Millennials are considered the digital generation. So you would think that they would be the fastest adopters of technology like Apple Pay. But it turns out that when millennials shop in physical stores, they like to use cold hard cash.
The“Diary of Consumer Payment Choice,-.” published by the Federal Reserve reports that millennials have a higher propensity to use cash than do Gen Xers or Baby Boomers.
Why Millennials Love Cash
There are five main reasons why millennials love cash:
Millennial Cash Usage
It is interesting to note that 52 percent of cash transactions are for food and personal care items. Millennials are less likely to spend cash at the grocery store than they are at Starbucks.
Millennials are also less likely to have multiple rewards credit cards. Half have only one card whereas 40 percent of seniors have three or more cards. They use the cards they have less too. Fewer than 50 percent of millennials use their cards at least once a week, while 61 percent of Seniors whip out a credit card in that period.
Preferring cash is a global phenomenon for millennials. A Swedish study showed 56 percent of this age group would oppose transitioning to a cashless society.
Millennials who embrace the trend to pay with cash should check out the Withdraw Cash Wednesday initiative. This program encourages people to withdraw cash from ATMs on Wednesdays and do all their weekly spending with cash to control spending.
Cash is king for the millennial generation. It is the universal and egalitarian form of payment that is accepted everywhere.
Take control of your money and improve your life.
Join our Withdraw Cash Wednesday campaign and receive timely reminders and tips to take control of your money by using cash.