Gen Z Turn to Cash

Gen Z is defined as  those born between 1997 and 2102, with current ages of 12 to 27 and it seems that, as living costs have risen, the older members of Gen Z have embraced cash as useful method of payment and budgeting.

This shift holds implications for businesses across the spectrum, requiring them to adapt their strategies to accommodate this changing transaction dynamic.

Gen Z's Cash Affinity and Its Impact

Amidst rising living costs, research shows that 18–24-year-olds are leading a surge in cash usage. Nearly 70% of people in the Gen Z age group report using cash more frequently within the past year, with many of them turning to 'cash stuffing' as an effective means budgeting in response to rising costs. 

Although cash stuffing is a technique that’s been around for a while, it has seen a significant uplift in recent months - particularly among younger consumers who spend more time online.
Cash stuffing is essentially a budgeting method that prioritises cash over credit cards to pay for things. It went viral on TikTok, with some videos that highlight the success of this method garnering millions of views. Amid the pressures of inflation, it has helped many consumers more effectively keep track of their spending and cut excess costs.

The basic premise of cash stuffing is that cash is set aside for different budgeting categories at the beginning of each month. The goal is to spend no more than the cash set aside for each category.

The cash stuffing method gives younger consumers a better sense of how much money they have left over each month for leisure spending. When using cash, they physically see the money leaving their hand, which creates a psychological impact.

These findings are intriguing considering that Gen Z, having grown up in the digital age, is now using cash more frequently than their Gen X counterparts. This shift highlights the potential for increased cash on business premises.

Adjusting Retail Strategies

The surge in cash-centric transactions prompts a need for retailers to consider  their operational strategies in order to  adapt to this changing landscape;  to find a balance between traditional and innovative approaches. Businesses must ensure seamless customer experiences, accommodate the uptick in cash usage and ensure that the cash taken is effectively managed.

How to Adapt to Gen Z Cash Trends

To navigate this evolving transaction landscape, retailers can proactively embrace strategies that accommodate the young adult generation’s growing use of cash.

Empower Employees through Training

It is crucial to ensure that employees are well-versed in efficient cash handling techniques and security protocols. Providing comprehensive training equips staff with the knowledge to accurately count, verify, and store cash. Training programmes should cover areas such as:

• counterfeit detection
• accurate cash reconciliation
• maintaining best practices during peak hours

Educated employees not only reduce the likelihood of errors but also contribute to a smoother and faster checkout process, enhancing the overall customer experience. All that being said, managing cash manually takes time - and the cost of that employee time. It’s open to errors and theft, and diverts employees from other more productive tasks.

Effective Cash Management

Investing in effective cash counting and sorting solutions, such as cash recyclers and smart safes streamlines manual cash processing. 

These automated systems offer validation, sorting, and accurate counting capabilities, minimising errors. 

Innovative in-store depository solutions like the Loomis range of smart safes provide secure cash storage and substantially enhance operational efficiency

Strengthen Security Measures 

With more cash on hand, security becomes paramount. 

Implementing robust security protocols, including surveillance systems, and secure transport services for cash deposits, discourages theft and ensures a safe environment for employees and customers. Regular security training enhances risk awareness and educates employees on vulnerability minimisation, fostering trust and enhancing positivity and confidence in the workplace.

Cash Handling Solutions 

In a dynamic financial landscape, partnering with a cash handling expert like Loomis will optimise cash handling processes, mitigate security risks, and streamline operations. 

Loomis' specialised expertise in cash management and transportation ensures businesses can effectively navigate Gen Z's evolving transaction preferences, embracing change while maintaining security and efficiency.

 Contact Loomis today to get your business set up for effective cash management.