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(Forbes)   Millennials are using cash far more often than credit cards in the wake of recent security breaches and the realization that they don't make enough money to have credit cards in the first place   (forbes.com) divider line 35
    More: Obvious, security breaches, Target, credit cards, digital native  
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2150 clicks; posted to Main » on 18 Mar 2014 at 7:05 AM (39 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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View Voting Results: Smartest and Funniest

2014-03-18 08:00:57 AM  
2 votes:
Millennial articles: unfounded generalized click bait.

/won't carry cash
2014-03-18 07:42:06 AM  
2 votes:

reprobate1125: Cerebral Ballsy: True, true.  Also, if you don't buy stuff on credit, you don't need to worry about your credit rating.

Not quite true.  Whether you agree with it or not rates like homeowner's insurance and car insurance are often partially tied to your credit.

Also, many employers check credit before hiring...even if your job has nothing to do with money. They use it to see if you are a person of your word (by keeping your financial obligations).


As someone who has worked for a bank, as well as a large insurance underwriter, I can tell you that what you stated is pretty much false.

I understand a lot of people don't know how insurance companies make money, but your ability to make payments is not something that actuaries concern themselves with.

As for the credit check thing... I am a hiring manager (and have been for years) including at some fortune 100 companies. I've actually never seen HR perform a credit check on anyone, including people who work at financial institutions (like me). Criminal check, absolutely yes.

I think a lot of this is just old wives tales b.s. and fud, probably peddled by people who also peddle credit. There's no virtue attached to being in debt at usury rates regardless of what anyone tries to tell you and the only type of debt worth taking on is one that has a ROI greater than your financing, like for instance - buying a home or starting a business or buying stocks on a line of credit, all of which are financed at rates that tend to be reasonable as opposed to credit cards.

Hell, I actually do not have a credit card and I've worked in finance most my adult life. Very few of my contemporaries who have them ever carry a balance on them and use them primarily for travel and renting cars.

Only poor people need to use credit cards. Think about that for a second.
2014-03-18 07:40:10 AM  
2 votes:
If you have a modicum of self-control then using credit cards is far superior to using cash:

1. Nobody is forcing you to buy crap you don't need.
2. Credit card companies pay rewards for using their cards, anywhere from 1% - 5% depending on the purchase.
3. It helps your credit rating (useful for qualifying for a home loan and getting better interest rates).
4. Pay it off every month and your cash can sit in your bank earning some interest and there is no cost to using the card
5. You are not responsible for fraudulent charges (good luck getting your cash back if stolen).
6. Most credit card companies offer extended warranties on purchases made with their cards.
7. Impossible to rent a car without a credit card
8. If you have an emergency and don't have enough cash to cover your expenses, you can still buy food.
9. Buying stuff online is extremely difficult without a credit card, and you can find most things cheaper online (saving you more money).

There are probably many other reasons.  It all boils down to self-control and responsibility.
2014-03-18 07:36:56 AM  
2 votes:
No mention of the CARD Act of 2009.  Basically, the card issuers aren't allowed to shove $3000-limit cards to 18-year-olds with no verifiable income (and this free T-Shirt!), like they did when I was a college freshman in the 90s.   While a lot of kids got burned with CC debts, it was nice that I had many years of credit history by the time I was out of school.

Debit cards really weren't a common thing in the mid-90s.  Now... it's what most 20-somethings have (because they don't get credit).

Given a choice between cash and my rewards credit cards, I'll pull out the latter, even at Target.  Given a choice between cash and a no-rewards directly-tied-to-my-bank-account debit card, I'd pick the former.
2014-03-18 07:35:58 AM  
2 votes:

Cerebral Ballsy: The Muthaship: Good.

Grown ups carry cash.

I'm proud of you.

I have a coworker trying to date me who doesn't use cash, even small amounts.

/I won't even be your friend if you're one of those annoying-ass people


That's a super cool thing to be really upset about.

Personally, I use a card for everything.  Even super-small purchases.  Everything auto-pays onto the card, including utilities where possible.

At the end of the month, I have an accurate history of exactly where my money was spent and I pay off the card.

I have an exact history down to the penny of my spending habits, down to how often I grab fast food at lunch or how much I've spent on shoes in the last 5 years.  It definitely helps when trying to find places where I could slim down the budget instead of looking at an empty wallet at the end of the week and trying to remember where it all disappeared to or sorting through a handful of crumpled receipts.

