Cash, the preferred formula for young people to manage their finances

While the use of cash as a means of payment gradually decreasing in recent years, the Generation Zthat of those born in late 90s and early 2000sseems to have recovered it as the best tool to control your finances.

According to investigation conducted by the personal finance platform Credit Karma, the 45% of young people from generation Z, the digital natives, prefer cash for everyday purchasesa much higher percentage than in the general population.

In addition, 33% feel they have a better control of your finances if you operate with cash and 25% confirm don’t want to accumulate debt.

The national survey on use of cash published recently by the Bank of Spain, where a 60.3% of the population between the ages of 18 and 24 have cash as their preferred means of payment.

A study of Center for Generational Kinetics explains that the economic crisis resulting from the health pandemic had a direct impact on young people, who also attended the financial difficulties of family and friends.

According to this report, the 34% of consumers between 13 and 25 years old was seen negatively affected your personal savings36% in their earning potential and 39% in their ability to consume. 27% found difficulty saving for your education and 29% for create an emergency fund.

All these issues have generated among the youngest a intense concern to limit the risk, to know the rates and the costs associated with the means of payment and, finally, to have a better control of your personal finances.

In this context, they haverediscovered” cash as a “useful, reliable and efficient” tool to understand and optimize your financial health. In fact, the 64% say they do not have a bank card.


Many have been youth initiatives with money which have gone viral on the network lately.

One of the most shared was the called “savings envelope”. This measure consists of performing a track expenses by distributing a fixed amount of money in several envelopes dedicated to current expenses and Long term goals.

Example of this is Laura Castellanoswhose videos in the account of tiktok @abundantgains are followed by more than 11 million people.

Since the end of the 1970s, various authors, including Elizabeth Hirschman or Richard Feinbergstudied what is called “cashless effect“oh”no monetary effect“, the idea of consumers tend to buy more products and pay higher amounts when paying cashlessbecause there is no physical feeling of getting rid of tangible money.

For many experts, the sentiment associated with paying cash serves as a natural tool to make payments “more visible and aware” and to improve, at the same time, the management of personal finances, in the face of those who defend digital payments and the virtual disappearance of cash.

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