Generational spending: Millennials
Those who were born between 1982 and 1996 are considered to be the Millennial Generation (or sometimes known as Generation Y.) These 22-36-year old individuals are either in the beginning or middle of their careers and also make up the largest generation in US history.
Their money handling and spending habits differ from generations before and after them. Let’s take a look at the financial insights of this generation.
Spending Habits
Millennials tend to spend more on comforts and conveniences but spend less on other services or luxuries than generations before them.
Millennials spend more per year on the following items than other generations:
- Groceries
- Gas
- Restaurants
- Cellphone (plans and hardware)
- Hobbies, electronics, and clothes
Millennials spend less per year on the following items than other generations:
- TV (mostly due to the availability of streaming services)
- Travel
- Health and wellness
- Furniture
Shopping Habits
Sometimes known as the “Tech Generation,” it’s no surprise that Millennials make up the majority of people making online purchases. With convenience and price at the forefront of purchase decision making, this generation will do some heavy internet investigation for the best deals.
- Nearly 60% of Millennials prefer generic brands over name brands
- Millennials regularly use subscription services
- 63% complete transactions on their smartphones
- 40% of Millennials read online reviews before purchasing a product
Millennial Debt
Millennials have some of the most debt of anyone in the country. With student loans, credit cards, and various lending sources, millennials have racked up a substantial amount of debt.
- $1 trillion in student loans are carried by millennials.
- Over 63% of millennials have over $10,000 in student debt.
- More than half carry a balance on their credit cards from month to month.
- 48% of millennials report living paycheck to paycheck.