Gen Z Calls It ‘Cringe’: Cash Losing Its Cool Among Young Adults, Says Study
Debit cards and mobile payment applications have emerged as their preferred means of conducting transactions.
- Gen Z views physical cash as outdated, preferring digital payments.
- Over half of Gen Z use cash only when necessary.
- Digital payments help Gen Z better control spending habits.
They are increasingly saying “no” to dollar bills. While cash has historically been a cornerstone of financial transactions, a recent Harris Poll commissioned by Cash App reveals that tech-savvy Gen Z consumers now regard physical currency as “cringe.”
Cash as a Last Resort
The survey, conducted among 2,080 US adults over the age of 18, examined attitudes toward savings, investing, and payment habits. Findings indicate that more than half of Gen Z respondents (53 per cent) use cash only when necessary. Debit cards and mobile payment applications have emerged as their preferred means of conducting transactions.
“Nearly a third (29 per cent) believe that people who pay with cash are either out of touch or cringe,” the report noted, reflecting a generational shift in payment preferences. Once regarded as a valuable and respected asset, cash has now joined the list of items Gen Z considers outdated, comparable to passé fashion choices or overused digital expressions like “LOL.”
Digital Payments and Financial Discipline
The move away from cash is not solely about image. Many Gen Z respondents highlighted that digital payments facilitate better budgeting and spending control. “More than half of Gen Z (54 per cent) admit they are more likely to spend without thinking when they have physical cash on hand, compared with paying via credit or debit card,” the survey found.
Prioritising Savings and Long-Term Goals
The study also challenges stereotypes of Gen Z as impulsive spenders. Many respondents are actively saving and planning for future financial security:
- 46 per cent maintain emergency funds.
- 39 per cent cite saving as a source of financial security.
- 37 per cent are saving for experiences, such as travel or special events.
- 34 per cent allocate funds for high-value items, including vehicles, electronics, or luxury goods.
- 36 per cent are saving for milestone goals, such as moving out of their parents’ home.
Owen Jennings, Head of Business at Block Inc., the parent company of Cash App, summarised the trend: “For Gen Z, it pays to say ‘no’ to overspending dough.”
For Gen Z, cash is no longer central to financial behaviour. Digital payments and deliberate saving strategies dominate, reflecting a generation that values convenience, control, and long-term planning over traditional reliance on physical money.
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