Gen Z feels cash is ‘cringe’ and their last resort, say people who use it are ‘out of touch’: Survey

Gen Z's dislike for cash stems from their need to stick to budgets, which they say is easier when using digital payments (Image: Pexels)

It may be hard to impress Gen Z, especially for those who think ‘cash is king’ and continue to use physical currency, something the tech-savvy 20-somethings call ‘cringe’ and for people who are ‘out of touch’.

According to a new Cash App survey of over 2,000 US adults, 53 percent of respondents, more than half of Gen Z, said that hard cash is their ‘last resort’ when it comes to clearing bills and making payments.

For the research, those over age 18 were approached to gauge their perception of money, including their views, habits, and motivations around saving, investing, and using old-fashioned payment methods.

Also read | Microshifting trend: Is Gen Z rewriting work life rules for good?

According to the report, Gen Z consumers prefer using debit cards or mobile apps over physical cash. Nearly 29 percent of respondents believe that people who still pay with cash are “out of touch” or “cringe.”

While there are many things deemed uncool by Gen Z, physical cash seems to have joined the list. But this dislike for cash stems from their need to stick to budgets, which they say is easier when using digital payments.

“More than half of Gen Z (54 percent) admit they are more likely to spend without thinking when they have physical cash on hand, compared to paying with a credit or debit card,” observed the experts.

Also read | 10 Ways Gen Z Learns Differently from Everyone Else

Even though Gen Z has often been considered “financially irresponsible,” their intent is to save for the future and avoid debt. Most are focused on building financial stability, and according to the survey, 46 percent have emergency funds, while 39 percent say they’re saving to feel more secure.

They don’t make impulsive purchases either. 37 percent are saving for meaningful experiences like travel or special events, while 34 percent are putting money aside for luxury cars, gadgets, or designer products. Moreover, 36 percent are saving for major life goals, such as moving out of their parents’ homes.

The survey clearly highlights the generational divide in the perception of cash, with older generations viewing it as a more tangible asset than Gen Z does.