Old Spending Habits Die Hard For Gen Y

OCT 05, 2010

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The recession has driven Americans of all ages to find ways to reduce their spending. 62% of Americans are spending less, since the beginning of the recession, by cutting back on vacations, credit card balances, name brands, as well as other strategies.

A recent study by PricewaterhouseCooper found that while the older generation is embracing their new frugal ways, the younger generation cant wait to return to their pre-recession spending habits.

Interestingly enough, PWC cites young adults optimism as the root of the difference between the generations spending patterns.

One finding in particular shows the exaggerated difference of the youths rose colored glasses: eighty-five percent of young adults expect the economy to reach a full recovery within a year, compared to only 35 percent of adults over 65.

Understanding and employing smart money management habits is pivotal for optimizing your savings and your credit score, while reducing debts.

 The Basics:

– Know all your expenses

– Cut back on discretionary spending

– Put money in savings