People belonging to two different age groups can seldom agree on anything, let alone financial matters. With varying attitudes and behaviours towards money and finances, the question here is – who can actually handle credit cards better? Millennials or Gen Xers?

Let us find out today Who is better at handling credit cards…’

Handling Credit Cards

Using credit cards as a primary form of the payment absolutely has its benefits, as long as the card user is responsible when it comes to managing their credit. Millennials and Gen Xers represent the generational segments most likely to open new personal credit cards in the next 12 months.  While it may be surprising to see that Generation X is the age group with the most credit card dependency, they also have the proper cash flow and financial discipline to support the behaviour, getting the most benefit out of credit card perks and rewards. Millennials may still be burdened by other economic factors such as student debt and a historically weak job market, so their lower reliance on credit cards could be seen as a positive indicator of their fiscal responsibility. 

About Millennials

  • Millennials are 18 – 40 years old who are born between the early 1980s and 2000
  • They form 46% of the workforce
  • Wealth is the primary life goal for about 80% of millennials
  • More than 90% of millennials believe in making their own financial decisions

About Gen X

  • 40 – 60 years old who are born between 1961 and 1981 belong to Gen X
  • They are driven by security and stability in life
  • They usually stay away from taking loans and paying interests

How do millennials and Gen X handle credit cards?

Here are a few criteria in which millennials and Gen Xers differ from each other in terms of their financial behaviour:

  • Financial goals

Millennials generally plan on buying a house or car, or travelling overseas. They look for the small luxuries in life. On the other hand, Gen Xers are more tilted towards family stability and savings. They too, however, have their eyes on buying a house and a car.

  • Motto towards reaching their goals

Millennials look at their financial goals with the “Carpe Diem” attitude. They easily get credit and loan EMIs and tick their goals off the list. Contradictorily, those belonging to Gen X believe that the slow and steady wins the race. They are of the opinion that saving is the key and that financial risks are unnecessary and should be avoided.

  • Credit friendliness

While the credit friendliness of millennials is quite high, that is not the case with the people of Gen X. 

  • Importance of credit scores

When it comes to credit scores, millennials have had enough material to get educated about it beforehand. However, Gen Xers ended up finding out about credit scores as it came into the market. This significantly changes their outlook towards the same.

  • Debt management

Unlike Gen Xers who are well-planned and scheduled when it comes to debt management, millennials are known for managing their debts in an erratic and quick manner.  

  • Rewards and cashback

Each generation is motivated by rewards differently. 58% of Millennials and 62% of Gen Xers prefer credit cards that offer cash-back rewards to account holders. 

As millennials begin to use credit cards more, it is important for them to know credit cards can be used to their advantage. When used properly, credit cards can help improve credit scores and can accumulate valuable rewards consumers can use for travel and other purchases. For Gen Xers, the data does suggest the generation was negatively impacted by the economic bubble, perhaps more so than even millennials. However, members of Generation X still have plenty of time and working years to get back on track and improve their spending habits. In which age group do you belong? Let us know and also tell us who you think is better at handling credit cards – millennials or Gen Xers!