hanks to the advent of digital wallets, online bill payment, and Venmo, it’s never been easier to go through your day without ever breaking a $20 bill—not to mention ever pulling one out of your wallet. Except if you’re a member of Gen Z: A 2023 survey conducted by The Harris Poll for Credit Karma found thatthan they had the year before, and 23 percent said they use cash for most of their purchases.
The act of physically parting with cash can instill a more visceral understanding of spending and loss than using a digital wallet or a physical card to buy things, Shuminer says. Seeing the amount of bills you hand over to pay for that oat milk latte, or watching your envelope get slimmer over the course of the month, can encourage people to make more thoughtful spending decisions.
Not every month will look exactly the same—maybe you’re going to a concert or have a bachelorette party to attend—so start by looking at your anticipated expenses for the coming month, Shuminer says. It’s also helpful to revisit your spending over previous months to determine what your historical spending is on each category, she adds.