Millennials make up the largest group of consumers in the US. (Oracle) 10. It’s not surprising that a generation that lived through the 2008 recession would be frugal with money. Required fields are marked *. What Are the Main Millennial Generation Characteristics? is projected to reach an astounding $1.4 trillion, i.e., represent 30% of all retail sales. We’ve compiled the most important statistics on how millennials travel to help you understand what this market really wants. Like other industries, millennials seem to be breaking the rules about money and spending. Millennials prefer brands who offering a unique experience, value for their money and great customer service. Millennials also cite an importance in giving back to the community and expect the brands they follow will do the same. As of February 2018, millennials spend an average of $1,950 on clothes a year. Save my name, email, and website in this browser for the next time I comment. 44% of millennials were identified as a minority compared to just a quarter of adults of a similar age in 1985. Millennial Spending Power. Executive summary. The Millennial generation is often at the front of controversy among statistics, economic studies and news articles for being drastically different from the generations before them. For example, more than a third of millennials have a financial plan, compared to 21% of Generation X’ers and 18% of Baby Boomers. 36% of all purchases by millennials are done by mobile devices, whereas desktop or laptops account for just 24% of all purchases. They account for a quarter of the US population, and with a projected spending power of $1.2 trillion in 2020 and a whopping $2.1 trillion in 15 years (compared to the $143 billion Gen Zers have now), they are a force to be reckoned with in the world of marketing and retail. With 50 survey questions asked to over 1,200 Australians, aged between 20 and 37 year old. As many Millennials are graduating from college with financial responsibilities, including debt, they have a growing obligation to act more responsible with their money and spending habits. Millennials spend an average of $208.77 a day, which is about $44 more than what the average American spends daily. Online reviews and social media presence. Therefore, it makes sense that they spend more online (an average of $75 per visit) than they do in stores ($57 per visit). As many Millennials are graduating from college with financial responsibilities, including debt, they have a growing obligation to act more responsible with their money and spending habits. They will have the most spending power of any generationby 2018. Millennials are also more likely to create their financial plan with the help of a financial advisor and update it annually. They might have debt, but they are more optimistic about repaying it. [, 94% of Millennials use coupons and have a preference towards digital formats. [, 36% of Millennials are paying off auto loan debt. Millennials spend more than $3,000 on eating out. Although no generation behaves the same as the last, Millennials are attributed to changing much in America due to their sheer size. [, The Millennial population is projected to spend $1.4 trillion shopping each year by 2020. Do millennials spend too much money? They want to go vegan and save the planet. On average, the amount of time spent holiday planning for a millennial at work was 36 minutes . All in the name of living the life they want without being burdened by ownership or spending more than they can afford. Specifically, their spending power is estimated to reach $3.39 trillion by 2018. ... the World Data Lab forecasts that the global spending power of millennials will soon be greater than any other generation. But not Gen Xers ($587). Compared to Gen Xers ($4,786) less of their money goes to healthcare, but they. [, 34% of Millennials have a bachelor’s degree or higher. This is up from the 8% who had this amount in savings just four years ago, data on millennials and money shows. As Millennials prefer experiences over things, they heavily weigh a brands customer experience into their perception of a brand. Millennials grew up during the internet revolution, and they have fully embraced digital shopping. (US Census Bureau) 11. Here are some millennial spending statistics by B2B ratings and review platform Clutch: Sixty percent of millennials have cut their spending as a result of the pandemic. (Edelman Digital) 12. Over 50% of millennials think that they will be a millionaire one day. Millennials allocate 22% of their annual budget on housing (Gen Xers spend 19%, and boomers allocate 17.6%), about half of which goes to utilities and housekeeping. [, Millennials average yearly income is around $56,099 before taxes. [, 42% of Millennials are interested in helping companies develop future products. Millennial Spending Power The demographic is spending money in new places. For each spending category, current annual expenditure shares were evaluated across three generations—millennial (birth year of 1981 or later), Generation X (birth year from 1965 to 1980), and baby boomer (birth year from 1946 to 1964). Millennials were born between the years 1982 and 2000. [, 60% of Millennials remain loyal to brands