In 2025, a Cash App survey of 2,000 U.S. adults highlights a generational divide on cash use. Gen Z finds it “out of touch,” while older Americans see benefits in carrying cash. The perception gap may stem from how different age groups learned about money management.

Data reveals that Gen Z and millennials are more likely to spend without thinking when using cash, contrasting with Gen X and baby boomers. The survey also shows a stark split in how different generations perceive spending habits.

Despite the decline in cash usage, it remains relevant in the U.S. economy. Physical bills offer advantages like safety, privacy, and tangible spending limits for budgeting. But both cash and cards have distinct vulnerabilities that users should be aware of.

Credit card users in the U.S. carry a significant portion of household debt, with total credit card debt reaching $1.32 trillion in 2025. Income plays a role, as lower earners are more likely to carry credit card balances compared to higher earners. Average credit card debt per consumer was over $6,700 in 2024.

While cash doesn’t offer fraud protection or interest earnings, high-yield savings accounts can provide growth opportunities. Cards, on the other hand, come with fraud risks and high interest rates. Understanding the pros and cons of each payment method is key to effective money management.

Behavioral patterns suggest that those who pay credit card balances in full are more likely to save consistently. Americans have shifted towards “revenge saving” post-pandemic, with increased personal savings rates. Cash and cards are tools, and their effectiveness depends on how they are utilized for financial goals.

Read more at Yahoo Finance: Boomers and Gen X think using cash still pays off, but Gen Z calls this old-school money habit ‘cringe’