Credit and the generations

As we've been doing the interviews with older couples, one recurring theme is the perception of fundamental changes to attitudes towards possessions, between the generations we are interviewing, and their children's and grandchildren's generations. Many of our sample have remarked to the effect that 'In my day we saved up - if we didn't have the money, we didn't get the thing we wanted' whereas there is the belief that nowadays, people firstly seem to consider as necessities things that the older generations considered luxuries (such as a washing machine, or new furniture as opposed to second hand) and that they are prepared to borrow money to finance these purchases, rather than save up for them.

My perception (based on years working in financial services marketing, as well as my own life experience) is that the growth of the credit industry, particularly in the 70s and 80s, meant that people got used to the idea of getting things instantly ("Buy now pay later"). Indeed one credit card marketed itself with the line "Take the waiting out of wanting." Further, the inflation of the 70s particularly meant that there was little point in waiting: if you tried to save up, the price of the item would have put it beyond your reach, so much better to buy on credit and have the thing at the lower price.

Now though, we have low inflation: so are these generational differences just due to the formation - at key stages of life - of different habits which persist into later life, or are there some other factors at work here? Why are older people so (apparently) afraid of credit? Why are younger people so relaxed about it, even when it costs them a fortune?