According to a recent financial survey by Lending Tree printed in Forbes, different generations view and manage their debt in widely varied ways. Seniors above 65 are more cautious about using debt and saving money, largely influenced by past recessions and economic troubles. Young adults 35 and under, have a much larger tolerance for debt and a higher acceptance of credit. While using credit and debt isn’t a bad thing, this study indicates that younger generations may be setting themselves up for trouble. Without savings and with rising interest rates buying a home, financing education and paying for retirement may be increasingly difficult for younger generations
We could all stand to put more a little more value in following a "use it up, wear it out, make do or do without" philosophy. It is possible to do so while continuing to use credit responsibly and making the most of our borrowing power. Combining a moderate use of credit with a robust savings plan is the best way to blend modern and old-fashioned financial principles.
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