Nice infographic from TransUnion showing generational differences in their credit behaviors:

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A few questions for your students to ponder (there always has to be:)

1. Which generation has the lowest credit ratings? Why do you think this is the case?
2. Why do you think credit utilization is an important factor in considering how creditworthy a borrower might be? How are millenials doing in this category?
3. What are millenials most often using credit for (auto, credit card or mortgage)?
4. What trends to you see in moving from one generation to the next when it comes to credit? How would you explain this?
5. What steps can millenials take so they are not categorized as “Subprime?”

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Check out the NGPF Activity: Researching College Student Credit Card Usage

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.