Survey Shows Millennials Are Surprisingly Responsible When It Comes To Credit
Young people often get a bad reputation for being irresponsible with money, but a recent survey shows that in fact, today’s young folks may actually be savvier and more responsible with credit than their parents.
The survey, conducted by Varo Money, Inc., a digital banking app geared toward Millennials, revealed some surprising facts about how the younger generation approaches financial management. For one thing, they don’t make budgets. Calling them “hands-off” consumers, Varo Money founder and CEO Colin Walsh explained that Millennials want to pay down debt, save money automatically, and not have to “track every penny in a spreadsheet.” The Varo Money app is designed to help people stay on top of their finances while maintaining that hands-off stance.
“It’s totally possible to get ahead financially as a hands-off person – and that’s why we founded Varo,” said Walsh.
Millennials and credit
While 92% of Millennials have at least one credit card, many of them have secured credit cards, rather than traditional, unsecured ones. For folks with limited credit, or no credit history, getting a secured credit card is a good way to begin to build a credit history and learn to use credit responsibly. Secured cards have proven to be increasingly popular with young people over the past few years.
Key findings of the Varo survey
The survey, which looked at the habits of 287 Millennials and asked them about their financial hopes, fears, and routines, found the following:
• The top three goals for people this age were following their passions (66%), travelling the world (42%) and getting married (40%)
• Fifty-two percent of survey respondents had to borrow money or dip into their savings within the last three months, to see them through to their next paycheck
• Eighty percent of respondents reported being actively worried about the state of their finances
• Most of them don’t make spreadsheets to track their funds – 78% said they “never” do, and 35% said they’d “rather vomit” than make a spreadsheet
• Fifty-eight percent of them don’t plan what they’ll spend in the next month, and 36% said they never or rarely look over what they spent in the past month
• Eighty percent of those surveyed check their bank balance at least once a week, and 69% spend money using their debit card almost all of the time