opinion
Another surprising statistic ECB
found is that almost 80% of
millennials’ transactions are done
in cash, which is higher than the
European average of 78.8%
the opposite? A wealth of reasons could
be provided to answer why, but three
factors ultimately played a central role:
1. The Financial Crisis
2. Student Loans/Debt
3. Lifestyle & Spending Habits
Millennials lived through the financial
crisis of 2008 and witnessed the effects
of out of control debt. Most of the older
40 KIOSK solutions
portion of the group recently graduated
or were set to graduate into an economy
with low job availability and were already
burdened with student loan debt.
According to Federal Reserve and Student
Loan Hero, the current total student loan
amount in the US is $1.4 Trillion spread
out among 44 million of American student
loans, which means that every borrower
has to pay $351 every month.
Millennials were faced with the
decision to remain debt-conscious in
their spending habits while seeking
employment or going back to school
and increasing their student loan debt.
Coupled with these experiences, many
understood lifestyle changes would need
to be made and spending habits would
need to be adjusted. By having fewer
credit cards and more cash on hand, it’s
easier to only spend the cash available,
instead of relying on credit to make
purchases.