4 Ways Millennials Spend Money Differently
The media and advertising industry have spent years trying to de-code the spending habits of the coveted millennial generation, often to little avail. There is no shortage of cringe-worthy attempts by brands to seem youthful and “hip”, which often fail to take into account how the current younger generations actually value and spend their own money.
The mindset of Gen Z is completely different from the Gen Xers and the Baby Boomers, which has spawned an entirely different outlook on spending and consumption. Here are the key ways that millennials spend money differently to other generations.
Experiences Over Things
There is a wealth of market research that now strongly suggests that millennials are significantly more willing to spend money in the so-called “experience economy” than on material items. The top spending priorities for millennials include meals out, which the average millennial spends over $4000 a year on, as well as vacations, concerts, and nightlife. Sales of material products such as jewelry, cars, clothing, and furniture have all nosedived among millennials, with only technology products continuing to sell in high numbers.
More Likely to Treat Themselves
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Although millennials spend less overall on recreation than older generations do, they are much more likely to indulge in the occasional (or regular) treat. While much has been said about millennial’s apparent preference for spending money on expensive coffee and avocado toast instead of investing in real estate, the fact that the housing market is so inaccessible to millennials has pushed many of them towards pleasurable, short-term expenditures. It may be entirely possible that there is now an entire generation that doesn’t see the point in saving, and with good reason.
Much More Capable of Spotting a Good Deal
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The millennial generation may seem spendthrift in some areas, but they tend to be very savvy when it comes to smart spending. Consumer surveys have shown that millennials are generally more willing to spend time comparing brands and stores online to find the cheapest options across a range of products. Even within entertainment sectors such as online casino gaming, the digital generation is doing a good job at saving their pennies. With many of the biggest online casino providers ensuring their slots and spins are always available for free, they have secured a big share of the deal-conscious millennial market.
Brand Loyalty is Dead
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Perhaps one of the most significant shifts in generational consumer habits concerns brand loyalty. For Gen Xers and, most importantly, Baby Boomers, brand loyalty is absolutely crucial. Older generations will stick with brands for decades once they have found one that suits them, often going out of their way and spending more to maintain that loyalty. For millennials, however, this is an alien concept. Research has shown that they will constantly move between brands, happily abandoning one if they think the quality has dipped or that the brand is not living up to the ethical expectations. This is one habit that brands will have to wake up to fast if they want to survive in the future. How millennials spend matters because that’s how the future will spend. With the millennial generation on track to be the highest earning demographic in the world in a decade or two, all brands and businesses need to adapt to their habits.
