Lily Smith
Like a mother, like a daughter? Like a father, like a son? in spite of Increased prevalence of digital payments In today’s world, young people continue to use cash. Even among young people who grew up on debit cards and smartphones, the persistence of cash use raises interesting questions about factors that influence young people’s payment choices. Are they really rebelling against their parents, or are they more like them than they care about them admitting? Young people follow in their parents’ footsteps and seem to opt to use cash as their parents do. And instead of looking at their advice, young people are actually heading to them for tips and tips on managing their money.
In 2024, the Bank of England conducted a survey with 3,000 young people, which helped them to better understand young people’s payment behavior and attitudes towards cash. This survey was characterized by a quantitative online survey of 2,000 11-17 years old and 1,000 18-25 years old, which was representative nationwide across gender, age, region and socioeconomic background. Respondents were asked about the payment methods they most commonly use, why they use cash, how to receive cash, what they do immediately after receiving cash, and what they do and what they are most likely to give advice on managing their money.
The Bank of England conducts biennial surveys of UK adults age 16 and over for payment preferences. Even after Covidcash is still preferred by about one in five UK adults. However, this survey does not fully grasp the paying attitudes of people under the age of 16. Therefore, our youth survey aims to support banks’ understanding of future cash demand for this age demographic, inform forecasts and policy decisions, and ensure that banks’ commitment to cash extends to all ages.
Of course, there are limitations to the investigation. Our youth survey only covered a sample of the population ages 11-25, and was only online. From previous surveys conducted by banks, we know that telephone respondents tend to have higher cash users than online respondents.
However, given that the survey meets demographic allocations and outcomes, we believe the results broadly reflect the attitudes of young people towards various payment methods. The results were also supplemented by 10 qualitative in-depth interviews, allowing us to dig deeper into the reasons behind the payment options for young people.
Please note that the term “parent” is used throughout this article to cover individuals who are influential in the life of their children, including, but not limited to, relatives, guardians, and caregivers.
So, what does the research show?
Cash usage decreases as children age, with 83% of early teens (ages 11-12), 80% of younger teens (ages 13-14), and 77% of older teens (ages 15-17) using cash. Cash usage drops even further at age 18. However, cash is a payment method for all ages between the ages 11 and 25. Overall, 80% of people aged 11-17 and 67% of people aged 18-25 use cash when making payments.
Some teens hope to make the transition to card payments when they are older enough, reflecting their perception that alternative payment methods for cash may be related to becoming “adults.”
Chart 1: Answer to the survey Question: How do you pay for things?
Source: Bank of England Cash Survey on Youth Attitudes 2024.
Additional findings highlighted that youth in Northern Ireland and Yorkshire had the highest cash usage, with male respondents being more likely to use cash than female respondents. This resonates with the results of the Bank of England biennial survey of UK adults aged 16 and older, with cash preferences highest among Northern Ireland, Wales, the Northeast and male respondents.
There are several reasons why young people choose to use cash, including its ease of use and the usefulness of budgeting. Some use cash to “meet vendor preferences,” and 22% of young people mention “want to use it,” pointing to more emotional cash use drivers. For some young people, they also rely on cash, with 59% of people with disabilities using cash as a face-to-face payment method.
However, for all respondents, parental cash use has the most impact on whether young people use cash.
Apples are not far from the tree…
Young people at all ages surveyed who use cash by their parents say they are more likely to use cash on their own. This pointed to both the learned behavior and the practicality of cash use. If your parents like to spend cash, you are more likely to get cash from them and will use it yourself.
So, what are the main ways children get cash? Naturally, the outstanding way is to make money or as a gift from a loved one on a birthday or Christmas (cues the “accidental” act of cash dropping off from the card). 61% of 11-17 years old and 29% of 18-25 years old will receive cash as pocket money, while 24% of 11-17 years old and 34% of 18-25 years old will receive cash as gifts.
Chart 2: Most likely way for young people to divide by age
Source: Bank of England Cash Survey on Youth Attitudes 2024.
For 45% of 11-17 years old and 21% of 18-25 years old, the main reason they use cash is because parents and family members provide it and make the decision to make cash a more passive choice than active one.
The way parents handle money can also affect the child’s attitude towards cash. If parents use cash primarily for daily spending, they say that children are more likely to adopt similar behaviors. People whose parents are heavy cash users are more likely to have a higher cash value in their wallets and wallets than people whose parents are not heavy cash users. However, this was not expressed as a conscious choice. Young people say they are easily or carelessly familiar with these behaviors. Perhaps they are chips from old blocks after all.
My mother knows the best…
As you can imagine, social media is a significant source of financial advice for young people. Approximately a quarter of young people turn to social media as their main outlet for financial management advice. Cash stuffing and “influencers.” In fact, 14% of young people use Tiktok as the main source of financial advice, while 27% take financial inspiration from schools and other educational institutions.
However, contrary to popular belief, not all young people have their heads buried in their mobile phones, with 73% of 11-25 year olds relying on their parents and other families for financial advice. Although the prevalence of this decreases as respondents age, parents are still the most common source of advice on money management for ages 22-25.
Chart 3: Where do young people help with how to manage their money?
Source: Bank of England Cash Survey on Youth Attitudes 2024.
In households where parents are open about their financial struggles and goals, young people often get a first taste of wisdom directly from the source. In particular, parents from low-income backgrounds may emphasize the importance of saving, avoiding debt and budgeting, focusing on cash as a tool to maintain their finances. Survey for 2023 Lloyd’s Bank Similarly, 83% of parents found that cash is important for their children’s understanding of finances.
Young people may also learn the value of money by receiving pocket money as a payment for doing household chores. Handling real money can help them get hangs in savings, spending, budgeting… and telling them that clean rooms are worth at least £5.
Final Note
Young people still reach for cash more than other payment methods. And that’s because of my parents. Parents influence their children’s financial habits through their cash usage and by teaching important lessons about managing their money. Whether intentional or merely an example, parents are key to maintaining cash related to the financial choices of the younger generation.
Lily Smith works in the bank’s future money division.
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