Even though more and more people ditches cash in favor of credit card, there’s a special category which still doesn’t consider them very useful. We’re talking about millenials, who, according to a report from CNBC, are spending more than other generations on everyday purchases, as well as dining out.
Chief financial analyst Greg McBride says that young people are actually missing out by not using credit cards in order to make purchases, as well as travel rewards credit cards or cash back credit cards.
Getting money back is always great news
Basically, they aren’t able to earn money back or points, which can be later used to enjoy cool vacations or any other rewards. Therefore, millenials should really consider putting more of the amounts they spend daily on credit cards.
“Focus on cards that have the highest payouts in the categories where you spend the most. This is the way to maximize the return you’re getting on everyday spending,” says the same Greg McBride.
This category of potential credit card users actually spends almost $10,000 per year on groceries, as well as an additional $2,800 on restaurants, surpassing any other generation. They also devote more funds to cellphone services and gas, while older consumers, on the other side, spend more on travel and television.
Credit cards are not the answer, though!
At least this is what a big category of people thinks. Sure, if you follow all the rules carefully, you can even save up to $1,000 or more per month, which could be great for millenials, not to mention that they can also help you build credit.
Still, let’s not forget that credit cards can also lead to big amounts of high-interest debt, but as long as you use them properly and responsibly, they can turn up to be pretty useful tools! In the end, it’s all up to you when it comes to handling your money and expenses…
