Cash use on the rise

Cash is making a comeback in UK shops, having been used in one-fifth (19.9%) of all transactions last year.

While debit cards are the most common way to pay, the British Retail Consortium’s (BRC) findings show that physical dosh is still important in today’s economy.

In fact, it’s the second most popular way to pay for things.

Changing habits

Many people are changing their spending habits because of the ongoing cost-of-living crisis.

Having some coins in your pocket can make it easier to budget – and it shows.

The BRC says that although we’re visiting shops more often, we’re not buying as much.

On average, we spent just over £22 per purchase in 2023, 40p less than the year before.

Why cash matters

Charities however have raised concerns about moving to a cashless society.

Some groups, like women in abusive relationships, rely on cash to escape their abusers.

Deirdre Cartwright from Surviving Economic Abuse points out that having cash means women can access the basics:

"Often times access to cash is their only means to actually accessing essentials for themselves and their children.

"It's a means for them to be able to escape an abuser, especially when that abuser can track them through a bank account, so it's incredibly important for their safety and survival."

Many older adults and those with poor mental health also prefer cash.

They can lack the digital skills needed for a cashless world, confirming why cash remains important for so many people.

Trends in payment methods

Previous research by LINK, the UK’s cash access and ATM network, shows that most of us want the option of paying with cash (81%).

Perhaps surprisingly, the research found that younger people are more likely to use cash than older generations.

Nearly one in five (17%) under 24-year-olds said they preferred this method of payment.

Budgeting with cash

Whether you're budgeting for essentials or just keeping an eye on your spending, having some change can be very helpful

Creating a budget can go a long way in helping you achieve your financial goals, whether it’s saving up for something special or making sure your money will last the month.

We’ve got loads of tips to help you get started, and why not let our free budget planner do all the hard work for you?