Young adults prefer plastic
CHEYENNE - When millennials hit the convenience store for a soda or pack of gum, the question from the cashier ought to be 'Credit or debit?,' rather than 'Cash or charge?'Young people are more likely to use plastic than cash, even for small purchases under $5, according to a recent survey from CreditCards.com.The survey found that 51 percent of consumers between the ages of 18 and 29 prefer using credit or debit cards to cash. By comparison, only 18 percent of people over the age of 65 prefer using plastic.Using credit and debit cards rather than cash can foster unhealthy spending habits, experts say. Studies have shown that using cash has the psychological effect of reducing overall spending.'When you're handing over a card, it's just not the same psychologically as pulling a $20 bill out of your wallet,' said Dixie Roberts, a local financial adviser.Jill Lucero, a business teacher at Cheyenne's East High, agrees.Lucero teaches a financial literacy class for high school students called Money 101. A couple of years ago, she challenged her students to go a month without using debit or credit cards.The results were remarkable, Lucero said.'None of us, myself included, spent as much money that month,' she said. 'It was really hard, but we all saved a ton of money.'Part of the reason the challenge was so difficult for Lucero and her students is because debit and credit cards are often much more convenient to use than cash.Jenny Henley, 24, bought coffee and a snack at a convenience store on Lincolnway Friday. Her purchase was less than $4, and she used a debit card.'I never carry cash,' Henley said. 'Why would I? Cards are just easier. Plus, I don't have to worry about losing my bag with my wallet and a bunch of cash in it.'Roberts said, 'We live in a world where it's just much easier to use plastic.'With a debit or credit card, you don't have to go to the bank, you don't have to make trips to the ATM. This is a 'debit-or-credit?' world.'Roberts, who has a handful of millennial clients, said, 'One of the biggest things we focus on when advising young people is managing debt. With so many student loans and credit cards being handed out, it's important to keep debt at a minimum.'College students are particularly susceptible to falling into the credit card debt hole, which can take years or decades to climb out of.Zeke Sorenson, the campus activities program manager at Laramie County Community College, said, 'When you turn 18 and you are a college student, you get flooded with credit card applications. And once you get the cards, they are so easy and convenient to use, students start using them too much.'He added, 'The credit card companies are preying on the fact that these students are broke and need money.'To combat this predatory behavior from companies and help students avoid debt, Sorenson said LCCC bars credit card companies from soliciting on campus.The school also requires first-year students to take a class that includes a lengthy unit on financial literacy, Sorenson said.Lucero said financial literacy classes like Money 101 are available to all local high school students, but they are not mandatory.'I really wish they were,' she said.'I have kids that come back from college all the time and say, 'Thank you so much for teaching me these things and warning me about credit cards and debt.''Lucero added, 'If you are out of control with your money and with credit cards, it can make for very tough times. And times are tough enough for young people already.'
Published on: Saturday, Aug 30, 2014 - 11:35:20 pm MDT
City/County Government
Post a Comment for "Young adults prefer plastic"