Understanding millennial money is very important. It is important for economists to understand the economy of a country and World Economy at large. It is important for businesses to figure out where their revenues are coming from (simply because millennials make up for a substantial portion of the working population with the purchasing power) and devise strategies in accordance.
Millennials and their money habits
Where do the millennials spend their money on – mostly? One answer which quickly comes to mind is technology. Various resources have shown that the millennials that have survived a Recession are very cautious with their spending habits. According to a Neilson and Pew research, these millennials are financially savvier than their predecessors (and even their successors in some cases). They resort to substantial research on deals and discounts before reaching a decision. Much against the Gen X and Boomer generation, they are not very likely to pay for cable connections or telephone lines. However, our general increased dependence on technology inevitably sparks speculations- does this tech-savvy generation spend indiscriminately on the newer forms of technology? We will try to find answers here.
As per a report published in the Business Insider, the three spots where the millennials spend mostly are
- Cell phones
- Make Up
Thanks to James Cramer, we have been able to come across detailed opinions and observations regarding the same. As per a Harris Poll survey, the youth simply cannot do without a cell phone. Needless to say, they make for the crucial means of communication as far as millennials are concerned.
Documenting their every day experiences on social media is a dominant trend. The unprecedented presence of the digital media in the lives of the millennials is an established fact. In the recent past, it had been predicted that the Canadian millennials would go on to spend more than $62 billion on media content in the year 2015.
Uber sits pretty right at the top of millennial preferences as is noted by Business Insider. Jason Dorsey, the millennial expert (Center for Generational Kinetics) noted that millennials are in favor of spending their hard-earned bucks on experiences and technology. Uber, on the other hand, is a direct pointer to the millennials’ general aversion towards owning anything. Blame it on Recession or the Eurozone experience, millennials prefer sharing and bartering over owning something. Whatever, it is – it only spells a win-win situation for car rental businesses.
Thanks to Goldman Sachs and Teen Vogue, women aged between 13 to 29 years hailed MAC as their top make-up brand. And, they are spending substantially on make-up as well.