Take a look at your family tree. There’s a good chance that your great grandparents had six to seven children, your grandparents had four to five children, and your parents had two to three children. And chances are, you’re thinking about having one to two children. While this isn’t always the case, there are certain patterns emerging in our society. More specifically, people have fewer children, and they’re doing it later on in life. In the 1980s, the average age to have a baby was 24. Today, we’ve seen that average increase to 29.9 years and many millennials are stating that they wish to wait even longer.
But did you ever stop to wonder why this is the case? This new trend that we are seeing is partially due to the fact that women are now spending more time on their education than ever before, but it’s also partially due to the fact that millennials are trying to avoid debt traps. In other words, they want to be more financially stable before they have a family.
But aside from leaving family life until later in life, what other methods are millennials using to avoid falling into debt?
- They’re spending their money appropriately
This generation of millennials is extremely conscious about spending their money. Yes, they are happy to open their pocketbook to new experiences, but few are spending their money on material things or things that don’t last. Fewer millennials, for example, are spending their money on expensive clothing, cigarettes, and alcohol. Rather, they are investing money into things like transportation, groceries, and private health insurance. In other words, millennials are focusing more on the necessities in life as opposed to the things they “want.”
- Millennials are saving more money and managing their finances more closely
This may come as a surprise, but did you know that only 66% of older generations budget their finances? When it comes to millennials, this percentage increases to 80%. That’s right, over 80% of millennials track their finances, and most of them monitor it very closely using new technology that helps them to track their spending.
- Millennials are using Buy now/Pay later options
Buy now/Pay later options are exactly what they sound like. If you need a new piece of furniture, you can get it now and pay for it later. This allows millennials to manage their budgets so that they don’t have to pay off multiple major debts all at the same time.
- Millennials are turning down credit cards
According to statistics, over 66% of older generations own and use their credit cards on a regular basis. This statistic is in stark comparison to that of millennials, wherein only 41% own a credit card. As we all know, credit cards are huge debt traps, so by turning them down, millennials are doing themselves a huge favor.
Finally, when millennials do find themselves in need of money, they are turning to different sourcing options. Rather than turning to a credit card, Millennials are using programs like OpenCashAdvance. Programs like these help to prevent millennials from falling into debt traps because they don’t allow debt to build as credit cards do.
Rather, programs like Open Cash allow you to obtain small, affordable financial loans. Rather than being paid back in installations, these programs are paid back in full on an agreed-upon date. This may prevent millennials from borrowing more than they can afford to pay back. In other words, programs like Open Cash focus on short-term loans as opposed to long-term loans that can create debt traps. Whenever possible, we should all be taking lessons from millennials. Avoiding debt traps is the best way to prevent financial stress, and it seems that millennials are doing it right.