The youngest people use cards in order to not affect the availability of their cash, the older ones use it as short or medium term financing.
There are many things that change with age or with the generation to which we belong. One of them is the use we give to credit cards.
Young adults and adults per se (from 36 to 45 years old and from 46 to 55) believe that credit cards serve for emergencies and unforeseen events; older millennials (aged 26 to 35) consider that it is to build credit record (54%), and young millennials (18 to 25) say it is to enjoy offers and benefits, according to the study of Hábitos Financieros en Línea 2017 (Financial Habits in Line 2017) of American Express and Google, made by TNS.
After seeing the uses described above, we can conclude that the youngest use credit cards “So as not to affect the availability of cash during the month”, while the older ones use them as “Short or medium term financing”.
Regardless of age, what they consume the most with their online credit card is: streaming video and music, technology and travel.
I would like to see a much broader study about card spending habits, because although there may be a theory that the younger we are the wilder we are with money, I also believe that it depends on our financial education.
what is the real use of a credit card?
For me, all the answers are correct.
Credit cards are tools that serve several purposes, depending on the needs of the person who has it. And in fact, the answer you give to the “what’s the use” question will define-or should define-your choice to a larger degree.
Why? Easy, because if it’s a card for emergencies only, it should cost you as little as possible; if it is a card to build credit record it must have low commissions and little credit limit (since it is to learn) and if it is to obtain benefits and rewards, it must be aligned with your shopping habits, so you get the most out of it.
Credit cards are useful, as long as we have clear how they work and the use we want to give them.
Sourc: Forbes.com.mx