I've never been in debt, other than my mortgage.  I've never even take a car loan.  But because of my solid history with my card, I was in the top-tier for credit rating when I applied for that mortgage.

I have never in my life carried a balance over on my card or paid a single cent in interest on those charges.

tl;dr You're ridiculous for judging someone using a card without knowing the details.

/born in 82.  Technically a millennial, I guess.
2014-03-18 07:18:28 AM  
2 votes:
Boomer, here.  (Hold your fire!)  I fell into a deep financial hole a few years back.  Had plenty of help with the digging, but had to crawl out on my own.  I decided that the first order of business was to retire all credit card debts and stick with the pay-as-you-go plan.  I made it, but discovered that when you don't buy stuff on credit, your credit ratings suffer!
2014-03-18 07:13:08 AM  
2 votes:

macross87: Euthanizing BabyBoomers helps to free up that medical burden too


We should have aborted you
2014-03-19 05:15:31 PM  
1 votes:

Geoff Peterson: You boys sound like you don't have credit cards. I wonder why.


You sound like somebody who is judgmental, dismissive and assumptive of others relative to a very narrow and convneinet view of the world that you think gives you pissing from a great height priviliges.  See?  I told you I know people like you.   :  )  And that's a wrap, Lord Sniffington.  Word to your kneepads.  *click*
2014-03-18 03:33:34 PM  
1 votes:

themindiswatching: shortymac: IMHO, I wouldn't be surprised if this "trend" is the result of millennial doing under-the-table jobs for extra cash.

Having one job just insist cutting it anymore, you need side income to survive with stagnant wages and rising costs. Minimum wage is so low it almost isn't worth it to get a night-time or weekend job. Under the table is really your only option.

/Need to start something, immigration and a layoff made me so broke
//Slowly climbing back to the top

Makes you wonder when sh*t is actually going to hit the fan.

/I expected OWS to stay in the news longer than it did and change more than it did.


Quite frankly, I think it's changing but it's going to be slowwwwwwww.  You can't exactly protest if you are too terrified of being fired from your McJob to take a few days off.

The problem is going to be that the republican party is still being run by older boomers who are terrified of ANY change, even if it screws them over. The millennials are roughly the same size of the boomers, so it's going to get politically interesting in the next 2 decades.

However, a lot of boomers didn't save enough for retirement and/or got screwed with the 2008 crash. A lot of their "wealth" is tied up in their houses and if their kids don't have good enough jobs to buy a house, both sides are going to get screwed. You're going to see the return of multi-generational families.

If incomes don't start rising soon, EVERYONE is going to get screwed. Companies are resisting this because they are focused on the short-term, in the long-term companies are shooting themselves in the foot if they don't have enough money to buy your products. They should remember the lesson Henry Ford taught us.
2014-03-18 03:26:14 PM  
1 votes:

RockofAges: bunner: RockofAges: bunner: By the way, as far as functional societies go, the guy selling "F*cking old people f*cking f*cked everything up and sh*, dude!" doesn't exactly look look like Solutions Man©

Hand over the reigns and see how it's done. Until then, grip them with your wrinkled fingers until your surburban illusion collapses. You guys farked it up. Granddad's generation didn't.

It's spelled "reins" and I have some rather unpleasant news to impart.  There are no reins.  And if there were, they sure as hell wouldn't be in the hands of any given group because of what year they were born.  Time Life really *isn't* the most accurate historical reference.

Yeah, too much wine last night, speak and spell. And yes, generations hold power due to their age. I'm pretty sure despite your protestations that there are very few Millenials making policy, or at the "reins" of power.

Look man, it's nothing against you personally. Just like I said about my own folks. Exceptions to the rule. But the rule is -- the boomers as a generation were handed everything. Economic prosperity, free love, and a fake hippy movement (keep in mind that Gen X / Millenials -- 80s kids -- are the ones that, ironically enough are going to legalize the demon weed) and still sold out your own countrymen AND your children.

Yeah, the "greatest generation" didn't do that. They fought a goddamn war against Hitler and then passed a bright torch to your generation, where it was smothered and sold off to China and some guys in suits for the promise of "security". It is awfully nice in suburbia. Quiet. That sort of thing.


