Feb 21, 2024 at 9:43 AM Update: 2 hours ago
Young people from Generation Z pay with cash more often than adults. Although young people grew up making contactless payments with cards and telephones, they make a quarter of their payments with notes and coins.
On average, Dutch people make 20.5 percent of their payments with cash, according to research by De Nederlandsche Bank (DNB). This is more for teenagers: 25.1 percent of all payments.
Another group that pays a lot in cash are elderly people around retirement age who no longer work. They make more than 28 percent of their payments with letters and coins.
DNB economist Jelmer Reijerink calls it a surprise that young people use cash so often. “You would say that young people who only use their phone only pay with their phone.”
But that is not the case. Reijerink thinks it makes more sense for the elderly. “They grew up with cash and pay with it out of habit.”
According to Reijerink, the fact that young people in Generation Z (born between 1995 and 2010) use cash relatively often is due to their parents and the things they spend their money on. “Some parents give their children cash pocket money. These young people also often live at home, so they don’t have to make many major expenses. It’s easier to pay for a can of soft drink in cash than the weekly groceries.”
Cash helps with budgeting
Groups that pay little cash are middle-income families (14 percent of their purchases) and highly educated, high-income urbanites (10 percent of their purchases).
We are choosing less and less to pay in cash at the cash register. Of the total value of cash register purchases, only 15 percent was paid in cash in 2022. That was still 57 percent in 2013.
According to Reijerink, cash has some advantages, which he sees in his research among city dwellers with a limited budget. “You can budget more easily. Someone who has a maximum of 100 euros to spend per week may find it useful to keep an overview this way.”
2024-02-21 08:43:40
#Teenagers #quarter #payments #cash #Economy