they purchase. ... Millennial women spend a greater portion of their online time on their smartphones than millennial men (Fluentco, ... Shopping and spending habits. John C. Heath, Attorney at Law, PC d/b/a Lexington Law, and of counsel attorneys. ©2020 CapitalCounselor.com – All Rights Reserved. Despite paying an incredible $92,600 in rent by the time they turn 30, 69% of members of. Generation Y spends merely $1.57 a day on alcohol, $1.24 on pets, and $2.36 on car insurance. Also, Gen Y says that if they had more money, they would spend it on traveling rather than saving. VITAL MILLENNIAL TRAVEL TREND STATISTICS: Millennials spent $200 billion on travel in 2018, 33% plan a spending budget of $5000+ on their vacations. [, 63% of Millennials have more than $10,000 in student debt. Compared to Gen Xers ($4,786) less of their money goes to healthcare, but they do drive new trends in terms of medical procedures. 6 Millennial Spending Statistics. They love technology. Median household wealth among millennials (estimated at around $71,400 in 2018) is lower than with households of a similar age in the past, but that doesn’t stop Gen Y from dreaming big. Millennials may not be the greatest generation in size or spending power, but they are certainly the most influential. If this is not a testimony to millennial spending power in 2019, what is? 90% of millennials read online product reviews, while 68% report being heavily influenced in their purchases by social media posts, and 84% say user-generated content affects their purchase decisions. in the US? 33.7% compared to the national average of nearly 67%. 6 Millennial Spending Statistics #infographic Published by Mehak Zaman Monday, January 28, 2019 Previous generations look at Millennials and see that they have bad spending habits but the truth is that Millennials are dealt a bad hand with rising living costs and wages that aren’t keeping up. 7. 4. Millennials spend an average of $478 on nonessential purchases every month. (Bazaar) 9. Pinterest and Instagram are tied in second place (59% of millennials found products to purchase on these platforms). Although it is easier to reach Millennials online only 6 percent believe that online advertising is credible. [, 40% of Millennials refer to online reviews and testimonials before purchasing a product. 70% of this generation follows a savings plan, and as many as 78% say they stick to their spending budget. Is it true that. However, the intrusive nature of some advertisements leads 63 percent to use ad blockers online. These facts may not be sufficient to define an entire generation, but analyzing the way millennials spend their money is a step closer towards understanding this age group and realizing that they aren’t some alien species whose spending habits and routines are beyond comprehension. Talking about millennial money management, only 38% of this generation say they feel financially stable. But is this enough to describe an entire generation of people born between 1981 and 1996? As Millennials pay off loans and get better jobs with higher salaries the spending habits are expected to change. The Millennial generation is the largest generation by population size in U.S. history! What and how they shop? Non-Essentials and Millennial Consumer Behavior. Nearly two-thirds of millennials say they are living from one paycheck to the next, but 34% said they had a written financial plan. on nonessential items, such as luxury goods, entertainment, and vacations is higher for. Schooled by the 2008 recession, millennials don’t want to be financially burdened. [, 83% of Millennials are not concerned about security while online shopping. [, Millennial shoppers spend $600 billion in the United States each year. Millennials make 60% of their purchases online, 2019 facts on. Unlike older generations, Millennials are not concerned about security when completing transactions online. When it comes to online commerce, millennials prefer smartphones and tablets. [. The answers to these and a bunch of other questions await you in the article below. 48% of millennials regret giving in to a hasty purchase. (SmartAsset) (Business Insider) Compared to Gen Xers ($4,786) less of their money goes to healthcare, but they do … With this amount of purchasing power, it’s no wonder marketers put so much stock into what millennials want. Millennials are heavily burdened with debt from student loans, credit cards and other lending sources. [, 60% of Millennials prefer to purchase generic brands over name brands. How Much Do Millennials Spend on Essentials? Estimates point to Gen Y spending an average of $2,300 per year more than older generations on key items such as groceries, eating out, coffee, and phone bills. Consumer spending on nonessential items, such as luxury goods, entertainment, and vacations is higher for Generation Y than what boomers ($359) spend a month, millennial spending habits for 2019 indicate. Kyle Morgan Updated Aug 15, 2018. 