Need to know
While older generations remember when cash was king, a younger generation is discovering the benefits and downsides of physical money for better budgeting
Young Brits turn to notes and coins to beat cost of living crisis
- Young Brits are rediscovering the benefits of cash as the cost of living crisis forces them to budget more carefully.
- “The younger generation is learning what we all oldies were doing for decades,” says Simon Phillips, managing director of No1 Currency. “People are putting cash first to enable them to budget better, have more intention and be more mindful with their spending.”
- The ‘cash-only’ trend sees people taking out weekend spending money and relying solely on physical notes and coins until Monday. Rising fuel costs and general price increases are driving this shift towards more conscious spending habits.
- Cash offers several advantages including protection when banking systems fail, as the European Central Bank encourages people to keep money at home as backup. It also helps with daily budgeting by preventing impulsive card payments that quickly add up.
- “I do feel worried for people who can’t keep track [of their card payments],” Phillips warns. Physical cash provides better spending control than digital payment apps.
- However, access remains problematic as many retailers have gone cash-free post-Covid, while finding cash machines can be difficult and expensive. Privacy benefits exist but aren’t practical for most online purchases.
- Experts advise against keeping life savings in cash due to inflation, but recommend maintaining a small cash buffer for emergencies and always carrying some when travelling abroad.
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