According to the FDIC (Federal Deposit Insurance Corporation), in 2017, there were 4,909 FDIC-insured commercial banks in the United States. With so many banks on offer, it’s only normal for the US residents to have a wealth of banking options to chose from. So, how to pick which credit card you want to use? Banks offer perks to those opening credit card accounts, but which bonus suits you best? Do you want a cash back option or a zero-percent interest? Or maybe, you’ll do best with a signup bonus?
Millennials represent the generation of people born in the years from the early 1980s to mid-1990s (mostly aged 23–38). Over one-third of adult Americans say that a cash back option is the most attractive one. However, millennials disagree. Most of them get more excited by signup bonuses — especially those that come in the shape of travel credit.
This goes in line with their lifestyle habits, as just under 60% of millennials went on a trip which included a hotel stay or a flight. With lifestyle which consists of vacations and traveling around the world, it’s only logical for millennials to choose credit card perks related to travel as they can get the most out of them.
Generation Y (another name for millennials) is generally more conservative than their predecessors. Research shows that millennials are willing to take less risk in their lives in many different aspects of life, from using contraceptives to how they handle their finances. Only around a third of all millennials have a credit card, with the majority of them opting for debit cards, as they’re willing to spend only what they actually own. While this may be commendable, it can actually be detrimental in the long run. A lot of people who have never taken on debt, rather surprisingly, have lower credit scores.
Another difference between millennials and the generation before them is how much they value money. Namely, on average, Americans believe $19,800 is the amount of money needed to change their lives. The average millennial, on the other hand, thinks as low as $5,000 is a life-changing value. While others would put that money into a savings account, millennials generally prioritize paying off medical bills and student loans.