Our financial lives are increasingly dominated by digital transactions, yet for many people, cash remains a vital form of payment and an essential budgeting tool. Discover how attitudes towards physical money vary between generations and which UK cities are most reliant on cash.
In a survey conducted by OnePoll on behalf of NerdWallet UK, 2000 adults were asked about the factors influencing their use of cash, uncovering age and regional differences in how reliant people are on physical money in 2025.
Four in five Brits will use cash for spending and saving in 2025
British consumers aren’t ready to go cash-free just yet. In fact,For many consumers, cash plays a central role in helping them manage their money. Just 4% of adults surveyed are ruling out using cash entirely this year.
NerdWallet’s survey revealed that almost four in five Brits (79%) plan to use cash for some spending and saving in 2025, and over one in ten Brits (11%) expect to heavily rely on physical forms of payment this year.
More than a quarter (27%) of UK adults plan to use cash only when necessary – such as in places that don’t accept cards.
Just under a quarter (24%) indicated they would use cash in certain circumstances, including specific purchases or savings, tipping service staff, or contributing to a child’s piggy bank.
The survey also reveals that 18 to 24 year olds are the most cash-reliant age group in 2025 (85%), while 45 to 54 year olds plan to use cash the least (75%).
Almost nine in 10 young UK adults plan to save and spend with cash in 2025
Using cash for purchases and savings in 2025
Overall
18 to 24
25 to 34
35 to 44
45 to 54
55 to 64
65+
Plan to use cash
79%
85%
78%
78%
75%
79%
77%
Unsure about using cash
18%
11%
17%
17%
21%
17%
19%
Do not plan to use cash
4%
4%
5%
4%
4%
4%
4%
Percentage of Brits planning to use cash for purchases and savings in 2025, by age group
Younger people and senior citizens depend on cash the most
Young adults aged 18 to 24 and senior citizens aged 65 and over are more likely to turn to notes and coins for their everyday spending as they navigate the rising cost of living.
Around 1 in 8 (13%) of adults in these age groups plan to rely heavily on cash for most purchases and savings, higher than any other age group. However, more than a quarter (26%) of both age groups plan to use cash only when necessary in 2025.
Consumers aged 65 and over are more likely to use cash for specific purposes, such as shopping at small stores or tipping (28%).
UK adults aged 25 to 34 years old (31%) are most likely to restrict cash spending to only when necessary. They are the least likely age group to heavily rely on cash for most purchases and savings (8%).
The data suggests that men (80%) are slightly more likely than women (76%) to use cash as part of a regular spending and saving strategy.
Young UK adults plan to rely on cash as much as older generations in 2025
How Brits plan to use cash for purchases and savings in 2025
Overall
18 to 24
24 to 34
55 to 44
45 to 54
55 to 64
65 and over
I will use cash only when necessary (e.g., places that don’t accept card)
27%
26%
31%
26%
27%
24%
26%
I plan to use cash for a few specific purchases and savings (e.g., small shops, tipping, piggy bank)
24%
23%
22%
22%
21%
23%
28%
I plan to rely heavily on cash for most purchases and savings
11%
13%
8%
9%
9%
12%
13%
I will only use cash for emergencies
9%
13%
8%
9%
12%
11%
5%
I’m planning to reduce my cash spending
5%
7%
6%
7%
4%
6%
3%
I plan to stop using cash entirely and rely on digital payments
4%
4%
4%
5%
4%
4%
4%
I will only use cash as part of a savings strategy
3%
4%
3%
4%
3%
2%
1%
Percentage of Brits by age group
Over one in five UK adults plan to use cash in order to stick to budget
When money is tight, many British consumers find it easier to manage their spending using ‘retro’ budgeting methods like cash stuffing. Over one in five UK adults (22%) plan to use cash as a tool to help them stick to a budget according to NerdWallet’s research.
The data also reveals that 30% of adults plan to reduce personal expenses or stick to a budget more strictly this year. This was of particular importance for 25 to 34-year-olds, the most likely group (42%) to use budgeting as a way of reaching their savings goals.
Those living in Portsmouth were almost twice as likely (41%) as the national average to cite budgeting as a reason for using cash this year. Swansea residents were the least likely to use physical to help them stick to a budget, with only 6% including this in their reasons for using cash.
While one in five (21%) plan to use cash out of a lifelong habit, for senior citizens over the age of 65, this rose to 31%.
Other top reasons for using cash this year include specific expenses, such as parking, public transport or fuel (20%). Rising fuel costs are a major financial concern for almost 1 in 5 (17%) of Brits this year.
Using cash for travelling (21%), financial gift-giving (19%), avoiding the temptation of overspending through tap-and-go (19%), reducing reliance on digital payments (18%) and avoiding minimum card payments (16%) also made the top 10 reasons Brits plan to use cash this year.
Amy Knight, Personal Finance Expert at NerdWallet
What our Nerds say…
“Sticking to a tight budget can be easier with physical money as you can clearly see how much is left.
Unlike ‘tap and go’ contactless purchases, where it’s easy to avoid looking at the amount on the card reader, using cash is increasingly being seen as a way to spend more mindfully.
