Millennials think cash will go away, but lack credit savvy
Most (82 percent) millennials believe society will eventually become cashless, even though they're the generation most likely to favor cash when traveling, according to a TD Bank Consumer Spending Index.
What's more, if their cashless payment method of the future is a credit card, that could be a problem, because millennials lack healthy credit habits. For instance, the study found that among millennials who use credit cards:
- Half use 31–90 percent of their credit limit, surpassing the recommended rate of 30 percent or less.
- 32 percent don't pay their cards off in full each month, which is costly and can damage credit health.
- Despite being more likely than other generations to pay for a group outing in order to earn rewards, 30 percent of millennials have let their credit card rewards expire, compared with 14 percent of Gen X-ers and 9 percent of boomers.
- A quarter of millennials do not know their credit score.
"The data is a bit concerning," Mike Kinane, head of U.S. bankcard at TD Bank, said in a press release. "We're relying less and less on cash, and while credit cards may not be a millennial's payment method of choice, it's still critical that they develop financial knowledge and habits to properly position themselves for sound credit health down the road."