There’s a growing generation gap when it comes to using plastic for purchases under $5, a survey out this week by CreditCards.com reveals. More than half of Millennials are likely to whip out a card for a pack of gum or a newspaper, while 77% of people older than 50 still dig out cash.
The plastic cards young people are reaching for at cash registers these days are overwhelmingly debit. Those ages 18 to 29 favor debit over credit by a ratio of almost 3 to 1, the survey of 983 credit card holders showed.
Other findings from the survey, conducted by Princeton Survey Research Associates International for CreditCards.com done July 17-20 and July 24-27:
• Overall, 65% of Americans typically pay for purchases under $5 with cash; 22% use debit cards, and 11% use credit cards.
• Cash is the preferred payment method for almost eight in 10 rural card holders, vs. 62% of city dwellers and suburbanites.