Credit Card Usage Dropping Among Millennials*
Published on June 25, 2013
As reported in a recent article by The New York Times a new analysis by FICO found that 16% of people between the ages of 18 and 29 do not have any credit cards, a 7% rise since 2005. So what are these young people using instead of credit cards? The analysis found that debit cards, pre-paid cards, and mobile payment services are the top choices for this group.
The Great Recession had a dramatic effect on how young people use and look at credit; witnessing the older generations suffer because of the downturn changed the Millennials’ perspective. Due to the drop in the number of Millennials who use credit cards, overall debt has gone down for this age group in everything except student loans.
So what should Millennials do with these new found savings?
With Millennial debt decreasing in all areas except student loans, setting up a retirement account is a great option. With pension plans becoming rarer and Social Security on its way out, Millennials need to start thinking about retirement now. This generation is not guaranteed anything when it comes to retirement; it is up to them to make sure they will be prepared.
If you’re a member of the Millennial generation, retirement may seem like it’s a lifetime away but believe us when we say, the earlier you start saving for retirement the better off you will be in the long run. Those years will go by quickly and no one wants to turn 55 and realize they haven’t saved a dime for retirement.
The professionals at Next Generation Trust Services are here to answer your questions about opening a self-directed IRA to get you started with your retirement savings, through investments in traditional or alternative assets. If you’re interested in learning more about this retirement strategy, contact us for more information or check out the resources on our website.
* Millennials are the group of people born between the early 1980’s and late 1990’s.Back to Blog