Cash is dying, here’s how much less we’re using it

Remember when you actually had to carry cash?

Apparently, fewer of us are doing that these days. A new Federal Reserve report looking at a decade of payment habits shows just how dramatically Americans have changed the way they spend money.

Back in 2016, cash accounted for roughly one-third of all consumer payments. By 2025, that had fallen to just 14%. That’s a drop of about 17 percentage points, which is more than half of cash’s share of the payment market.

focus photography of person counting dollar banknotes

And yet, cash isn’t exactly dead.

Americans made an average of 47 payments per month in 2025. Six of those were made with cash, putting it third behind debit and credit cards. Credit cards accounted for 16 payments per month and debit cards,15.

Four out of five Americans used cash at least once during the previous 30 days. That’s actually more than those who used credit cards (71%) or debit cards (67%).

a person holding a credit card in front of a machine

Likely to the surprise of no one, cash is particularly popular with older Americans. People 55 and older averaged 10 cash payments per month, compared with just two among people between 18 and 24.

Households earning less than $100,000 averaged seven cash payments, compared with five for households making more than $100,000.

person holding brown leather card wallet

Where you live matters, too.

Rural residents averaged nine cash payments per month, compared with six for people in urban and suburban areas.

And plenty of people are still keeping some cash handy. Seventy-six percent carried cash in 2025. What’s the average amount in a wallet? $69. Forty-five percent kept cash somewhere else for savings or emergencies, averaging $364.

Which is far less than the walking around money disgraced ‘Gold Bar’ Bob Menendez kept in his closet. But I digress.

Even after all that decline, 90% say they plan to keep using cash.

So, no, cash isn’t quite dead yet. It just isn’t getting invited to as many parties in its old age. And it does seem destined for the graveyard.

Opinions expressed in the post above are those of New Jersey 101.5 talk show host Jeff Deminski only.

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