Millennials are no longer “those young kids with years ahead of them”. They’re now transitioning into further stages of life- which means millennials and money = increased spending habits. Did you know that millennials are the current largest generation of spenders? That says a lot for brands, businesses, and themselves as a generation.
Young millennials have no problem spending their money just as quickly as they acquire it- which is possibly their downfall. Material possessions are a prominent purchase in a millennials life, with investments and retirement on the least of their priorities. Discounted items from socially-engaged companies are also high on a young millennials spending list.
Millennials and money can be risky, but not all of them spend their money on everything with a discounted-sticker. However, it’s safe to say that a brand’s reputation, reputable word of mouth, and how a company gives back to the community are critical factors in how a young millennial decides to spend their money.
Millennials and Money: What Do Millennials Look for When Buying a Home?
As a young millennial myself, I can vouch to say that affordability and quality are the main factors I look for when buying a home. Everything else, such as landscape, design, and flooring are extras for which I’ll cross my fingers.
It Can’t Look Old or Too Cheap
Out-dated homes remind us too much of our nana and pop.We millennials lack vision; we love seeing things in the present- which means we need a home that’s both stylish but affordable (and doesn’t need to be torn down entirely before living inside.)
Location is Ideal
Young millennials appreciate a home situated in a relatively safe location or an area surrounded by plenty of transportation.
Purchasing a home that’s still out of the city center, but further enough in where you don’t need to drive more than 40 minutes, is ideal.
The Real Estate Agent is Also a Factor
Please don’t get me wrong, not every young millennial cares about their real estate agent… but I sure do.
If I’m being shown a home from someone who doesn’t appreciate the home for themselves, it makes me think, “hmmm, why does this person lack confidence in the sale of this house?”.
Of course, there could be many reasons, but having a friendly, adaptable, and confident real estate agent assisting you is a huge help during a young millennials decision-making process.
Recommended Read: Why Young People Should Be Taught About Managing their Finances
Millennials and Money: When Are Millennials Able to Retire?
A study conducted by NerdWallet proved that a class of 2015 could not retire until the age of 75.
The way a young millennial spends and invests their money in their early life stages is crucial to forwarding their average retirement age.
Unfortunately, however, retirement isn’t something most young millennials think about until they’re older- leaving it often too late to retire any earlier (even for millennials in average-wage salaries).
Millennials and Money: Can Young Millennials Buy Luxury Cars?
The phrase “luxury car” is no longer just a dream, but is an active goal which most young millennials are working towards obtaining- even if that means going broke while doing so.
With the constant pressures from social media influencers, celebrities, and their inner-circle remain prevalent, buying a luxury car has become the silent golden-ticket that lets everyone know- “hey, I’m successful!”.
Reality is, however, that most young millennials can not buy a luxury car until they’ve reached their late 20’s or early 30’s. For this reason, most people resort to financing or borrowing from a bank- despite genuinely understanding the implications.
Luxury car expenditure is one of the best examples of one of the worst decisions, relating to how young millennials spend their money on unnecessary items (even while living off average-wage salaries).
The Youngest Millennial Age
Although nobody truly knows the age bracket between Gen X, Millennial, and Gen Z- it’s safe to say that the youngest millennial age is 1998.
The Oldest Millennial Age
It’s anyone’s guess trying to explain the millennial age bracket, but if we were to look at commonality and traits- the oldest millennial age is 1985.
Young Millennials and Gen Z Spending Habits
Both Millennials and Gen Z are two similar generations. However, both have unique differences- especially when it comes to how they spend their money. Although Gen Z is still relatively young, that doesn’t make them any less of a spender than a young millennial wh.
Millennials and Money: Similarities Between Young Millennials and Gen Z
Find below a list of similarities between young millennials and gen Z:
- Prefer brands/businesses that are authentic and share the same values
- Influenced profoundly by reputable word of mouth
- Are more likely to spend if shown “discounts” or “sales.”
- Digitally savvy and online shopping is prominent
- They do not understand the importance of retirement soon enough
- Facebook Ads or banners aren’t enough
- Rely on strict privacy
Millennials and Money: Differences Between Young Millennials and Gen Z
Find below a list of differences between young millennials and gen Z:
- Millennials spend their money on experiences
- Gen Z is focused on saving money
- Millennials use Facebook and Instagram more
- Gen Z use Instagram, Snapchat, and TikTok more
- Gen Z has a desire to own their own business
- Millennials prefer working in the highest position of an established business
- Gen Z are risk-takers, whereas Millennials prefer security before investment
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