As the year comes to a close, younger Millennials will be looking to spend serious money on some major purchases, according to the results of a new Bankrate.com survey.
The survey said that 68 percent of Millennials in the 18-26 age group are most likely to consider big purchases such as desktop computers, laptops, and tablets.
The survey further added that nearly half of all Americans (49 percent) say they’re “very likely” to make a larger purchase before the end of 2017. In contrast, only 17 percent of consumers responded that it was “not very likely” that they’d be making such a purchase in the next few months.
“With the economy continuing on the right track and the holiday season quickly approaching, Americans are already anticipating purchasing big ticket items like airline tickets, televisions and computers,” said Bankrate.com analyst Robin Saks Frankel.
Gen Xers (37-52) came in a close second behind younger Millennials when it came to making plans for a big purchase (62 percent). These respondents said they were most likely to buy furniture or an airline ticket for the holidays.
Overall, full-time workers, high earners (making more than $75,000 per year), college graduates, and Democrats were the most likely groups to report plans for making a big purchase. However, the lowest income households (making less than $30,000 per year) reported a somewhat or higher probability of buying a TV in the coming months.
Choosing the right credit card
Frankel says that responsible budgeters will need to plan ahead and shop around for the right card if they’re planning to make a big purchase in the coming months. Doing so, she says, will save them money in the long run.
Among her suggestions, she says that consumers should check their travel rewards credit cards to see if they’ve accrued enough rewards points or miles to take the sting out of buying an airline ticket. Some of these cards may even save travelers money by eliminating checked bag fees.
For consumers looking to buy appliances, furniture, or other products, she suggests using a cash-back rewards card that gives you 1-2 percent cash back on purchases. Consumers looking to sign up for a new card should also consider offers that include zero percent intro APRs.
“One strategy that can help you budget for a bigger big-ticket item, like a top-of-the-line iPhone, is to use a credit card with a zero-interest offer so you can pay off the purchase over time without accruing any interest charges,” she said. “As long as you intend to pay the balance in full before the promotional period expires, it can be a great way to help ease the sting of paying a big bill all at once.”
The Bankrate survey was conducted from August 17-20 and included a nationally representative sample of 1,003 adults.