Millennials are Killing Credit Cards

That’s right, I said it. Millennials are killing credit cards. What? Killing relationships, napkins, gold, beer, the housing market, diamonds, banks, Harley Davidson, department stores, and Applebee’s wasn’t enough for you? You had to go and kill credit cards too?! You monsters!

Seriously, though, these failing industries aren’t being killed by millennials. They aren’t changing with the times and their profits are suffering because it.

Not our fault.

Voluntarily putting yourself thousands of dollars in debt when our economy is on shaky ground isn’t just silly, it’s downright irresponsible.

However, there are fewer and fewer millennials using credit cards and it’s not too surprising. In fact, studies are showing the lowest number of card holders since 1989. 1989! The original Batman came out in 1989. George Bush Sr. was President and Will Smith was still a rapper.

It doesn’t help that the Great Recession happened almost ten years ago and we’re still feeling its effects. It’s also possible that we’re moving towards another one, which is just great.

Voluntarily putting yourself thousands of dollars in debt when our economy is on shaky ground isn’t just silly, it’s downright irresponsible.

Credit cards are seeing less use for more reasons than an unstable economy.

1. Living at home after college

The last thing that recent college graduates want to do is to go back home to live with dear old Mom and Dad. But that isn’t stopping nearly 40% of graduates from doing it.

The ever increasing cost of the housing market is definitely to blame here. Most desirable jobs are concentrated in major cities, but living there is completely out of the question for recent graduates.

Student loans, your car loan, savings, and all the other bills on your plate won’t leave much of your paycheck for you to afford a modest apartment in downtown (insert major city name here). Especially one in a good part of the city.

So it’s no surprise that Millennials are living at home after college and we don’t have a need to use a credit card to help with their monthly bills or discretionary spending. We can’t afford it!

2. Crippling student loan debt

If you went to college, you student loans that need to be paid off. The average is $30,000, but how much you have depends on your major.

For a lot of recent graduates, their monthly student loan repayment is basically the same as a car payment. Most adults are living paycheck to paycheck and wouldn’t be able to afford repaying that debt, much less someone fresh out of college.

Using a credit card is taking on another debt when the ones you have are already taxing enough. Most Millennials see that for what it is. It’s irresponsible.

3. Living more responsibly

The media, and some parents, will tell you that Millennials are spoiled brats that waste their money on frivolous things, but we’re far more money-conscious than Gen-X.

Most of us grew up smack dab in the middle of the Great Recession or just after it so we remember how everything changed in the late 2000s. We remember the news and reports of mass foreclosures on homes, small businesses going under, and everyone losing a ton of money, from the part time investor to major corporations.

We know how quickly things can change.

Because of this, we’re more likely to save money than we are to spend it. We know that it’s better to have money and not need it than need it and not have it. That’s why 75% of Millennials make and stick to a budget as opposed to just 64% of Gen-X’ers. And also why 40% of Millennials are actively saving for retirement compared to just 21% of Gen-X’ers.

We live within our means so we can be ready for whatever curveball life throws our way. Credit cards undermine that.

4. Focus on the long term

Beyond living responsibly, Millennials are paying more attention than ever to what’s going on in the world. We know that Social Security won’t be what it has been by the time we get to retirement age and the same thing goes for Medicare / Medicaid.

Millennials are investing more and taking jobs with companies that contribute more to their 401k over those that don’t.

Our quality of life will depend on how well we saved which is why we’re focusing on the long game. Credit cards are the short game and a losing bet.