Assigning portions of your income to different ‘needs’ (such as bills, groceries and fuel) and ‘wants’ (like takeaways and fashion items) can help you be more conscious of mindful of spending decisions, something that can be much more difficult when using ‘tap-and-go’ contactless card payments.”
Support for businesses and limiting spending among top reasons Brits plan to use cash in 2025
The survey revealed that many Brits plan to use cash to support businesses in 2025, with 40% intending to use physical money to shop in stores that don’t accept cards. A quarter of consumers (25%) say they will pay with cash to help small businesses avoid transaction fees, the rising cost of which puts financial pressure on small retailers.
Gloucester is the UK’s most cash-friendly city for small businesses, with 43% planning to use cash in support of smaller enterprises in 2025, followed by Brighton and Hove (39%) and Aberdeen (37%).
More than a third (34%) of those aged 65 and over plan to support local businesses by using cash – more than any age group. Young adults aged 18 to 24 are least likely to opt for cash purchases to help out small businesses.
Rank
Top 10 reasons Brits are planning to use cash in 2025
Percentage of Brits
1
For paying in places that don’t accept cards (e.g., small businesses, convenience stores, takeaway shops)
40%
2
To support small or local businesses so they don’t have to pay transaction fees
25%
3
To stay within my budget or limit my spending
22%
4
Out of habit, I’ve been spending with cash for the majority of my life
21%
5
For ease of use when travelling
21%
6
For specific expenses like parking, fuel, or public transport
20%
7
To give gifts i.e. cash for children’s piggy banks or spending
19%
8
To avoid the temptation of overspending through tap-and-go / card payments
19%
9
To avoid relying on technology or digital payments
18%
10
To avoid minimum card payments
16%
The UK’s most cash-reliant cities
The survey identified Chelmsford as the UK’s most cash-reliant city in 2025, with 93% of residents planning to use cash as a key part of their spending and saving strategy.
Brighton & Hove (86%) and London (83%) follow closely as residents in these areas also look to prioritise the use of cash: More than one in 10 residents in these cities plan to rely on cash heavily this year (14% and 12% respectively).
Belfast, Liverpool and Leicester tie as the top three cash-reliant UK cities with over four-fifths (83%) of residents planning to use cash this year.
Capital cities London and Belfast rank among most cash-reliant locations in 2025
Rank
City
Brits planning to use cash the most in 2025 (%)
1
Chelmsford
93%
2
Brighton and Hove
86%
3
London
83%
4
Belfast
83%
5
Liverpool
83%
6
Leicester
83%
7
Coventry
81%
8
Norwich
81%
9
Portsmouth
79%
10
Oxford
79%
Tips and advice for using cash to spend and save in 2025
Despite the rise of digital payments, it’s clear that cash remains a vital savings and spending strategy for UK consumers. Our research shows a high proportion (79%) of Brits plan to use physical forms of payment in 2025, with younger adults leading the way.
Shoppers also see cash as a means to support small businesses by helping them avoid transaction fees. This points to the public recognition of the economic pressures facing small enterprises as National Insurance hikes and minimum wage increases loom.
Own your budget
Whether or not you embrace the resurgence of cash, if you’re regularly running out of money for essentials, that’s a clear signal that your budget needs adjusting. Consider where habitual or discretionary spending could be reduced to help you make it to payday without borrowing.
For example, switching to a cheaper supermarket or choosing own-brand products could bring down your grocery bills despite food inflation. To reduce non-essential outgoings, switch off auto-renewal on app-based services and consider pausing memberships and subscriptions you rarely use or can live without.
Keep a record
For people making the majority of their purchases online or by card, mobile banking apps that automatically track and categorise spending make it quick and easy to see where your money is going each month. Those who pay predominantly by cash need to hold onto receipts or write down individual transactions – a potential downside of switching to cash-based budgeting.
Some stores offer an email receipt, so if you’re making a higher-value purchase with cash, it’s worth asking for a digital proof of purchase in case you misplace the paper receipt.
Staying safe with cash
Choosing to leave your cards at home can be an effective way to prevent overspending: If you only take cash when you head to the shops or go out with friends, you can’t accidentally dip into your overdraft.
However, you may feel safer having access to additional funds in case of an emergency. For example, if you missed your bus and needed to pay for a taxi home.
It can help to talk to your friends about your financial goals and the spending limits you’ve set yourselves, and to hold each other accountable, but be wary of sharing out loud how much cash you’re carrying.
For further information and exclusive commentary, please contact [email protected].
This online survey of 2,000 UK Adults (nationally representative on the basis of age, gender, city and employment status) was commissioned by Porter Novelli on behalf of NerdWallet and conducted by market research company OnePoll, in accordance with the Market Research Society’s code of conduct. Data was collected between 2nd and 8th January 2025. All participants are double-opted in to take part in research and are paid an amount depending on the length and complexity of the survey. This survey was overseen and edited by the OnePoll research team. OnePoll are MRS Company Partners, corporate membership of ESOMAR and Members of the British Polling Council.
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