The People Quietly Preserving a Place for Cash in a Digital World

In a world increasingly dominated by digital transactions, a quiet but growing group of New Zealanders are holding onto cash for a variety of reasons. From emergency savings to giving to the less fortunate, physical money continues to play a role in the lives of many, even as its use declines overall.

The Reserve Bank of New Zealand is currently conducting its biennial survey to understand how the public uses, stores, and spends cash. This year's survey includes questions about payment preferences, frequency of cash use, and the challenges of depositing and withdrawing physical currency.

In Dunedin, residents shared their experiences with cash. Sheryn Wilson, for instance, said she uses cash mainly to give to the homeless and for small family needs. "Occasionally, I'll get out $20 in change and give it to my granddaughter to give to the people along here. That's basically all I use it for. To give the homeless... but that's it," she said.

While many, like Clive Cockle, still carry cash for emergencies, others, like Daniel (who asked not to be named), actively avoid it to curb spending. "I find it hard to save money if I've got cash lying around — I'll just spend it straight away," he said.

The Reserve Bank's Cash Manager, Ian Woolford, acknowledged that habits are shifting. The last survey found fewer people using cash on a daily basis, but those who do use it more frequently and value it for privacy and safety. "The work that we're doing is to make sure that consumers can use it when and as they please," Woolford said.

However, shopkeepers are finding it harder to manage cash, particularly in areas with fewer bank branches. Ankit Bansal, chairperson of the Dairy and Business Owners Group, said dairies are increasingly being used as makeshift banks for small cash withdrawals. "Banks — this is their job. Essentially we're seeing them picking and choosing what services they're providing. So I hope to see some action on the banks," he said.

Retail New Zealand's CEO, Carolyn Young, said cash is on the decline but not yet gone. "Fewer than one in ten nationwide retail transactions are now in cash. It's certainly always diminishing, but how long that tail is, we're not sure," she said.

Meanwhile, educators are raising concerns about the impact of cash's decline on children's financial literacy. Jamie Jermain, co-founder of the SquareOne app, said many children are becoming disconnected from the physical aspects of money. "What kids are getting more and more used to seeing is their parents essentially tapping this magic wand on a terminal. They don't have that connection with money, they don't see how it works on a day-to-day basis," Jermain said.

As the Reserve Bank's survey closes on 10 October, the future of cash in New Zealand remains uncertain. Whether it continues to hold its place in the economy or fades further into the background, the voices of those who still rely on it are worth listening to.