Millennials are 80's kids now?
2014-03-18 10:25:29 AM  
1 votes:

GBB: My issue was that I had absolutely no guidance as to how to handle finances.


I hate this excuse. I had no guidance, either, but I managed to not run up the credit cards. I've had at least one card since I was a teenager and only ever carried a balance when I had an introductory 0% offer. What magic handling did this require? Spending < Earning. The alligator eats the big one. That's it! That's everything.

I understand when people get in trouble because they lost their job, took a pay cut, had unexpected expenses, or some other hardship, but running up the bill because you don't understand how a less than sign works doesn't happen due to lack of guidance. It happens because you're stupid.
GBB
2014-03-18 09:49:51 AM  
1 votes:

Yankees Team Gynecologist: Serious, nonjudgmental question for those out there who have ever actually borrowed on a credit card (i.e., did not pay it off every month): why did you do it? Did you lack shopping discipline at the time? Did you simply not understand how the card worked? Were you in a bind and needed the money?

To many it's a no-brainer to use a card in a disciplined manner and pay it off every month so that you build credit, collect rewards, and have fraud protection without paying any interest or fees. But enough people refute this notion such that it must not be as simple as it sounds. Some CSBs might help bridge the gap of understanding.


Well, here's a serious answer.  When I headed off to college, my father got me my own credit card with his bank.  It was my own account that was secured to his.  Kind of like a co-signer; if I defaulted, he was responsible.  Limit was $500 + annual fee.  I didn't use it all that much, because it had such a low limit.  I had my own job, but up to this point, never had my own expenses.  He paid for my housing while I was in college, so I only had to worry about utilities.

On campus, every semester, they would have events and the ubiquitous credit card sign-up tables.  I got myself a Discover card and used it sparingly.  Then the offers started pouring in.  I ended up with a total of 4 accounts, and I started using them.  The minimum payments seemed so reasonable!   I started off paying more than the minimum, but less than the balance.  Soon, I had hundreds on credit.  Then the limit increases came in, and the rate reductions.  It was awesome!   I spent more and carried higher and higher balances.   I got myself one of the first Palm Pilots on credit.  It was fantastic.  The beauty was, I got stuff I wanted without having to pay for it right away.  Even better was that I had my own money that I could use with enough left over to pay the minimum balance as well as the utilities I shared with 3 others at school.  But, college didn't go so well for me and I was academically suspended for 2 semesters.  Didn't go back for several years.  I pretty much had no discipline.

Eventually, I started looking into how to make these credit cards go away and ended up only caring about making the payments smaller.  Consolidation was the answer.  So, I ended up transferring balances and making 1 small payment.  But, look at all that unused credit.  I put an expensive cruise vacation on credit.  It was well deserved.   And a new laptop.  I still had no discipline.

Would you care to guess the balance when it all came crashing down??

Sixteen grand.... on a fifteen grand limit.    And I was in default.

This was also after I cleared out a $5K IRA that was gifted to me at my high school graduation.  That sixteen grand was consolidated to one account and put on internal collections.  The credit card company worked with me and refunded a lot of racked up fees, closed the account to future purchases, and reduced the interest quite a bit.  I paid it off in 4 years and never carried a balance with any card ever again.  I went back to college and got a BA in accounting.  I started developing my own discipline.


My issue was that I had absolutely no guidance as to how to handle finances.  I thought I could deal with it on my own.  I never asked for help.

I now have excellent credit and decent savings going.  And I have much more discipline.
2014-03-18 09:31:48 AM  
1 votes:
If America were civilized, all restaurants would automatically split all checks n-ways.  It's ridiculous that restaurants in the year 2014 have  any trouble splitting checks arbitrarily.
2014-03-18 09:18:55 AM  
1 votes:

ApeShaft: Cerebral Ballsy: The Muthaship: Good.

Grown ups carry cash.

I'm proud of you.

I have a coworker trying to date me who doesn't use cash, even small amounts.

/I won't even be your friend if you're one of those annoying-ass people

Why would you want to use cash? I live in Sweden and I never use cash. It's faster, simpler and safer with card payments. At least over here.


Tips, vending machines, small businesses that only deal in cash, split restaurant checks... I am tired of the crap these men pull because they don't carry cash.

