BMO Report

Canadian Millennials are Summer's Smartest Spenders

TORONTO, ONTARIO--(Marketwired - Aug. 4, 2016) - As Canadians enjoy the warm weather, millennials have proven to be most aware of how they are 'spending' their summers. Even during the season where one third of the group (38 per cent) acknowledge spending more, millennials remain the most committed of any generation to paying off their bills on time.

Millennials' Credit Chronicles

Millennials owe an average of $2,000, which is still far lower than the $3,500 owed by the echo and baby boomers. Millennials are also the least likely of any age group (14 per cent) to carry a balance over $5,000, compared to 26 and 30 per cent of those 35-54 and over age 55, respectively.

The report, conducted by Pollara, also revealed:

• More than any other age group, millennials feel guilty after a high spending season (56 per cent);
• 47 per cent of millennials will pay off their total credit card balance in advance of summer, compared to 34 per cent of Canadians between the ages of 35 to 54; and
• Of the 31 per cent of millennials who will use their credit card or a line of credit this summer, 27 per cent will pay off their balances in full when they receive a statement, compared to only 18 per cent of those between the ages of 35 and 54.

Additionally, the 2016 BMO Wealth Management Survey found millennials consider spending impulsively more of a long-term concern than any other age group. Millennials also hold concerns about maxing out credit cards and having the means to pay only the minimums.

It's all in the rewards

Most millennials (81 per cent) have a credit card with a rewards program, with cash back rewards representing the dominant preference of the group (59 per cent). Millennials are also savvy rewards collectors, preferring to use their rewards credit card (41 per cent) over other methods of payment. They are also the most likely group to switch to a different financial institution offering a superior rewards card, even if only for a limited-time promotion (40 per cent). For those millennials who collect cash rewards, they are the most likely group to use their earned cash towards paying off bills or debt and putting the money into savings (47 per cent and 34 per cent of the group respectively).