(BPT) - Close to 2 in 5 Americans (38%) say cash feels more "real" than digital money: It's a tangible reminder of value, and remains a permanent part of their financial toolkit (27%). Yet, new Empower research shows that in practice, physical dollar bills may be fading from daily life: 1 in 5 say they use cash only a few times per year, and just 18% use it daily. Still, a quarter often find themselves in situations where they wish they had cash on hand.
Its popularity may be dictated by what's going on in the economy, as a quarter (25%) view cash as a "safety net" currency in times of financial downturns, and 1 in 5 Americans have increased their physical cash holdings in the past year due to market uncertainty.
While a third (35%) say they are mostly cashless, for close to 1 in 5 Americans (19%), dollar bills remain a trusted form of payment — something they actively use and keep in significant amounts. Overall, 40% of people feel safer keeping some cash on hand in case of emergencies or tech outages.
Nearly a quarter say they use cash for privacy (21%) in an AI-driven, digital world. The same amount also turn to cash when they want to limit their spending for the day (24%). A third say they're more likely to make impulse purchases with digital payments (33%), and spend more without the natural guardrail of cash (27%).
With the shift toward digital payments (e.g., debit cards, credit cards, mobile wallets, etc.), 27% say they are more likely to pay bills and save automatically. More than a quarter have better awareness of their spending patterns (27%) and spend less because they can track everything digitally (22%). Close to 1 in 5 admit that if cash disappeared, they'd spend less (17%).
The average person holds between $51 and $100 in their "wallet," consistent with the $66 cash average from last year's study. Gen X is the only 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%).
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.
Empower's "The Vanishing Wallet" study is based on online survey responses from 1,039 Americans ages 18+ from August 18–19, 2025.
