A study conducted by OnePoll and commissioned by Cash Connect found that having cash could help Americans budget better. The poll of 1500 Americans found that 51% of respondents believe paying in cash helps them stick to their budget. Most of the 51% were Gen Z, with 52% preferring cash to other payment methods. About 61% said they had a strict budget. From this number, 65% were baby boomers.
Researchers found that the participants kept about $52 cash with them. Another 75% hold a cash stash for an emergency of about $89.
Purchase Americans make with cash
Americans hid their money in home safes (18%) and wallets or purses (28%). However, others found more creative hiding spots such as their mattresses and inside secret books.
When asked how they spend their cash, about (36%) said they withdrew money for tipping even though they might not pay the rest of their bill in cash. Other things respondents preferred to pay for in cash were gas (27%), coffee (32%), snacks and candy (37%) and fast food (44%).
Despite their preference for cash, Americans preferred to use other payment methods to purchase above $31.
Business owners prefer cash payments for small purchases
Researchers gathered 500 business decision-makers and found that they also felt the same way. About 39% of them have implemented a cash-only policy for purchases lower than $20.
About 71% of the business owners say that it can be inconvenient when a customer uses a hefty bill to pay a small amount of money, especially when a business begins to run low on cash, which happens an average of four times a week.
Even though there had been a rise in digital payment among customers, 82% of business managers admit seeing a number in cash purchases in the last five years.
John Clatworthy, the Director of Client Services at Cash Connect and SVP, states that the assumption that cash is disappearing is not valid. Cash plays a role in how people make payments. He also adds that businesses need a variety of payment methods to stay afloat. They can take advantage of things like smart safes that enable them to manage cash flow.
