Paper Money Market: Gen Z is Making Cash Cool Again
Cash is still king! Gen Z revives bank notes with the viral “cash stuffing” trend, proving coins and bills aren’t ready for extinction just yet.
Bank note collecting is great, but is it heading for extinction? The answer may be no, as young consumers are finding a new use for bills: cash stuffing. The objective of cash stuffing is to prioritize physical cash, i.e., bank notes, over credit cards for everyday financial transactions.
Cash stuffing has gone viral on TikTok, with videos on the topic garnering millions of views, because it is seen as a way to manage finances during inflationary times. According to Credit Karma, cash stuffing is particularly popular with Gen Z. About 55% of Gen Z members said in a Credit Karma survey that they use it to save money, while 47% use it as a budgeting tool. About 70% were able to decrease their monthly spending. Other sources say some factors driving Gen Z's increased use of cash within the past year include the feeling of having more control and being more thoughtful about spending and future credit card payments.
Credit Karma Consumer Financial Advocate Courtney Alev posted online, “It’s no secret that Gen Z has developed somewhat of a reputation as the nostalgic generation, taking fashion cues from the 90s and Y2K and turning in their smart phones for dumb phones. They would bring back cash too.”
The so-called demise of coins and bank notes, also known as going cashless, is not at hand. Going cashless is sounding more like being politically “woke.” Although that is likely an overstatement to associate the two, Gen Z appears to find value in physical cash. In contrast, Baby Boomers and Generation X seem to have adopted the habit of paying with plastic or electronic payments. Cash still seems to be king.
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