US Monthly Cash Payments Fall to 6 From 14 as Virtual Spending Rises After COVID

Q: Millions of Americans secretly hoard hundreds of dollars at home, but what emergency are they truly preparing for?

They are mostly preparing for everyday financial shocks and payment-system failures, not some hidden catastrophe. The Federal Reserve’s payments data show cash is increasingly treated as a backup: nearly half of consumers keep an average of about $364 stored elsewhere, while 76% still carry some cash and 90% expect to use it in the future. The main reasons are practical. Cash works when card networks, power, internet or bank systems are down, and it is still useful for small in-person purchases, tips, local services and urgent needs. The larger “emergency” many households are preparing for is a sudden expense they may struggle to absorb otherwise. Fed household-finance surveys show 63% of adults say they could cover a $400 emergency with cash, savings or a credit card paid off quickly, but 12% say they could not cover that expense at all. About 55% report having rainy-day savings for three months of expenses, meaning a large share of Americans still face real liquidity risk from car repairs, medical bills, appliance failures or short-term income loss. So the cash at home is less about fear of societal collapse than about resilience. It is a buffer against the kinds of disruptions people actually encounter: broken cars, surprise bills, lost wallets, outages, storms and temporary banking problems. Even as digital payments dominate daily life, cash remains a low-tech reserve that many Americans trust when something unexpected goes wrong.

1 articles · Updated · AL.com · Aug 16

Six average monthly cash payments were recorded in 2025, down from 14 in 2016, according to the Federal Reserve’s annual consumer payment diary.
Virtual payments increasingly displaced in-person purchases after COVID-19, helping cut the share of consumers who prefer cash to 16% from 27% over the decade.
Cash still remained widely used: 80% of surveyed consumers used it within 30 days, 76% said they carry it, and 90% expect to use it in the future.
Older Americans relied on cash far more than younger adults, with people 55 and older making 10 monthly cash payments versus two among those aged 18 to 24.
The Fed said cash still serves as a primary tool for some consumers and a backup or store of value for others because of anonymity, broad acceptance and low transaction costs.

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AL.com4d ago

US Cash Payments Decline Over Decade, Virtual Payments Rise Post-COVID

As digital wallets dominate, will the death of everyday cash leave vulnerable populations locked out of the modern economy?

With cash payments plummeting, what happens to your financial privacy when every purchase is permanently tracked online?

Millions of Americans secretly hoard hundreds of dollars at home, but what emergency are they truly preparing for?

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Right100%

AL.com4d ago

US Cash Payments Decline Over Decade, Virtual Payments Rise Post-COVID

US Monthly Cash Payments Fall to 6 From 14 as Virtual Spending Rises After COVID

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