The vanishing wallet: 38% of Americans say cash feels more “real” than digital money, yet just 18% use it daily

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 in practice, physical dollar bills may be fading from daily life: 1 in 5 say they use it 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” in times of financial downturns, and 1 in 5 Americans have increased their physical cash holdings in the past year due to market uncertainty. 

Key takeaways

• Nearly 4 in 10 Americans say each generation relies less on cash than the one before it (37%).
• Two in 5 say they feel safer keeping cash on hand in case of emergencies or tech outages (40%).
• 1 in 5 have increased the amount of cash they keep at home in the past year due to economic concerns.
• 55% would put $10,000 into a high-yield savings account—but 40% would keep it as cash for safety.
• The number one reason for using cash is tipping (48%) or making purchases at small businesses (46%).
• The average person holds between $51 and $100 in their “wallet.” Gen X is the only generation that carries more cash, averaging between $101 and $200.

Cash in a digital age

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 towards 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%).

Currency in action

While Americans’ savings goals are lofty, most regular cash carriers keep it light. 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 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%)
• 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, more than half (51%) say 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.

Additional study findings:

• Going up: 21% have moved money into high-yield savings accounts in the last 12 months due to higher interest rates.
• Market moves: 25% trust physical cash more than digital transactions during uncertain economic times.
• Banking on it: More than a third (36%) say they opened their first savings account before they turned 18.
• Age of cash: One in 5 plan to rely less on physical cash as they get older. 17% think about wanting to have cash on hand in retirement. 

Methodology:

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