Do you prefer a TikTok dance challenge to doing the twist? Would you rather watch movies on the silver screen or at home on a streaming service? How you answer questions like these may depend on when you grew up and what was popular during your formative years. And that’s also true for spending habits — different generations have been influenced by the financial environments they grew up in. Here are a few generational trends when it comes to credit card use.
Baby Boomers
Baby Boomers came of age in the 60s and 70s amid a spirit of rebellion and change. And as they grew up, they became economic powerhouses. The bank-issued credit card first emerged in the U.S. in 1958 and became increasingly popular through the 70s and 80s — Boomers were early adopters. While their average personal credit card debt is on the higher side at $6,245, Boomers are more likely to be able to manage that level of debt as they now hold around half the household wealth in the U.S. Boomers are by far the most likely generation to use credit cards whenever possible: 35% say they use them for all eligible purchases.
Generation X
As the “latchkey kid” generation, Gen X is reputed to be self-reliant and anti-establishment. But despite their dogged independence, Gen Xers depend on credit cards more than any other generation, with an average of $8,134 of debt per person. They’re also the most likely group to use credit cards for emergencies. However, they’re less likely than younger generations to rely on them for everyday purchases.
Millennials
Millennials grew up in the information age. Known as tech-savvy and adaptable, they’ve endured multiple economic upheavals, including the 2008 recession when many were entering the workforce. This may have impacted their credit card habits, with 28% of Millennials saying they use credit cards for daily expenses. They’re also the generation most likely to use credit cards more than once per day — 20% say they make multiple credit card purchases daily. The average credit card debt for Millennials is $5,649.
Generation Z
Gen Z is the first generation to grow up in a fully digital and highly interconnected world, so they’re quite used to integrating credit cards with digital wallets. Although they hold the lowest amount of credit card debt at an average of $2,854 per person, Gen Z is the most likely group to use credit cards for everyday purchases — a whopping 31% state that they rely on them for daily expenses.
Ageless Advice for Managing Credit Card Debt
If you find yourself overwhelmed every time you open your credit card statement, here are some things you can do regardless of your age:
Make a debt reduction plan and stick to it. Reduce expenses to speed up debt pay-down. Increase your income with a side hustle. Take advantage of 0% balance transfer offers. Try to negotiate lower interest rates with lenders.
If you need assistance managing credit card debt, reach out to a Financial Professional to help you make a plan. After all, trends may come and go, but maintaining your financial health never goes out of style.
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