Is There a Generation Gap in Cash Use? - October 07, 2019
News
News
This article was published more than 3 years ago and the content may be outdated.

Is There a Generation Gap in Cash Use?

Monday, October 07, 2019

View Showroom

by Claire Greene - Federal Reserve Bank of Atlanta

How different are millennials from boomers in their reported payment habits, especially regarding their use of cash? New data from the Survey of Consumer Payment Choice, out this month, lets us look at age segments using the interactive charts accompanying the report.

For example, in 2018, consumers overall made 17 payments a month in cash. Drilling down, consumers aged 25 to 34—that is, millennials—used cash for 15 payments per month. Consumers 55 to 64—the boomers—used cash for 18 payments a month.

It's good to put these numbers in context. Here's a fact that surprised me: the younger group makes more total payments per month (73) than does the older group (67). That means that, as a percentage share of all payments, the difference by age is more pronounced:

  • Millennials: 21 percent of their payments in cash
  • Boomers: 27 percent of their payments in cash

The differences are similar when we look at paper checks, which the younger group used for 2 payments per month (3 percent of their payments) and the older group for 4 payments per month (6 percent).

Payment-method-use-by-age-range

You'll notice in the chart that payments instrument usage has been relatively stable for all the age groups since 2015.

Millennials' relatively lower use of cash doesn't mean, however, that the cashless society is going to arrive any time soon. In 2018, 85 of 100 consumers used cash in a typical month. And, in an analysis that incorporates a complete set of demographic variables plus income, differences by age could prove not so relevant. So, is there a generation gap in cash use? Yes. Does it mean the end of cash? No.

The charts at the website let you look at consumer payment choice by household income group and by the type of transaction. For example, you can examine how consumers' use of payment instruments is different for P2P payments than for bill payments. Check them out.

View the originial article from the Federal Reserve Bank of Atlanta here.


Additional Resources from ATM Industry Association

ATM Industry Association White Papers
ATM Industry Association Press Releases / Blog Posts

Global Sponsor - PAI
Global Sponsor - Auriga
Global Sponsor - DPL
Global Sponsor - Prosegur
Global Sponsor - KAL
Global Sponsor - Euronet Worldwide
Global Sponsor - Diebold Nixdorf
Global Sponsor - FIS
Become a Global Sponsor
Special Offer Image ATM Security Association Image Special Offer Image
Global Sponsors