Younger Canadians carry the most cash at $206, but credit cards lead with 46% of purchases
Canadians may increasingly prefer digital payments, but younger adults are carrying the most cash in their wallets.
The Bank of Canada’s 2024 survey on payment methods found that those aged 18 to 34 held an average of $206, the highest among all age groups.
By comparison, 55 and older were most likely to have cash on them, at 86.8 percent, more than 10 percentage points higher than other demographics.
Overall, Canadians reported keeping $156 in cash on hand, $16 more than in 2023.
Adjusted for inflation, the Bank of Canada said cash holdings have stayed “quite stable” since 2017, despite fluctuations during the COVID-19 pandemic.
Spending patterns reflected ongoing reliance on credit.
Credit cards accounted for 46 percent of purchase volumes in 2024, followed by debit cards at 23 percent.
Mobile payments, which include transactions through smartphone apps linked to credit cards, are gaining momentum, reaching nearly five percent of transactions, up a few percentage points from the prior year.
Despite more digital options, cash remains resilient.
The survey showed Canadians still used it for about one in five purchases. The Bank of Canada noted that use of cash had been on a steady decline before the pandemic, but levels have held steady in recent years.
This diverges from the United States, where researchers observed continued annual declines in cash use.
Income levels also shaped behaviours.
Those in the lowest income bracket typically carried the least cash but relied on it most for payments.
Canadians are also using ATMs and bank branches more often, withdrawing larger amounts each time.
The Bank of Canada said 79 percent of Canadians had no plans to go cashless in 2024. Eight percent expected they would eventually do so, while 13 percent said they were already cash-free.
These figures have not shifted since 2022.
The survey, conducted with Ipsos from mid-October to mid-November 2024, involved more than 4,000 participants, some of whom logged their purchases over several days.
The Bank of Canada said it studies these cash preferences and behaviours as part of its role in managing the country’s payment systems.
