Imagine a world where pulling out a wad of bills to buy your morning coffee makes you feel like a dinosaur in a smartphone era—that's the reality for Generation Z, and it's sparking a whole new conversation about money habits.
Ever heard of cash being called 'cringe'? Well, buckle up, because the latest trends show that today's young adults, those tech-savvy 20-somethings in Gen Z, are ditching dollar bills like yesterday's news. A recent Harris Poll, as reported by The New York Post, surveyed over 2,000 U.S. adults aged 18 and up to dive into how people handle savings, investing, and even those 'old-school' payment methods. And the results? They're eye-opening. But here's where it gets controversial—could this shift away from cash be revolutionizing personal finance, or is it just making some folks feel left out in the digital dust?
According to the poll, more than half of Gen Z (that's 53 percent) only resorts to physical cash when all other options have failed. They overwhelmingly prefer whipping out debit cards or tapping away on phone apps instead of fumbling with tangible currency. In fact, nearly a third (29 percent) of these digital natives believe that sticking with cash makes someone seem totally out of touch or, yep, downright 'cringe.' It's not just about looking cool, though—far from it. Gen Zers explain their preference as a smart way to keep spending in check. For beginners wondering how this works, think of it like this: when you're holding cold, hard cash, it's easy to splurge without realizing it, kind of like how a full wallet tempts you to grab that extra treat. But with cards or apps, you can set limits and track every penny, making budgeting feel more like a game you can win.
The experts in the poll noted something fascinating: over half of Gen Z (54 percent) admit they're more prone to impulsive buys when cash is literally in their hands, compared to using credit or debit cards. This isn't born from arrogance; it's about embracing tools that align with their digital-first lifestyles. And this is the part most people miss—Gen Z isn't the reckless 'doom-spenders' stereotypes might suggest. On the contrary, they're building solid financial foundations. A whopping 46 percent are setting aside emergency funds to feel secure, while 39 percent are focused on creating a buffer for life's uncertainties. Instead of blowing money on random junk, 37 percent are saving for memorable adventures, like dream vacations or one-of-a-kind events, and 34 percent are eyeing big-ticket items such as sleek cars, cutting-edge gadgets, or trendy designer accessories. Even more impressively, 36 percent are channeling their savings toward major life steps, like finally moving out on their own.
Owen Jennings, the head of business at Block Inc. (the company behind CashApp), puts it perfectly: '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. By offering them high interest on savings, we’re providing teens a powerful, accessible way to see money grow and encouraging healthy financial habits that will benefit them well into adulthood.' In simpler terms, apps like CashApp are designed to help young people grow their money responsibly, turning digital habits into long-term financial wins.
Now, here's a controversial twist: Is this move away from cash empowering Gen Z to take control of their finances, or is it isolating those who prefer the tactile feel of bills—think of the elderly or folks in cash-only communities? Could it even widen the digital divide?
This piece was originally published on The New York Post and has been republished with permission.
What do you think? Do you agree that cash is 'cringe,' or do you still swear by it? Is this shift a sign of progress, or should we worry about the downsides? Drop your thoughts in the comments—let's discuss!