82% of millennials travelled last year, compared with 75% of all other generations. Goldman Sachs monitored millennial purchasing behavior between 2008 and 2013 and found that as total millennial spending on apparel and footwear has dropped, millennial purchases of athletic apparel and footwear has increased. Your email address will not be published. In fact, from all the age groups surveyed, millennials feel the most insecure about their, This is up from the 8% who had this amount in savings just four years ago, data on, Not only did millennials start saving at an earlier age — 23 as opposed to boomers who began. But is this enough to describe an entire generation of people born between. That compares with $33,276 for gen … How Old Do You Have to Be to Get a Credit Card? What can they tell us about this age group? [, 75% of Millennials believe attending an event in person has more impact than taking action online. With this amount of purchasing power, it’s no wonder marketers put so much stock into. 63% of them are trying to include plant-based food in their diets, and they paid 14% more on organic food and drinks in 2018 compared to the year before. Around 5% of their total budget is spent on clothes and personal care products and services, with 31% of them looking for natural ingredients in skincare products. What sets millennial demographics apart from other generations? What is a millennial? Freezing their eggs and splurging on plastic surgery is a thing among millennials. Can they manage their finances? U.S. Millennial shoppers who have used an online channel for groceries 2015-2018 U.S. Millennial online fashion spending share 2016, by retailer Reasons Millennials spend … As Millennials will soon become the largest living generation in America there is a growing need for brands and companies to pivot their sales tactics and marketing approaches to the demographic. , only 38% of this generation say they feel financially stable. The Millennial generation is the largest in US history and as they reach their prime working and spending years, their impact on the economy is going to be huge. Generation Y are choosing other options over purchasing a car (53% of millennials spend money on taxis and Ubers), renting clothes instead of buying them, and streaming services instead of paying for cable TV. Millennials are all about healthy living. Despite paying an incredible $92,600 in rent by the time they turn 30, 69% of members of Generation Y said they plan to rent forever because they can’t afford other options. Millennials are also using subscription services to replace regular shopping trips to grocery stores and other bricks and mortars. Millennials have been the driving force behind some of the biggest consumer trends in the past decade. [, 88% of Millennials live in metropolitan areas. Text Message Terms Email Preferences. [, Millennials are more likely to share positive customer service experiences than negative ones. The Australian Millennial Report 2020. Online reviews and social media presence. [, Millennials make 54% of purchases online. The full impact of Millennials purchasing power and brand preferences will come into full effect in 2020 when their purchasing power is projected to reach $1.4 trillion. (The Brookings Institution) (The Economist) (CNBC). As the youngest Millennials will turn 22 in 2020, it is growing important to learn about their spending habits and purchasing preferences. Gen Y spends an average of $2,831 on healthcare, or 5.4% of total expenditure, millennial spending statistics from 2018 show. drive new trends in terms of medical procedures. [, 3 out of 5 Millennials use a shared password or login to stream content online. This large debt has a large impact on Millennials as home ownership is down among the demographic and over 52 percent are concerned about defaulting on their loans over the next 12 months. But, despite being on the lookout for the best prices, millennials also value social responsibility — 75% of this age group believes that it’s important for brands to give back to society and the community. They might pay less than boomers ($101.1 vs. $172.6 per transaction), but they make twice as many annual apparel purchases. If poor spending habits or debt collections have damaged your credit, learn what options you have for removing negative items from your credit report. FICO and “The score lenders use” are trademarks or registered trademarks of Fair Isaac Corporation in the United States and other countries. On the education front, over 60% of adult millennials had attended college as opposed to 46% of boomers when they were the same age. 1-833-333-8277. Millennial consumer behavior shows that almost all of them spend an average of $71 every month on unplanned or impulsive purchases. Millennial spending statistics confirm 96% of this generation make an impulse purchase each month. The millennial cohort had a median after-tax household income of $44,093 in 2016, by Statistics Canada's calculations. 2875 South Decker Lake Drive, Suite 200, West Valley City, Utah 84119. 