Debit cards 'more popular among young Aussies'

By Mozo ·

A new study has revealed that young Aussies prefer to make use of their debit cards to cover their living costs.

Research carried out by the National Australia Bank (Nab) in collaboration with data analytics firm Quantium, the research reviewed debit and credit card transactions among people in Generation Z and Y.

These demographics take in individuals under 22 years of age and those between 22 and 32 years old respectively.

A range of interesting quirks were identified in the spending habits of many Aussies – and these crossed generational and geographic boundaries.

When it comes to supermarket shopping, Generation Xers – who are currently between the ages of 43 and 52 – and Baby Boomers (between 52 and 66) appear to be happier with credit cards.

However, people in the younger age ranges are putting almost twice as much through the plastic tied to their current account than they are on credit.

Over the course of the last year, Generation X spent an average of $54,943 per person combined on both payment methods, which is more than the equivalent for any other demographic.

Baby Boomers and Generation Z spent somewhere in the region of $54,499 and $17,823 respectively, with Generation Y averaging $30,976 per year.

Indeed, this could have particularly been the case over the summer, as a separate study conducted earlier in the year by the Australian Bureau of Statistics found that retail sales were up by one per cent in June to a seasonally adjusted $21.585 billion.

"Choosing the right payment channel can make it easier to manage your money easier each month," commented general manager for Cards and Personal Loans at Nab Michael Shurlin.

"Credit cards can provide customers with a range of benefits including earning rewards points, taking advantage of interest free days or creating breathing space when they need to spread their payments out over a few months," he added.

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