Millennials: Spenders on the Rise
Millennials have long been a focus for marketers due to their enormous volume and significance compared to other generations. As we all know by now, Millennials are now the largest generation on the planet at 83M+, surpassing Baby Boomers. Although the average income of a Millennial is relatively low, it is on the rise. Marketers are quick to take notice of this shift and what that means for how Millennials make purchases.
Millennials Still Digging Out of Debt
Although their money-making capacity is on the rise and their $30T in generational wealth inheritance is just starting, Millennials are still struggling to pay down student loans and credit card debt. This of course is having a dampening effect on their spending habits, for now. A poll of US internet users ages 18 to 34, found that on average they carry $3,864 of credit card debt.
This doesn’t mean that Millennials are not spending; their spending just differs from that of previous generations, with the elusive generation more focused on looking for deals and bargains.
Due to their tribal mentality, online reviews are the top purchasing influencer that Millennials rely on when making buying decisions. Other factors influencing buying behavior were fast & simple checkout, product personalization, and free shipping.
Millennials as Renters, a Quickly Changing Phenomena
Although Millennials are notorious for being renters, that is quickly changing. Data shows that Millennials aged 28-34 years old are twice as likely to own a home than those 21-27 years old. While Millennials may be considered less established financially, on average, compared to other generations when they were of a similar age, they also did not inherit the same spending habits their parents did, according to a recent study.