Facebook Shows How Millennials Dislike Debt, Avoid Credit Cards
A new study from Facebook IQ shows just how much Millennials despise debt. The assessment revealed that 43% of Millennials say paying down debt is their top financial priority, while 38% of Millennials say the same about saving for the future.
Since Millennials are hesitant about accruing debt, many of them have chosen to entirely avoid credit cards. 57% of respondents pay for transactions primarily with cash, and 25% of Millennials say having a credit card hurts their financial standings. Affluent Millennials are 2.2 times more likely to prefer paying with cash than affluent members of older generations. Almost one in three Millennials (30%) say they are unsure how credit cards could be helpful.
Most Millennials desire to have a life without debt. In fact, 46% of them say being financially successful means being debt free. Only 13% said being able to retire is a mark of financial success, and 21% said that about owning a house.
Even though Millennials show a strong aversion to credit cards and debt, many of them understand they can use credit cards as a tool to improve their future financial status. 46% of Millennials say they use credit cards to help them build credit, and 36% use them to improve their “financial flexibility.”
In terms of planning for the future, 86% of Millennials say saving money is important to them, and an equal percentage put money away every month. Reasons for savings include retirement, purchasing a home and building an emergency fund.
Facebook IQ is the branch of Facebook that offers statistical information for marketers. They reviewed the Facebook accounts of more than 70 million working-age Millennials (21-34) to determine how they feel about money management, debt, credit cards, savings and other financial responsibilities. 46% of Millennials on Facebook are considered affluent, with an income over $75,000 a year.