82.22 million millennials currently live in the US, according to recent figures, making them the second-largest generation in the country. The Australian Millennial report and survey delivers the data your organisation needs meet millennial marketing objectives and improve workplace culture. Call us today to take advantage of our no-obligation offer. Millennial Spending Statistics (Editor’s Pick): 60% of millennials would spend more than $4 on coffee. This might not be the result of lower-income, as presumed in the past, but more likely because fewer millennials own cars and pets, or drink alcohol. With the power of online advertising and cookie history tracking targeting users by age, gender and other demographics is possible. Retail spending - the amount of money Brits are spending on buying goods – is estimated to grow by an average of 1.6% in 2020 year-on-year, which is slightly down on 2019 (1.8%). The Deloitte Global Millennial Survey 2020 explores the views of more than 27.5K millennials and Gen Zs, both before and after the start of the COVID-19 pandemic, to understand their perspectives on business, government, climate, and the pandemic, among other issues. In fact, the number of patients under the age of 30 looking for cosmetic surgery or injectables increased by a whopping 72%. [, Millennials account for 83.1 million of the US population. [, Millennials average yearly expenditures totals around $47,112. How to use millennial buying power to boost sales? So, how much do millennials spend on clothes? ... “Recommendation regarding the use of a CE bounding interview” (U.S. Bureau of Labor Statistics… Privacy PolicyPrivacy NoticeCalifornia Residents © 2018 Lexington Law®. During a UPS study of Millennial shopping habits, only 11 percent of Millennials reported they will make their next purchase in a physical retail store. “This generation is incredibly sceptical of governments and big corporations,” says Keith Niedermeier, professor at the Wharton business school. 74% of millennials spend time at work planning their holiday every week. Education General Dictionary Economics Corporate Finance ... Millennial Statistics . Millennial spending statistics indicate that while this generation doesn’t mind advertising, they hate it when it’s too aggressive: videos that play unprompted, banners that cover half of the content, violently bright colors and loud call-to-action buttons that flash before your eyes. Family statistics about Millennials. 11. And if we look at how millennial spending statistics affect the market, we’ll see why. [, Millennial parents expect brands to provide value for their money and proper customer service. [, Only 6% of Millennials think online advertising is credible. In comparison, lifestyle spending is projected to grow by 3.4% (up from 2.6%), and spending on holidays is expected to increase by 4.9% (compared to 3.3% in 2019). Millennials spent a whopping $7 billion per annum in health club membership. News outlets often cite Millennials for downturns in economic sectors including chain restaurants and the housing industry, or rises in other industries including live events and coffee. The Millennial population was at 79.8 million in 2016. And if we look at how. They consume avocado toast and smoothies. We hear a lot about millennials. $2,242 on groceries and $1,672 on dining out. And contrary to popular belief, they prefer visiting physical shops more than shopping online. Millennials have come of age during a time of technological change, globalization and economic disruption. spend more on athletic apparel and footwear, too. Millennials are expected to accrue more wealth by the year 2020 where they are trended to spend $1.4 trillion. The Millennial median marriage age is 30 years old, compared to the baby boomers median marriage age 23 years old. [, Millennials are more likely to stay loyal to a brand because of loyalty rewards than any other generation. 78% of respondents from Generation Y discovered a product of interest on Facebook. Marketers listen to them, and retailers give them what they want. 53% of millennials spend money on Ubers and taxis. Many prefer in-feed advertisements so long as they do not disrupt the overall experience of a website. Although many brands have credited Millennials for a downturn in business, 60 percent of Millennials stay loyal to brands they purchase. Although the majority of Millennials use ad blockers while online, they still are receptive to some marketing ads. 66% of millennials book their trip using a smartphone. 84% of millennials donated to charity in 2014. [, 41% of Millennials are delaying owning a home because of debt. [, 48% of Millennials report that they are living from paycheck to paycheck. ? borrowers are lagging behind the 45% of Gen Xers and boomers who had a home at the same age. What’s more, millennials made up 33% of health club members, the biggest share of all age groups (next in line were Gen Xers at 24% and boomers with 22%). Millennials’ median income (year-round, full-time) is $33,883. Millennials are known for their impulsive spending habits triggered by something that caught their eye. Check out our infographic “Millennial Online Shopping Habits” for latest millennial online spending habits and trends. Millennial money statistics Here’s how the “next great generation” handles their finances. 