Question: What Are The Generational Differences in Credit Behaviors?
Nice infographic from TransUnion showing generational differences in their credit behaviors:
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A few questions for your students to ponder (there always has to be:)
- Which generation has the lowest credit ratings? Why do you think this is the case?
- Why do you think credit utilization is an important factor in considering how creditworthy a borrower might be? How are millenials doing in this category?
- What are millenials most often using credit for (auto, credit card or mortgage)?
- What trends to you see in moving from one generation to the next when it comes to credit? How would you explain this?
- What steps can millenials take so they are not categorized as “Subprime?”
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Check out the NGPF Activity: Researching College Student Credit Card Usage
About the Author
Tim Ranzetta
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.
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