Apparently, it's not cool to use cash anymore. More than 53% of Gen Z say they only use cash as a last resort, and almost one-third describe people who pay with cash as out of touch or even cringe, according to The Harris Poll, conducted in partnership with Cash App.
Why Gen Z Thinks Cash Is Cringe
One of the most surprising findings is that cash makes Gen Z more impulsive, not less. Older generations often used cash envelopes to stay disciplined, but Gen Z says the opposite happens. According to the survey, more than half of Gen Z admit they're more likely to spend without thinking when they have physical cash on hand than when paying with a credit or debit card.
Don't Miss:
- The ‘ChatGPT of Marketing' Just Opened a $0.81/Share Round — 10,000+ Investors Are Already In
- 7 Million Gamers Already Trust Gameflip With Their Digital Assets — Now You Can Own a Stake in the Platform
There's also a social element to this shift. How you pay has become a form of self-expression. Gen Z has grown up in an era defined by mobile banking, instant transfers and digital wallets, so pulling out cash can feel outdated, almost like using a flip phone when everyone has the latest iPhone.
Awareness Gaps Are Slowing Their Financial Progress
But the report also highlights an important gap. Even though Gen Z is extremely comfortable using digital tools and has access to more online resources than ever before, many still lack foundational financial knowledge. Only 44% of Gen Z with savings accounts know their current interest rate, whereas 32% do not. And 16% are unsure if their accounts even earn interest at all.
Trending: Buffett's Secret to Wealth? Private Real Estate—Get Institutional Access Yourself
In the end, calling cash "cringe" is really just Gen Z's way of saying they want money to be trackable and digital. That said, though they've mastered the tech side of personal finance, many are still missing key pieces of financial knowledge that could actually help their money grow.
If you're part of Gen Z and want to get better with money, start by checking whether your savings account actually earns interest. And if it doesn't, consider moving your money to a high-yield account where your balance can grow automatically. You'll also want to set up recurring transfers to your account so you can start building momentum over time.
Read Next:
- Wall Street's $12B Real Estate Manager Is Opening Its Doors to Individual Investors — Without the Crowdfunding Middlemen
- Bill Gates Invests Billions in Green Tech — This Tree-Free Material Could Be the Next Big Breakthrough
Image: Shutterstock