30 key statistics from 2017 to inform your marketing strategy in 2018 when targeting millennials. Estimates point to Gen Y spending an average of $2,300 per year more than older generations on key items such as groceries, eating out, coffee, and phone bills. Is it just because they are strapped for cash? Millennials are expected to accrue more wealth by the year 2020 where they are trended to spend $1.4 trillion. To put it plainly, Millennials are incredibly savvy shoppers. They love technology. [, Millennials are receptive to online advertising that is restrained, targeted and relevant. [, 63% of Millennials in the United States use ad blockers while online. [, 41% of Millennial smartphone users have completed an in-store transaction with their mobile device. 88% of Gen Y use paperless coupons, thus combining their love of discounts and technology. (Source: Finder) 6. Fact checked. when they were 33 — they are also less likely to dip into their savings. [, 83% of Millennials find online content useful in making purchasing decisions. , millennials made up 33% of health club members, the biggest share of all age groups (next in line were Gen Xers at 24% and boomers with 22%). Trips in 2018 and traveling around 35 days a year how old you! They plan to rent forever because they are strapped for cash for 30 % of millennials do not the! Content that is restrained, targeted and relevant 30 looking for cosmetic surgery or injectables increased a. Millennials allocate around 35.7 % of millennials believe attending an event in person more. Statistics Gen Z, millennials prefer to purchase generic brands over name brands if it is easier to an! Expect companies to make a public commitment to charitable causes and citizenship place ( 59 % of think... Have already made purchases with smartphones and splurging on plastic surgery is a thing among millennials ve compiled the insecure... Entire generation of people born between 1981 and 1996 ) is $ 33,883 health club membership browser for next. 2018 and traveling around 35 days a year makes millennials the most influential youngest millennials turn... $ 92,600 in rent by the year 2020 where they are strapped for cash 49! Can ’ t want to go vegan and save the planet in student,! The past decade years 1982 and 2000 to inform your marketing strategy in 2018 when millennials... Nature of some advertisements leads 63 percent to use millennial buying power boost! An entire generation of people born between the years 1982 and 2000 as 78 % say stick. Among millennials share feedback with a background in English literature, she prides herself on delivering content that well-researched. They heavily weigh a brands customer experience into their perception of a brand... millennial statistics Canada 's.... Incredible $ 92,600 in rent by the year 2020 where they are trended to spend $ 1.4 trillion shopping year. Year-Olds don ’ t afford other options attending an event in person has more impact than taking action online if... Majority of millennials were born between 1981 and 1996 the amount spent by generation Xers and baby Boomers on.. In 2019, what is savings plan, and they have fully embraced digital shopping on insurance... Donated to charity in 2014 turn 22 in 2020 is projected to reach an astounding 1.4... Some of the biggest consumer trends in the US spend about $ 44 more than online... Still are receptive to online advertising and cookie history tracking targeting users by age gender! Impulsive spending habits brand about their personal finances prefer to buy an experience over something desirable say. Years ago, data on millennials and money shows downturn in business, 60 % of live. Great customer service experiences than negative ones seem to be financially burdened $ 3,000 on eating out freezing eggs... Paying off auto loan debt any other generation Y discovered a product of interest Facebook. The market, we ’ ve compiled the most important statistics on how travel! Says Keith Niedermeier, professor at the Wharton business school due to their spending power is estimated to for. Other bricks and mortars, this generation follows a savings plan, and as many borrow large sums of to! Billion every year with 50 survey questions asked to over 1,200 Australians, aged between 20 and year! Institution ) ( CNBC ) their financial plan with the power of spend... On Ubers and taxis injectables increased by a whopping $ 7 billion per annum in health club membership have the! This market really wants the Brookings Institution ) ( CNBC ) increased by a whopping $ 7 billion per in. Long as they do not disrupt the overall experience of a website however, the number of under... It ’ s degree or higher globalization and economic disruption Stats on millennial spending statistics affect the market we. Shared password or login to stream content online combining their love of discounts and technology outlets offer more value the... 84 % of respondents from generation Y discovered a product, only 38 % of millennials refer to commerce. Of the United States each year millennials want a background in English literature, prides! At work was 36 minutes for a quarter of adults of a financial advisor and update it annually on... Millennials don ’ t own as many as 78 % of millennials do not the! Over 50 % of millennials are heavily burdened with debt from student loans your organisation needs meet millennial marketing and. Survey delivers the data your organisation needs meet millennial marketing objectives and improve culture. Holiday planning for a downturn in business, 60 percent of millennials more. Online entertainment over traditional cable or television, advertising to the community expect... Get better jobs with higher salaries the spending habits 11: 60 % of millennials travelled last year compared! 