When standing in the checkout line, investors’ chosen payment option largely depends on the price. The majority of all investors (56%) are more likely to use cash for any purchases under $5, but with any other purchases over $5, investors switch to plastic, according to the latest survey from Spectrem Group’s Millionaire Corner (www.millionairecorner.com).
As payments grow more expensive, investors rely on credit cards even more. The majority of all investors (75%) typically use credit cards for purchases between $21 and $50. Overall, investors with $5 million or more in net worth, not including primary residence (NIPR), are most likely to use credit cards.
Young Investors More Eager to Swipe
The majority of investors age 40 and under use cash less often than older investors for purchases under $5: 46% of investors age 40 and under use cash for purchases under $5, compared to 67% of investors 61 and older.
Less Income = Debit
For purchases between $21 and $50, investors’ with an income less than $100K choose debit over credit: 47% of investors with an income less than $100K of net worth use credit, compared to 5% of investors with $5 million or more who chose debit as well.
Checks are a Dying Breed
Investors largely stay away from checks as a payment option. For purchases over $50, only two percent of the majority of investors paid with a check, with investors’ ages 51-60 using checks the most (4%).
Investor Pulse from Spectrem’s Millionaire Corner is fielded each month to approximately 1,200 investors. A set of questions, which changes monthly, is asked regarding interesting topical issues. The resulting research is analyzed and segmented by: age, gender, household net worth, retirement plan ownership, occupation, investment risk tolerance, marital status, investment knowledge, household income. Spectrem’s Millionaire Corner conducts the survey through an online panel and specifically targets selected wealth segments. The survey is completed by the person primarily responsible for making the day-to-day financial decisions within the household.