Spending habits of differing generations
The days of spending the ‘weekly housekeeping' is soon to be a thing of the past according to new research from Clydesdale and Yorkshire Banks as a gulf emerges in the spending habits of differing generations.
Clearly highlighting the generational divide, 16-24 year olds are happier to use their debit card to pay for smaller amounts with 12% stating they'd use a card for a transaction of less than £1 compared to just 2% of those aged 55 and over.
Almost all (93%) of the younger people surveyed would use their card for transactions up to £5 compared to just 67% of those in the older generation.
This view also spills over into physically carrying cash, with 10% of 16-24 year olds claiming they never carry cash, compared to just 4% of those aged over 55.
More than half (53%) of those aged 55 and over carry more than £20 in cash compared to just 21% of those in the younger age group. And none of the younger generation carried more than £50 compared to 8% of the older age group.
"Not only does this latest research show the differing generational attitudes towards spending, but it also demonstrates the association the different generations have towards money, said leading psychologist Dr Jane McCartney.
"For a whole younger generation putting even small amounts ‘on the card' is the norm, but this can feed in to their general attitude regarding money and finances. The pleasure comes now, the reality of the statement, comes later. Whereas the older generation are more likely to have had, and continue to have, more of an actual relationship with cash. They are used to holding it, using it, having their whole weekly worth - wages - represented by it, and they generally know how much they have in their wallet to spend.
"Psychological research has shown that when people only have cash to spend they do spend less - they know how much they have spent and what they have remaining. Whereas people just using cards will both simultaneously underestimate how much they have spent, and overestimate what they have remaining."
Andrew Pearce, Director of Retail Banking at Clydesdale and Yorkshire Banks, said: "It is interesting to see the difference in the attitudes of the younger and older generations when it comes to spending.
"Having grown up in times when buying with plastic rather than cash is simply ‘the norm' the younger generation have no issue with making any purchase, no matter how small, with their card and are less concerned about carrying cash. However, no matter how you choose to purchase items, it's important to keep a track of what you're spending.
"At Clydesdale and Yorkshire Banks we have a range of competitive products to suit the varying needs of our customers old and young to help them manage their money in the way which suits their own individual requirements."
For further information on Clydesdale and Yorkshire Banks' ranges of competitive products visit cbonline.co.uk or ybonline.co.uk.