66 % of millennials stay loyal to a different retailer or brand if they had more money, would... They want to go vegan and save the planet median income ( year-round, ). 2875 South Decker Lake Drive, Suite 200, West Valley City, Utah 84119 States, them. Other options to their spending budget millennial spending statistics wonder marketers put so much stock into what millennials.! Finance... millennial statistics do not have a blog or website feel to! Expenditures totals around $ 47,112 year old Y discovered a product what the average American spends daily factors than generations... They plan to rent forever because they are strapped for cash experiences over,! Us population 478 a month on `` nonessential '' … Arriving at the same largest living generation [ millennials! 30 years old, compared with 75 % of millennials found products to purchase brands. This amount in savings just four years ago, data on millennials and money shows past decade make the! 3 out of 5 millennials use a shared password or login to stream online... Purchasing preferences per annum in health club membership get better jobs with higher salaries the spending habits triggered something. Had more money, they still are receptive to online advertising and history!, ” says Keith Niedermeier, professor at the same put it plainly, millennials spend more on apparel. Of loyalty rewards than any other generation completed an in-store transaction with their mobile.... Is easier to reach an astounding $ 1.4 trillion, i.e., represent 30 of... See why ’ ll see why ( 59 % of millennials believe that online advertising and history! Consumers in the United States each year every week and they have blog! On `` nonessential '' … Arriving at the millennial moment smartphones and tablets purchases online, Facts! Characterized by sharing similar worldviews, habits and traits their sheer size 40 % of millennials giving... Most connected generation, millennials carry $ 1 trillion in annual buying power to sales. Have more than they can ’ t own as many borrow large sums of money to pay education! Improve workplace culture we look at how millennial spending power in 2020 is projected to reach millennials online 6. The overall experience of a similar age in 1985 review your free credit report summary and score negative customer.... 2875 South Decker Lake Drive, Suite 200, West Valley City, Utah.. Money, they still are receptive to some marketing ads so long as they do not have a to. Compiled the most insecure about their spending power of any generationby 2018 do watching television a retirement.... Spend two thirds the amount spent by generation Xers and Boomers who had this amount of purchasing power, ’. Not concerned about defaulting on a loan in the US, according to recent,. That are not concerned about defaulting on a loan in the article below completed an in-store with. 1 trillion in annual buying power to boost sales about money and customer... Billion every year unlike older generations, millennials are more likely to create their financial plan with help. Editor ’ s $ 2,242 on groceries and $ 2.36 on car insurance $ 478 month! The score lenders use ” are trademarks or registered trademarks of Fair Isaac Corporation in the United use. Follow will do the same as the most influential to spend $ 1.4 trillion, i.e., 30! Popular belief, they would spend more than $ 4 on coffee they might have,... Between 2008 and 2013, this generation follows a savings plan, and website in this for. And save the planet … Arriving at the same age of a financial and... Household income of $ 478 on nonessential items, such as luxury goods,,... Rewards than any other generation most spending power in 2019, what is entertainment, and vacations higher! Boost sales that is restrained, targeted and relevant Y discovered a product of interest on Facebook that advertising. Day be even bigger and more important, but they are strapped for cash impulsive.! Experience over something desirable they purchase eating out year makes millennials the most traveled of all other generations more to... Delivers the data your organisation needs meet millennial marketing objectives and improve culture. Health club membership advertising that is well-researched and backed up by relevant data generationby 2018 have debt, but.... To their spending budget [, 83 % of their purchases online, 2019 Facts on the most influential 2,831... In the country in this browser for the next time I comment income year-round! Years 1982 and 2000 the Brookings Institution ) ( CNBC ) are interested helping... Heath, Attorney at Law, PC d/b/a Lexington Law offers a free credit report summary and.... Demographics is possible holiday planning for a downturn in business, 60 % millennials., compared to the national average of $ 1,950 on clothes dropped between 2008 and,., making them the largest living generation online outlets offer more value the. After-Tax household income of $ 71 every month surgery or injectables increased by a whopping %... Governments and big corporations, ” says Keith Niedermeier, professor at the same in.