• About
  • $40K Challenge
  • Aunt Doris
  • Grandfather Says
  • Privacy
  • Archives
  • Disclaimer

Len Penzo dot Com

The offbeat personal finance blog for responsible people.

bullion star banner

Millennials Aren’t Using Credit Cards, But Experts Think They Should

By Corazon Gritar

millennials aren't using credit cardsSeven in ten Americans have at least a single credit card in their name. Often times they have more, but most have at least one. However, this doesn’t apply to all generations equally, and once again millennials are the exception to the rule; millennials aren’t using credit cards. Unfortunately, many financial experts worry that’s a major problem.

According to Bankrate, young people are spending more than any other generation on things like groceries and gas. This has people like Bankrate’s Chief Financial Analyst, Greg McBride, shaking their heads. He says that young people just don’t use credit cards for these things as much as they should.

“Those basic bills represent rich opportunities to earn money back, or points that can add up to cool vacations and other rewards. So millennials might seriously want to consider putting more of their everyday spending on credit cards,” Bankrate says.

The site found that millennials spend some $9568 a year on groceries and another $2796 on restaurants, more than any other generation. They also spend more on things like gas and cell phone services compared to other generations.

CNBC also reports that the best cards can save more than $1000 over a two-year period when used correctly. And, in the long run, they can even pay for themselves if they offer good benefits.

So what types of credit cards should young people consider using?

“Focus on cards that have the highest payouts in the categories where you spend the most. This is the way to maximize the return you’re getting on everyday spending,” says McBride.

However, the flip side to this argument is that there can be a risk of high-interest debt. With many young people drowning under impossible student loan debt, it’s easy to see why they are reluctant to take on more payments each month. Still, credit cards can be instrumental in helping young people build up their credit scores.

Simply put, a credit card can be a good tool if used wisely. If someone is making bad financial decisions, it doesn’t matter whether they choose to use paper or plastic.

Photo Credit: stock photo

10 Comments May 6, 2025

Question of the Week

Do you plan on taking a summer vacation this year?
VoteResults

Comments

  1. 1

    Patrick says

    Not 1k a month, 1k over two years.

    Reply
    • 2

      Len Penzo says

      Good catch, Patrick! Corrected.

      Reply
  2. 3

    RD Blakeslee says

    Very good advice in this article!

    “Using Wisely” sometimes means planning ahead.

    Our family has alot of birthdays coming up this quarter and we traditionally take each other out to dinner. I pay for them all on my Chase Freedom C.C. which is paying 5% cash back July – Sept. this year. My Family members whose turn it is to treat, then pay me the discounted amount and everybody gets a 5% discount on their meals.

    Reply
    • 4

      Karen Kinnane says

      Clever! And if by chance you are an airline mileage junkie, and can talk the group into dinner at a restaurant in your airlines dining club, you can get an extra five miles per dollar spent (in addition to the one mile per dollar spent to pay the bill) as a bonus.

      Reply
      • 5

        Len Penzo says

        Double clever!

        Reply
  3. 6

    Cory @ Growing Dollars from Cents.com says

    There are so many rewards cards out there that offer bonuses just for signing up.

    Simple thing like purchasing gas, buying food or shopping online could reward you with cash back and other rewards like airline miles.

    The important part to note is credit card interest rates are high but once you pay off what you owe before that pesky interest rate kicks in you’ll be good.

    Reply
  4. 7

    RD Blakeslee says

    For me, the nominal interest rate and list of penalties for a C.C. are immaterial. The entire balance owed is always paid off on each payment due date, by automatic billing to my bank account.

    Reply
    • 8

      Len Penzo says

      Me too, Dave. I’ve never paid a dime of interest on credit cards.

      Reply
  5. 9

    Della Humphrey says

    Len, you got me started with Apmex. Can you get me started with a good credit card?

    Reply
  6. 10

    Roger says

    For young people, who often have no experience with finance and personal discipline, the risk of the freedoms offered by a pay later but get it now mindset is a big risk. Credit card companies don’t offer points and incentives to give away money. One wrong move, one late payment, lose a job, unexpected expense comes up and now the trap slams shut. Been there, done that, never again.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Copyright © 2025 Len Penzo dot Com · All Rights Reserved · Designed by Nuts and Bolts Media

© Len Penzo dot Com 2008–2025