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Millennials often get a bad reputation for poorly spending their money. They usually get teased for spending money on travel and shopping instead of investing in a new house or starting a family. However, how millennials spend their money is merely a representation of their life preferences, priorities, and circumstances.
Many people think that millennials are thoughtless when they splurge on brand new iPhones or streaming services. But what they don’t realize is that the choices made by millennials could be wiser as they use these things to keep their sanity in a fast phased society.
Understanding Millennial’s
By definition, millennials are those born between 1981 and 1996. One of the key identifiers of millennials is that their group was born and raised when technology was just about to rise, allowing them to grow up with substantial knowledge of modern technology. Millennials quickly adjusted to mobile devices and computers from a young age as they transitioned into adulthood.
You may be one of the many people that think millennials are reckless when it comes to spending, yet understanding their patterns can help you know them better.
In most cases, their priorities are significantly different from one another. And if you are from another generation, their priorities are most especially different from your goals when you were the same age as them.
Millennials typically spend money on the following:
Online Shopping
Millennials are lucky enough to grow up in an era where online shopping takes place- making it highly convenient for them to order a new pair of limited edition sneakers. A recent study shows that millennials have made 60% of their purchases online. But that doesn’t necessarily mean that they are overspending in general.
Loan Payments
Millennials are more competent than people think they are. They are now more aware of the consequences of poor spending habits, so they ensure to pay off their debts on time. Unlike the older generation, many millennials know how the credit scoring system works, how having piles of debts could affect their finances and their future.
After graduating, one of their main priorities is to pay off their student loans, making it one of the top factors that affect their money habits.
Delivery or Takeaway Food
Most millennials are busy building their careers, leaving them little to no time to prepare their meals. Thanks to the rise of food delivery apps, takeaway food has become one of the top items that millennials spend money on. A recent survey shows that at least 50% of millennials’ food budgets are spent on food delivery.
Travel and Experiences
Most millennials have one thing in common: live their lives to the fullest. Millennials cherish life experiences astoundingly. In fact, they are the top age group that spends money on travel and leisure.
Undeniably, not all millennials prioritize being rich and buying assets. Their idea is to live a beautiful life that they can remember for a lifetime.
Social Impact
Millennials are more aware of the impact of the brands they purchase. They ensure that their values line up with the values of the brands they buy. The main idea is to support causes they believe in and give back. For instance, they don’t just buy any beauty products. Millennials ensure that they use environmentally friendly cosmetic items made from cruelty-free procedures.
Convenience
Millennials practically value their time more and would rather pay extra for convenience. As a matter of fact, convenience plays a significant in how millennials spend their money. From delivered groceries to subscription services to meal kits and more, millennials are more than willing to pay extra cash to avoid the hassle of traffic, going out of the house, and everything in between.
Things Millennials Don’t Prioritize
Since millennials know what they want in life, they tend to focus less on things they don’t find necessary.
In general, millennials have different points of view regarding spending. Their goals differ from the older generation as they have a solid plan for living their lives.