TIME magazine says that by 2017, millennials will have more buying power than any generation. This forecast only justifies the claims that members of Generation Y have smart money habits. A 2013 study cited by The Atlantic, on the other hand, found that millennials anticipated spending the greatest amount of money in the coming on year on food — with many skimping on luxuries.
These authoritative statements, however, do not mean that the entire generation of millennials will not spend on life’s little indulgences or apply for car loans. It just illustrates how millennials know their priorities and spend their money wisely.
Love for Experience
YOLO (You Only Live Once) may be one of the concepts that define the generation, but millennials would rather spend on experiences over material goods. This explains why they love travelling, exploring cultures, and challenging themselves by stepping out of their comfort zone.
The Purpose of Technology
Internet connectivity and different gadgets contribute significantly to how millennials spend their money. While older generations depend on traditional advertising to validate their decisions, millennials consult the web before buying. They make educated buying decisions, as product and information and reviews are readily available online.
On Supporting Social Entrepreneurs
It is interesting to know that millennials are more likely to spend on products coming from brands that promote a social cause rather than heritage brands that simply have a name. This is the reason companies like TOMS Shoes, Ark Collective, and Soapbox Soaps are popular and continue to target younger generations. The motivation behind this spending trend among millennials may be the desire to re-imagine and restructure corporate responsibility after the recession. They were challenged to be inventive when it comes to earn profit while addressing social issues.
The spending habits of millennials are attributed to many different factors, which can be economic, social, and personal in nature. Regardless, these spending patterns are clearly one of the things that define the entire generation.