Teens Cautious About Using Credit Cards
Today’s teenagers do not want to follow in their parents’ footsteps, at least not when it comes to debt. They are a frugal generation, and seem to have learned from what happened to their parents during the financial crisis.
According to a study by the McGraw Hill Federal Credit Union, only one out of 20 teens is using a credit card. Of those, 69% say they pay the balance in full each month. Less than 2% make less than the minimum payment or go over their credit limit.
The teens in the survey prefer to use cash for their purchases. Nearly 60% of the teens use cash as their primary payment method. Debit cards were preferred by 36% of the teens.
This frugality is affecting their choice of colleges and how to pay for their eduction. Over half said tuition costs would factor heavily into their college selection. Nearly 70% will have to pay for a portion of the cost of college.
The credit union surveyed 305 teens, ages 17 and 18.