The kids are not all right

If young adults are overindulging, as a study this week suggests, it probably isn’t because they are flush with cash.

Youth unemployment has remained stubbornly high for the last three years at around 14% while the average student debt has ballooned to an average of $27,000.

Yet American Express suggests that Gen Y, who it describes as those born after 1983, has boosted fashion spending by 33% between 2009 and 2011, travel spending by 74%, and fine dining spending by 102%.

The same week, TD Canada Trust released a survey showing that more than half of those between 18 and 34 are carrying credit card balances. About 40% are just making their minimum monthly payment.

‘Be wary of permanently carrying a balance, having maxed out your limit and being unable to pay it back’

“Using your first credit card responsibly is a smart way to establish a strong credit rating and help set yourself up for an attractive interest rate when you apply for your first car loan or mortgage,” said Stephen Menon, associate vice-president of credit cards at TD Canada Trust. read full article

This article is intended for educational purposes only and does not constitute personalized advice. The strategies and information discussed may not be suitable for your individual situation or may not be up-to-date and current. Please seek guidance from a licensed professional for advice specific to your circumstances.

OFP_logo

Blog Contributors

Recent Posts

Subscribe to our newsletter

Want to stay up to date with our most recents articles?
Sign up below to receive emails whenever we have a new story!