In an age dominated by digital wallets, contactless payments, and mobile banking, it might come as a surprise that more and more young people, particularly Gen Z, are managing their monthly expenses using cash. But it’s happening, and the implications for retailers and payment solution providers are worth taking seriously. 

The “Cash Stuffing” Comeback 

Binders with “cash pockets” and budged planning sheets are sold online or can be simply made by using envelopes.  

A 2023 Credit Karma study found that:

• 69% of Gen Z reported using more cash than the year before.
• Nearly 1 in 4 said they use cash for most of their purchases.
• About 30% use the cash stuffing technique regularly.

Similarly, Moneywise reported that Gen Zers are turning to cash to cope with rising living costs, and many feel this method gives them more control over their budgets.

Here is a short video which explains the “cash stuffing” method:

Why Cash? Control, Simplicity, and Tangibility

For many young people, cash offers a level of psychological clarity that digital spending often lacks. Physically handing over money reinforces the impact of each transaction. There’s no accidental tap, no vague monthly total, just a direct connection between budgeting and behaviour.

This aligns with Gen Z’s broader focus on financial mindfulness and conscious consumption. As the generation coming of age during inflation spikes, economic instability, and social uncertainty, they are redefining how and why they spend money.

And as The Guardian put it, even in a digital-first world, “a handful of cash can still feel like real power.”

What This Means For Retailers

As younger customers turn to cash as a budgeting tool, brick-and-mortar retailers must be ready to meet them where they are. That means embracing both modern payment solutions and maintaining a robust infrastructure for handling physical money.

1. Be cash-ready. Retailers who assume all young consumers want to pay by phone risk frustrating a growing group of cash users. Smooth, secure, and fast cash handling remains critical.
2. Use durable, high-performance cash drawers. Flimsy or faulty cash drawers cause delays, errors, and frustration at checkout. apg® offers a range of reliable, secure cash drawers that integrate seamlessly into any POS system.
3. Automate cash management. Young people are budgeting smarter, retailers should do the same. The smarttill® solution by apg® automates float management, tracks discrepancies, and reduces shrink, saving both time and money for operators.

Cash Is Evolving, Not Disappearing

While a cashless future is often discussed, these trends show that cash is far from obsolete, especially for younger consumers seeking control and financial discipline. The key for retailers is to stay flexible and support all payment preferences.

At apg®, we provide retail technology that’s ready for the real world where digital and physical payments coexist. From industry-leading cash drawers to intelligent cash management with smarttill®, we help businesses stay agile, secure, and efficient.