Gen Z is giving credit card rewards to charities, while millennials are saving longer

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• Imprint, a cobranded credit card issuer finds generational trends in consumers’ use of their rewards.
• Millennials are more likely than Gen Z to save their credit cards rewards for “the next great thing”, while Gen Z uses their rewards in smaller amounts.
• Gen Z donates rewards for cards to charity, especially for environmental causes and women’s shelters.
• Read Insider’s guide to the best rewards credit cards.

There are many ways to use your smartphone. credit card cash backOr rewards pointsAlthough options may vary depending on the card, some of the most popular redemptions are statement credit, direct deposits, gift coupons, and travel. You can also donate your rewards, which is a rising trend among Gen Zers. 

ImprintCredit card issuer Imprint analyzes data collected from co-branded cards to personalize rewards programs with customer-trusted brands. Imprint discovered striking differences in the ways millennials and Gen Z use their rewards. 

Imprint’s data shows that Gen Zers are more likely to use their rewards in smaller amounts and donate them to charity than millennials. Gen Z is spending more on credit cards than millennials.

“We know our cardholders very well. We can see everything in real time, minute by minute. That’s how our data is gathered. Daragh Murphy, cofounder of Imprint and CEO, said that this is how we can see how people spend, as well as how they spend their rewards.  

I was surprised to learn that Gen Zers were donating a lot of their rewards. I really enjoyed it. value my credit card rewardsI’m not surprised that people sometimes depend on that extra pocket money. It was clear to Murphy that Gen Zers are attracted to donating rewards. 

However, it is important to note that data regarding Gen Zer’s credit cards use is limited and not yet available. While new data can help us see trends, it is not a guarantee that all credit card users will use it. 

We’re focusing here on the benefits and perks that come along with each card. If you have to pay interest or late fees, these cards will not be worth the cost. It is important to pay your credit card in full each month, make timely payments, and only spend what you are able to afford.

Millennials are saving more and getting older.

Millennials (26-41 years old) are growing older and are settling down with their families. mortgagesFamilies. Their spending habits reflect their wisdom or at least more experience. Imprint has been monitoring millennials credit reward spending habits over the past three years and found underlying trends to reflect how the generation has aged. 

“Millennials are moving into the adulthood of buying a house or having children. Murphy says that this naturally changes your buying habits, how you think about personal finances, and how you use rewards. 

Imprint has observed that millennials tend to keep their credit card rewards for longer times. Murphy describes it as “saving up towards the big thing” for millennials. This could include big vacations or other major purchases. paying down debt. 

These weren’t the only trends Imprint found. In fact, what made millennials card use stand out so much was how the data differed with Gen Z’s habits. 

Gen Z is more savvy with credit cards

Gen Zers, also known as zoomers, are between 10 and 25 years old. The data is not complete as Gen Z is only getting into credit cards. Imprint was still able to discern credit card trends which suggest the future financial savvy of Gen Z. 

“Gen Z is much more intelligent than we expected. They are more open to ‘what’s the best deal’ and ‘what’s the best price’.how do I stack coupons with my rewardsMurphy says, “It is possible.” Gen Zers, those who are old enough to have a credit card, do more research and are more selective with their credit card usage. 

Murphy thought back to his own experience as a millennial. He speculated that, because many millennials grew-up around the financial crisis, they might be more hesitant to use most financial products (even those that are helpful).

Gen Z, on the other hand, seems to have a completely different approach to financial products and credit cards. Murphy said that Gen Z is “savvier” about how they use rewards than millennials.

It was not surprising to me to hear that my generation finds better and more intelligent ways to use credit cards. Although Gen Z lacks experience, the internet is beginning to make up the difference. The internet has made it easier than ever to make smart decisions about credit cards. 

For most of my adult life, the internet was my first and best resource for information. Google was the first place I went to when I started researching credit card options. I was able, in just a few mouse clicks, to access hundreds more blogs. credit card reviews, guides and first-hand accounts of every card ever to exist (honestly, it gave my information overload).

However, just because you know something about credit cards does not automatically make it easier to use them. Sometimes applying learned knowledge takes time and practice — something that Gen Z (and even some millennials) are still getting the hang of. 

Gen Z is giving more rewards to charities 

Gen Zers are cashing out their rewards faster than millennials, and in smaller increments. The most interesting part is not. WhenGen Zers are reaping their rewards. How. 

Gen Zers are becoming more interested in cash back, statement credit, direct deposits, gift cards, and cash back. donating their rewards to charities.

“Gen Z wants to know how I can donate my rewards?” Murphy says Murphy. “Gen Z gives a lot for environmental causes. We have seen an increase in people giving money to women’s shelters since the Supreme Court ruling.

Gen Zers have grown to love the internet because it has made activism easy and spread awareness. I was already retweeting comments about workplace discrimination and viewing YouTube videos about global warming by the time I was in middle-school. Gen Zers are using their credit card rewards to benefit others, even if only a little. They give what they can, no matter how small, whenever they can. 

From personal experience, I have noticed credit cards that offer charity donations as a redemption option. This is partly what appealed to me as a young adult, with a low income, because I can now give money without having my bank account touched. 

If this donation trend continues it is possible that more credit card will add charities to their redemption options. It’s not clear if Gen Z will continue to give their rewards as they age, or if their priorities may change with their financial stability and age to better match how millennials are currently using their rewards.