4 Surprising Facts About Millennial Spending Habits

You may ask, “What does this have to do with marketing?” well my friend, let me explain. Millennials are the hottest target audience in the market today. The majority of companies are targeting 18-30 year olds because they know that’s where they will get the most out of their branding and ROI’s. Millennials are constantly sharing and promoting products they love and voicing they’re opinions on products they don’t, so you can see how such an influential group of people can mean success for any business.

As a “selfish” and “entitled” Millennial though, I feel it is my duty to defend my own (hmmm maybe this what they were referring to as entitled?), especially when it comes to my spending habits, because c’mon, lets me realistic…they’re not that great. We often get a bad rap for not contributing to society: being unemployed, living with our parents, and putting off getting married or having kids. But with a collective $1 trillion in student debt and the constant rejection of employers, can you really blame us?

I recently stumbled upon a Business Insider article that summarized a report by Mizuho Securities surveying more than 1,500 millennials aged 18-34 on their spending habits, and was pleasantly surprised to find that millennial spending habits aren’t as bad as society makes them out to be. I guess there is more to us than meets the eye (and our wallets). Here are 4 [surprising] facts about millennial spending habits and my thoughts on them:

1. “Millennials do most of their shopping in physical stores. Sure, they are tech savvy and frequently shop online, but millennials haven’t completely abandoned stores and shopping malls. They like to touch and feel products before they buy them, and still appreciate the experience of shopping in a store. In fact, millennials still complete 54% of shopping in physical stores, according to the report.”

 Yes. Yes. Yes. I am a first-hand account of this one, partly due to my slight shopping addiction, but nonetheless, factual.

2. “Millennials save more money than the national average. “Contrary to popular rhetoric regarding a highly challenged consumer who may be burdened with debt and living ‘paycheck to paycheck,’ our survey of millennials suggests the majority of the demographic (74% of total responses) saves money every month compared to 26% who do not,” the report says.”

Listen, budgets are hard work. First of all, actually building a budget is a task in itself, but actually following through? Forget about it. But in all seriousness, saving is important. We know it’s annoying, but we also know its necessary. Even saving $20 a month, could be very beneficial in the long run! To my fellow millennials who don’t have a savings account: get on it!

3. “Millennials are planning to buy homes. They are delaying home-buying and marriage and kids, but they are planning to get to those life milestones eventually. When asked what they are saving for, millennials said (1) a house, (2) a car, and (3) retirement.”

Of course we want homes, what do you think we’re saving up for? Maybe we’re not looking to have the traditional “white picket fence” home, but we still want a place to call our own. As far as having kids, some of us want to wait because we want to be financially prepared for the expenses that come with raising a family (aka responsibility) OR some of us just simply don’t want kids. Is that such a crime? Plus, why change diapers when you can cuddle with a dog? Just saying. 

4. “Millennials aren’t just relying on Uber and Lyft to get around. They are actually buying cars. Like with homeownership, many millennials have delayed purchasing cars. But car buying among this demographic is rapidly rising and will continue to grow, according to the report. About 64% of millennials plan to buy a car in the next two years, and most of those who don’t plan to buy a car already own one, according to the data. Only 5% of respondents said car-sharing services like Uber and Lyft serve as a replacement for owning a car.”

I believe this 100%. Sure, Uber and Lyft are life-savers after a Saturday night out at the bar, but relying on a car-sharing service 24/7 can get a little stressful. As I mentioned before, we want something to call our own and having to depend on an Uber simply isn’t cutting it. I’m not saying we’re out purchasing Range Rovers and Mercedes Benz left and right (although it would be nice to be able to afford a Rover), but we are still financing cars and steadily growing that sales market. 

To end today’s article, or what appears to sound more like a rant, don’t underestimate Millennial spending habits. We work hard for what we want and no matter how many obstacles you throw at as (yes, this is directed to you baby boomers) we will continue to contribute our part to this world and grow any business who wishes to pursue us. We are loyal to the products/brands that we love, thus making our presence in the market very valuable!