Half of Americans now say they use cash more than they did a year ago, according to a survey by Credit Karma. The shift is driven by inflation and the rising cost of living, which have made people more cautious with their spending. The survey of 3,171 US adults found that 53% are using cash more frequently, with three in five saying physical money helps them spend less.
The trend has been fueled by a viral 'cash-stuffing' method on TikTok, where users allocate cash into labelled envelopes for different expenses. This budgeting technique has gained popularity among Generation Z, who are embracing physical currency as a way to save. One TikTok user, KenKashBudgetz, has amassed over 234,000 followers by documenting her weekly cash-stuffing routine.
The move towards cash marks a reversal from previous years, when digital payments like contactless cards and apps such as Venmo were on the rise. The pandemic also accelerated the decline of cash, with many retailers refusing to accept it. However, the number of ATMs in the US fell from 470,000 in 2019 to 451,500 by the end of 2022, reflecting the earlier trend.
Courtney Alev, an associate director at Credit Karma, said: 'As the world is getting back to normal after the pandemic and prices are going up significantly, we see cash as being one of the most enduring ways of managing money.' More than two-thirds of respondents said convenient payment methods had led them to overspend.
The trend is also evident in the UK, where 46% of survey respondents said they were using cash more. Natalie Ceeney, chair of Cash Access UK, noted that much of the theory on payments has focused on removing friction. Meanwhile, budgeting expert Jasmine Taylor, 31, paid off $70,000 in debt using the cash-stuffing method over two years.