Just, no.
2014-03-18 08:37:36 AM  
1 votes:
The central reserve banking system bent this country over the sink 100 years ago and if you really wanna "make that greedy generation pay!", you're gonna need a shovel and a voodoo priestess.  Debt is the only thing we make now, kids.  And it wasn't any given generation's idea.
2014-03-18 08:25:27 AM  
1 votes:
RockofAges: 
Unfortunately for you, you are so totally wrong that anyone reading this thread will be able to discern this at a moment's notice. Swing and a miss.

Oooh, posture of authority coupled with a baseless dismissal AND an appeal to the masses in one sentence.  And on the INTERNET!  Sustained +12 damage.  I need a power up.  Hand me those reins!   *snort*  I'll bet none of this is sinking in.
2014-03-18 08:24:45 AM  
1 votes:
As evil as credit companies are, I have no sympathy for the, "I was 18 and dumb and racked up thousands of dollars in credit card debt buying shoes."
2014-03-18 08:19:50 AM  
1 votes:

RockofAges: But the rule is -- the boomers as a generation were handed everything. Economic prosperity, free love, and a fake hippy movement


I'm sorry, but your "rule" is largely prefab malarkey and pretty much the whole Time Life box set.  It is.  Why would I make that up?  I'm just trying to keep the f*cking lights on here like everybody else until somebody hands me those oft touted reins.  You really believe a bunch of spoiled kids who, 80% of which, had working class parents and lived in a GI Bill house all the sudden said "let's dress funny, pretend to reject greed and the military industrial complex turning the world into a sh*thole and then, like in 20 years, we'll take the whole thing over and do a lot of coke"?  Find me one demographic on earth other than the 1% whose con is that well thought out and I'll kiss your ass in Macy's window.  Your scapegoat is plush animal and it was made in Taiwan.
2014-03-18 08:11:08 AM  
1 votes:
P.S.  There's a very good chance that "grandpa" and "pops" got the sh*tty end of the twig, too, kids.  Step back from the tree house and look at the forest.
2014-03-18 08:09:59 AM  
1 votes:

RockofAges: bunner: By the way, as far as functional societies go, the guy selling "F*cking old people f*cking f*cked everything up and sh*, dude!" doesn't exactly look look like Solutions Man©

Hand over the reigns and see how it's done. Until then, grip them with your wrinkled fingers until your surburban illusion collapses. You guys farked it up. Granddad's generation didn't.


It's spelled "reins" and I have some rather unpleasant news to impart.  There are no reins.  And if there were, they sure as hell wouldn't be in the hands of any given group because of what year they were born.  Time Life really *isn't* the most accurate historical reference.
2014-03-18 07:54:46 AM  
1 votes:

mafiageek1980: Good on them :) Maybe we can stop biatching about them so much and praise them for the GOOD things they do?

/Born in '80
//part millennnial, part gen X, 100% Crazy!


We got burned with the recession, so a decent chunk of my generation is really hesitant to go into debt. Of course, student loans that equal about a car payment don't help either.
2014-03-18 07:54:40 AM  
1 votes:
I'm 31 and I've never owned a credit card.  I know there are advantages if you have a credit card and pay it off consistently, but I'm much more comfortable with money I spend coming directly out of my checking account.  I also don't like carrying around a lot of cash in my wallet. The only downside so far has been that when I bought my house, my dad had to cosign on the mortgage.  Six months later, I refinanced as the sole mortgagor. When I was younger, I did have a few times where I over-drafted my account and it cost me, but now I keep a substantial emergency-only padding in my account to keep that from happening.

Whatever your financial practices are, don't spend money you don't have.
2014-03-18 07:47:06 AM  
1 votes:

Cerebral Ballsy: The Muthaship: Good.

Grown ups carry cash.

I'm proud of you.

I have a coworker trying to date me who doesn't use cash, even small amounts.

/I won't even be your friend if you're one of those annoying-ass people


Why would you want to use cash? I live in Sweden and I never use cash. It's faster, simpler and safer with card payments. At least over here.
2014-03-18 07:43:13 AM  
1 votes:

HotWingConspiracy: Do you watch a lot of money rap videos or something?


Do they still make those?

