Millennials may avoid credit in efforts to be financially responsible
While it's commonly assumed young people tend to spend money they don't have, research shows millennials are actually quite savvy when it comes to saving for the future and budgeting expenses for each month. Because they're conscious of debt and excessive spending, many individuals in this demographic may choose to use more traditional forms of payment, rather than credit cards, making it important for retailers to respond appropriately and ensure they have access to an efficient cash and check scanner.
According to a study from market research firm Lab42, 94 percent of millennials consider themselves fiscally responsible and 89 percent create a budget each month. While 60 percent have debt, typically from credit cards, student loans and automotive purchases, 18 percent always put their extra money toward paying off these extra expenses.
In an effort to avoid accumulating even more debt, more millennials may choose to complete transactions with forms of payment that won't add to their loan burdens and accumulate more interest. While checks and cash may not be as technologically advanced for this generation, they may appreciate the ease and lower costs associated with making a payment immediately and not worrying about affording it later on. This debt conscious mindset may encourage more businesses catering to millennials to invest in cash and check processing machines that can efficiently handle more transactions.
June 7, 2013