Millennial Spending Habits: Where’s the Money Going?

Mar 18, 2019 by

This image has an empty alt attribute; its file name is Millennial-Spending-Habits-Wheres-the-Money-Going-1024x682.jpgAs Millennials have grown up and started adulting, it’s become apparent that they have an impact on our culture, politics, and economy.

At the forefront of Millennial spending habits, they are impacting the economy because they’re waiting longer to start a family and buy a home than previous generations.

Read on to learn more about Millennial spending habits.

Student Loans

Millennials and the student loan crisis are synonymous with each other. Not too many Millennials found great jobs to put themselves through school. Instead, many of them are saddled with thousands of dollars of debt.

Rent & Housing

Millennials spend more on housing than previous generations. That’s not because they’re buying homes. Instead, they’re opting to pay rent and live in cities.

Major cities offer a better chance for them to increase their annual income than suburbs or rural areas.

In addition to that, Millennials have so much debt, that they cannot afford to buy a home. Most of that is from student loans.

Investing in the Future

While the financial picture for Millennials may seem bleak, there is a ray of hope. Millennials do understand the importance of investing and saving for retirement.

They may not have the means to save for retirement in the traditional ways, but they are making an effort. They use mobile apps like Robinhood to invest in penny stocks, cryptocurrencies, and stocks.

Social Activism and Causes

A generation can be defined by its involvement in social justice and various causes. For baby boomers, that’s defined by the civil rights movement and the Vietnam War.

Millennials have the highest rate of unemployment yet are among the most charitable among generations. It’s just that they have a different way of giving. They’re more likely to donate to GoFundMe campaigns than they are to traditional nonprofit organizations.

Entertainment Spending

Millennials have a reputation for being the slacker generation, even more so than Generation X. They seem not so much as slackers, but Millennial spending habits will show that they put their needs first and be more inclined to make impulse buys.

The thing is because they are carrying so much debt, they have less discretionary income. They take fewer vacations, and they don’t buy household items (thanks, mom and dad).

Even though a higher percentage of millennials live at home, millennial spending habit are up for basic needs (rent, food, utilities). The end result between the higher cost of living and higher debt means less discretionary income.

Millennial Spending Habits Revealed

If there’s one generation that’s dominating media attention right now, it’s the Millennial generation. They have a massive amount of influence in our country.

Where they have the largest impact is in the economy. When you compare Millennial spending habits with previous generations, it’s clear that they are dealing with a lot more debt and stress. That has an impact on consumer spending, real estate, and investing.

If you want more insight as to how our world continues to change, read this article that shows you how AI changes traditional jobs.

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