I'm not against using credit cards.  I do it quite often.  But, adults should carry a reasonable amount of cash.  It has flexibility beyond any other form of payment.  My bias comes from and endless list of anecdotes involving people saying "I don't have any cash, can we split the check 14 ways and I can use 3 of my credit cards, a debit and this gift card?" when the bill arrives.  It's annoying.
2014-03-18 07:36:35 AM  
1 votes:

reprobate1125: Cerebral Ballsy: True, true.  Also, if you don't buy stuff on credit, you don't need to worry about your credit rating.

Not quite true.  Whether you agree with it or not rates like homeowner's insurance and car insurance are often partially tied to your credit.

Also, many employers check credit before hiring...even if your job has nothing to do with money. They use it to see if you are a person of your word (by keeping your financial obligations).


While I can understand a couple of jobs being interested in that sort of thing (such as in the financial or security sectors), in general the idea of needing solid financial footing just to get a job that doesn't involve flipping burgers should piss people off.  Doesn't that seem like an incredibly easy way to trap people in a vicious cycle?
2014-03-18 07:35:43 AM  
1 votes:
I have one credit card, I use it as much as I can and I keep it paid off.  I never accumulate interest charges and I reap the points benefits this card offers, I can use it online easier then hard currency or a regular bank card.  I hear people complain that they can't use a credit card because they can't mentally map the association between their checking account and their credit card balance.  They are idiots, mouth-breathing idiots.  It takes all kinds in the world I guess.  I still like to collect coins though, pennies particularly.  I keep them between my butt cheeks for a few days and then fill up those take a penny leave a penny dishes, you are welcome.

Cerebral Ballsy: True, true. Also, if you don't buy stuff on credit, you don't need to worry about your credit rating.


This cunning plan only works if you're part of the Renters and leasers for life crew!  Or your are ridiculously rich or miserly, or both.
2014-03-18 07:34:59 AM  
1 votes:

HindiDiscoMonster: If I get robbed of my cash, how do I get it back?


Life has risk.

Being a grown man isn't for everyone.
2014-03-18 07:31:02 AM  
1 votes:
"Millennials are using cash far more often than credit cards "

That's not what the article says. If this was happening or about to happen, the CC companies would be falling over themselves to implement the chip technology the rest of the planet uses because they vote for people that aren't owned by lobbyists.
2014-03-18 07:28:17 AM  
1 votes:

Cerebral Ballsy: True, true.  Also, if you don't buy stuff on credit, you don't need to worry about your credit rating.


Not quite true.  Whether you agree with it or not rates like homeowner's insurance and car insurance are often partially tied to your credit.

Also, many employers check credit before hiring...even if your job has nothing to do with money. They use it to see if you are a person of your word (by keeping your financial obligations).
2014-03-18 07:28:15 AM  
1 votes:

bunner: macross87: Euthanizing BabyBoomers helps to free up that medical burden too

Ha, that's so funny cause, like, yeah, when your society is gutted by a pack of weasels after it noticed how stupid it was to dump every single aspect of it's economy, culture and personal data into a bunch of gymnastic 1's and 0's and sh*t started falling over,  you kill all the old people, dude!  For like, success!   Our society will be roses and gold sh*tting unicorns when we kill all the old people!  Then, like, when we get old and sh*t, which, of course we won't, like, the cool young people can throw us away!  Woo.


Laughoutloud

You only say that because you're old.
2014-03-18 07:24:44 AM  
1 votes:
Isn't the millennium only 14 years old?

/I don't really understand how that whole generation naming thing works
2014-03-18 07:21:08 AM  
1 votes:

mafiageek1980: Maybe we can stop biatching about them so much and praise them for the GOOD things they do?


If you need to see the disaster to understand the risk, you're a Darwin award waiting to happen.

The ability to learn, especially from other's mistakes, makes them smarter than a Baby Boomer, so kudos there I guess.  But the lack of foresight doesn't quite make them smarter than my cat.

Well, I'll take progress where I can get it.
2014-03-18 07:09:25 AM  
1 votes:
Euthanizing BabyBoomers helps to free up that medical burden too
2014-03-18 07:07:40 AM  
1 votes:
Good on them :) Maybe we can stop biatching about them so much and praise them for the GOOD things they do?

/Born in '80
//part millennnial, part gen X, 100% Crazy!
2014-03-18 07:07:00 AM  
1 votes:
Also, those pennies really add up!
llnw.wbez.org
 
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