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