Facebook Shows How Millennials Dislike Debt, Avoid Credit Cards

Facebook Shows How Millennials Dislike Debt, Avoid Credit Cards

January 27, 2016         Written By John H. Oldshue

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.

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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.

The information contained within this article was accurate as of January 27, 2016. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About John H. Oldshue

John Oldshue is the creator of LowCards.com. He worked for over 15 years in television and won an Emmy award for his reporting. He covers credit card rate issues for LowCards.com.
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