The Younger Generation Are Smart With Credit Cards

It seems that the younger generation is taking heed of the financial difficulties their parents have endured over spending unwisely on credit cards and loans. The recently highlighted UK debt mountain is also making the younger generation think about their spending habits.

Many of today’s students are more than well aware of debt as being at university or college brings with it unavoidable debt. Many students rely on loans and credit cards to get through their university years.

A survey that was carried out recently by online financial service provider Egg suggests that the younger generation is now more aware of debt and how to manage it responsibly. Their findings from the survey concluded that nearly half of all people questioned said that being at university or college had since made them look at credit cards, loans and overdrafts in a different light and around 4 in 10 people were determined to use credit wisely in the future.

Once this younger generation has graduated and find themselves a job it seems their main priority would be to tackle their debt and reduce it as much as they can before spending on luxury or unnecessary items. An attitude that had long disappeared is now making a welcomed comeback. This is not to say that the younger generation will not use credit cards or take on loans in the future, quite the contrary, they will continue to take on credit but do so wisely and thoughtfully. The younger generation is seeking more help from financial advisors about information on how to deal with their finances.

The welcoming news from this survey coincides with the recently highlighted plight for us to teach our children more about our finances. It came to light that our children didn’t know the real value of money and that we were too busy trying to make our children happy with material possessions that as well as getting into debt ourselves we were teaching our children bad spending habits. With our student generation adopting a better attitude towards finances their future children may learn to adopt a better attitude towards finances.

This new found attitude of sensible spending, whether it be using credit cards or getting a loan, by our younger counterparts can only be a good one for generations to come and in the future we may see the one trillion pounds of debt in the UK be reduced.