The data: Consumers are relying more on cash to limit their spending as they contend with sustained cost-of-living pressures.
Research from The Harris Poll commissioned by Credit Karma found that:
- In the US, 53% of consumers use cash more now than a year ago. Some of that is driven by budgeting demands: 16% said they have more control when they use cash.
- In the UK, 46% of adults use cash more now than a year ago, and 12% credited physical money with cutting spending.
- The trend is stronger with younger consumers: 69% of US Gen Zers use cash more than a year ago, and 23% say they use it for the majority of purchases. TikTok fads like "cash stuffing," where shoppers put money in envelopes to control spending, could be behind that uptick.
Trendspotting: Cash's appeal as a budgeting tool during downturns and a post-pandemic rebound for in-store shopping are helping reverse a yearslong decline in cash use.