its way toward obsolescence. But experts say that cash will always be around.
“Another reason to avoid carrying cash is that it can be dangerous,” Kelly said. “If you're carrying a lot of cash and you get mugged, you could lose all your money.” It doesn't even have to be as dramatic as pickpocketing or purse-snatching.
The concept of a cashless society has been around for decades. But with 80% of payments in the US being made digitally in 2022, and four in ten of us ditching change altogether, research suggests that the transition from physical currency could take place sooner than we once thought.
A cashless society would rely on a complex network of digital systems, which would be vulnerable to cyberattacks. If these systems were hacked, it could have a devastating impact on the economy. Privacy is the third challenge raised. Cash can be exchanged anonymously, leaving no digital trail.
It might be said that the US is headed toward a cashless society. Some small businesses have even put up signs saying that they no longer accept cash, another factor that's driving this change. Cash payments can take longer, limit potential sales, and open up businesses to the possibility of an audit.
Each generation handles money in a different way. Afterall, people have grown up in different eras, they place value on different commodities, and some are busy saving for retirement while some are squirreling away their pennies in order to see the world one day.
Millennials spend more on convenience, online shopping, eating out, experiences and travel, streaming services, debt, and social impact by donating and buying from socially responsible brands. On the flip side, Millennials spend less on cars, clothes, housing, and retirement than previous generations.
Who has the most in assets? Baby boomers also have the most assets per household, followed by the silent generation, Generation X, and millennials. As for asset components, baby boomers have the most in retirement savings, as many people of the generation have not yet retired or been retired for very long.
There's a hidden cost to going cashless.
However, as this new cashless society emerges, people experiencing homelessness are at risk of being left behind. Simply put, there is a reliance on cash for people experiencing homelessness. Take that away and the homelessness problem might get even bigger.
How much longer will cash be around?
We have been issuing banknotes for over 300 years and make sure the banknotes we all use are of high quality. While the future demand for cash is uncertain, it is unlikely that cash will die out any time soon.
Cashless payment policies discriminate against communities of color and low-income customers disproportionately. As has been cited, the FDIC showed that 7.1 million Americans are unbanked or live in households where no one has a bank account.
A staggering 73% of U.S. millennials were scraping by paycheck-to-paycheck in the spring, according to data from finance and commerce research hub PYMNTS.com. Survey respondents in that age group cited debt payments and supporting dependent family members as the main drivers behind living that way.
Millennials were the first generation to feel the impact of access. Access caused Millennials to have different perspectives, expectations, and behaviors. Access changed how Millennials job search, learn, socialize, travel, communicate, build businesses, network, entertain themselves, sell, buy, and work.
The average net worth of millennials has surged from $62,758 to $127,793 since the start of the pandemic. Much of this growth is from real estate; as of 2022, more than half of millennials had become homeowners. The average millennial makes between $52,156 and $62,244 per year.
