Why Gen Z is Choosing Paper Over Plastic

In an article for MSN, Aliss Higham reports a money-management shift in Gen Z behavior toward using cash. The trend is notable, as digital transactions have emerged as the primary means of spending, saving, and investing across other demographics. 

The Pros and Cons of Cash Stuffing for Young Adults 

Higham cites a 2023 study by Harris Poll, showing that 69 percent of Gen-Z are using cash in the U.S. and U.K. more than they did in 2022. Twenty-three percent of respondents indicated using cash for most purchases. 

The emergence of keeping large amounts of cash at home, known as “cash stuffing,” is attributed to a social media trend on platforms that include TikTok. The budgeting hack involves withdrawing substantial amounts of cash from the bank (such as an entire monthly paycheck) and allocating it into envelopes to cover specific expenses. 

Benefits of Cash Stuffing  

Experts are divided on the benefits of cash stuffing. Some express concerns about: 

• The safety of keeping large amounts of cash at home, while others view it as an effective budgeting method.  
• The trend is seen as a response to the ease of digital spending and a desire to physically see and appreciate money.  

 Financial analysts and experts note that using cash can be a tangible way for young people to manage budgets and understand the value of money. They suggest that cash transactions may provide a more immediate and real connection to spending, compared with digital methods. 

Drawbacks of Cash Stuffing

Some critics, however, do have concerns about relying on large amounts of cash. These include: 

• The lack of fraud protection 
• Potential devaluation due to inflation 
• The effect cash-only transactions have on building a healthy credit score for future financial goals like buying a home 

Higham cites a possible cultural and historical influence on the trend. She notes that certain communities have a longstanding distrust of traditional financial institutions, leading to a preference for cash. 

The complete article and its insights into Gen Z’s cash stuffing trend is at MSN.