The effect of our reliance on digital transactions was demonstrated recently by a study which showed the younger members of the workforce now see payments involving cash as tantamount to “free money” compared to card transactions.
The so-called Generation Z – those aged 18-24 – think this way because there is no digital trace of what they are spending.
This is in total contrast to older generations who see paying with notes and coins to be more “real” because they are physically exchanging money.
The credit broker, Little-Loans.com commissioned research from 2,000 people after a Twitter trend saw users divided over what constituted real money.
And while most 18-24 year olds agreed that “paying with cash feels free”, almost everyone else – from 25 to 65 year olds – disagreed.
Financial Expert Paul Wilson said the survey results were “a fantastic way to represent the changing attitudes towards cash in an increasingly digital society”.
Mr Wilson, a consumer finance expert at the Financial Conduct Authority: “The stark contrast between the feelings of Gen-Z and their elders is to be expected, with most Zoomers having access to online banking for the majority of their financial experience.
“It is the belief of many that card payment can be dangerous for overspending, which is mirrored in the feelings of the older generations. However, the data indicates a change in attitude and perhaps younger generations will be more mindful with card payments than with cash spending.
“According to the data, Zoomers don’t subconsciously consider their cash to be part of their overall finances, which can be dangerous for young people going to uni and not correctly calculating their assets.”
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