USA Today reports that the cash-strapped Millennial generation is using "alternative financial services" such as payday loans, check cashing services, and prepaid debit cards rather than traditional banks and financial services. Furthermore, the story says, "Nearly half of young adult households, those ages 15 to 34, are considered under-banked, according to a survey by the Federal Deposit Insurance Corporation in 2009, the latest year for which there is data."
Among the reasons cited in the story: "Lack of financial literacy, mounting debt, poor credit and no savings."
Among the reasons cited in the story: "Lack of financial literacy, mounting debt, poor credit and no savings."
- KC's View:
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There's also another reason cited in the story - convenience. And I find this particularly appalling, since there apparently are young people out there who would rather pay one-to-four percent of a check to a check cashing service in order to get it cashed immediately, rather than pay for gasoline and drive to the bank.
This is amazing, since these days, many banks make smart phone applications available so that all you have to do is take a picture of a check in order to deposit it.
Clearly, we all have to do a better job as parents teaching our kids about money. And maybe the schools should add some basic money management to their programs. But it also points to a mindset that marketers should consider in developing programs to appeal to this generation.
