Millennials with Money Revisited: Updates from the 2014 Consumer Payments Monitor

26 Pages Posted: 30 Dec 2015  

Susan Herbst-Murphy

Federal Reserve Banks - Payment Cards Center

Greg Weed

Phoenix Marketing International

Date Written: 2015-12-22

Abstract

Overall growth in general purpose reloadable prepaid card ownership was not as robust between 2013 and 2014 as it was between 2012 and 2013 except in one notable segment: high-income Millennials. This same demographic group also exhibited a strong propensity to use alternative financial services along with traditional bank products. This paper further explores this group of "hybrid" financial services consumers. It also examines the broader use of financial services by young adults and reports on ways in which their choices differ from those of older consumers, along with evidence that conventional services are also used to the same -- in some cases, even greater -- degree as their parents' and grandparents' generations. The findings are sometimes counterintuitive, particularly with regard to some stereotypes about this young generation that have been put forth. Because of the size of this cohort, their behaviors could influence what the future of financial services consumption and delivery may look like.

Keywords: GPR prepaid cards, Millennials, Alternative financial services, General purpose reloadable cards

JEL Classification: D1

Suggested Citation

Herbst-Murphy, Susan and Weed, Greg, Millennials with Money Revisited: Updates from the 2014 Consumer Payments Monitor (2015-12-22). FRB of Philadelphia Payment Cards Center Discussion Paper No. 15-6. Available at SSRN: https://ssrn.com/abstract=2709313

Susan Herbst-Murphy (Contact Author)

Federal Reserve Banks - Payment Cards Center ( email )

Ten Independence Mall
Philadelphia, PA 19106-1574
United States

Greg Weed

Phoenix Marketing International ( email )

6423 Montgomery Street, Suite 12
Rhinebeck, NY 12572
United States

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