Discovering YOU Magazine November 2025 Issue | Page 60

MIND YOUR BUSINESS

generation that carries more cash, averaging between $101 and $200. Half use their physical money for tips (48%), while a third use it to get a discount for paying in cash (34%). Other scenarios where Americans are most likely to use cash:

* When paying small local businesses that don't accept cards (46%)

* When splitting costs with friends at a restaurant (30%)

* Paying for parking meters or tolls (24%)

* For emergency expenses (22%)

* At retailers or grocery stores (21%)

* When traveling abroad (18%)

* Paying for gas (16%)

* Paying for a kid's allowance (16%)

Generational shifts: Piggy banks to digital wallets

For many people, cash is tied to their earliest memories about money: 41% say their first financial experiences involved physical cash, not digital payments. Nearly a third understood the value of cash at an early age (32%) and learned to save by setting aside dollar bills before they ever used a bank account (28%).

Yet, today, money etiquette is changing: 35% say younger generations are skipping physical cash entirely and going straight to digital money. Overall, 37% say each generation relies less on cash than the one before it. Close to a quarter predict their own children will grow up with little or no cash experience (22%).

Money moves

When it comes to where Americans keep their liquid savings, half keep it in a checking account. Over a third keep money in a standard savings account (33%), and the same share holds physical cash at home (35%), as many still want instant, tangible access to their funds.

Nearly 3 in 10 have moved money into high-yield savings accounts (29%), while a quarter rely on money market accounts (24%). For some, the strategy is a balance - 20% split evenly between accounts and physical cash - while others lean on more traditional products like certificates of deposit (18%).

When asked how they'd allocate $10,000 today, most Americans balance digital returns with physical reassurance:

* 55% would deposit it in a high-yield savings account

* 47% would pay down debt

* 41% would invest in stocks for long-term growth

* 40% would keep it as cash for easy access

* 29% would use it for real estate or a property purchase

* 27% would buy bonds or Treasury bills

* 22% would spend the money on education or skills development to boost earning potential

* 22% would buy precious metals like gold or silver

Even in a digital-first world, nearly half the population sees value in liquidity, flexibility, and the physical assurance of cash.

Methodology:

Empower's "The Vanishing Wallet" study is based on online survey responses from 1,039 Americans ages 18+ from August 18-19, 2025.