Cash Is Out: Gen-Z Turns to Credit Cards in Emergencies

Credit One Bank, a leader in the credit card industry, published findings from a comprehensive survey exploring attitudes and behaviors toward emergency spending and “Rainy Day Funds” across generations.

The study, which analyzed responses from 1,000 U.S. adults ranging from Generation Z (Gen-Z) to Baby Boomers and beyond, found that while 65% of Baby Boomers who have cash/debit card(s) report maintaining a dedicated cash reserve for unexpected expenses, only 38% of their Gen-Z counterparts do the same.

Despite Gen-Z’s willingness to discuss money matters openly, their lower rates of cash saving underscore a gap in access to resources and foundational financial knowledge.

Other key findings include:

• 60% of American cash/debit holders aged 18–34 do not have a cash emergency fund, compared to 35% of those aged 55+.
• 24% of American credit cardholders have a designated emergency credit card used solely for the purposes of an emergency; 76% of respondents do not.

“The data we’ve uncovered underscores a profound shift in how Americans prepare for the unexpected,” said Steve Min, Chief Credit Officer at Credit One Bank. “While older generations have long viewed cash as their primary safety net, younger consumers are increasingly turning to credit lines to bridge gaps in their emergency planning. At Credit One Bank, we believe in empowering all cardmembers with the tools and guidance they need to build a balanced financial strategy: from growing cash reserves to responsibly managing credit. As payment behaviors evolve, our goal is to support every generation with innovative products, clear insights, and personalized advice so they feel confident no matter what financial emergency arises.”

All figures, unless otherwise stated, are from YouGov Plc.  Total sample size was 1150 adults. Fieldwork was undertaken between 10th - 11th April 2025.  The survey was carried out online. The figures have been weighted and are representative of all US adults (aged 18+).

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