Personal finance experts break down when to pay with cash or credit -- and plastic is a must while on vacation.
Cash remains king in America, despite credit and debit cards, mobile wallets like Apple Pay and peer-to-peer money transfer apps like Venmo providing more payment options than ever. In fact, about a quarter (24%) of Americans still use cash for all day-to-day purchases, making it the most-used payment method, according to the Global Cash Index. Americans dropped more than $2.3 trillion in cash in 2015, and about two-thirds prefer using cash for anything $10 or less.
Discover’s summer travel survey released Monday also found that the youngest vacationers are the most likely to use cash. More than one-third (35%) of Gen Zers (ages 18 to 21 in this report) pay in cash while away, compared to just over a quarter of Millennials and Gen Xers. “I’m certain that age is a big factor here, since many in their teens and early 20s may not have a credit card yet,” suggested Emina Dautovic, Discover’s senior marketing manager.