Today’s young adults aged 18 through 24, called Millennials by some, are exhibiting spending habits that their predecessors may find a bit perplexing. Despite a slow economy and higher unemployment rates, Millennials appear to be less likely to curtail their spending in several categories. “Live for today” seems to be their motto.
In their April Consumer Survey, Prosper Insights & Analytics shows a difference in the way Millennials compared with the average adult regarding how the economy is affecting their spending plans. Here’s a sampling of what they found:
50% of Millennials are spending less overall as a result of the economy; 56% of average adults are spending less.
One quarter of Millennials are searching the web for better deals; three out of ten of average adults are doing this.
Two out of ten Millennials are spending less on apparel; 32% of other adults.
16% of Millennials are frequenting discount stores more often; one quarter of other adults are.
Regarding travel, just two in ten Millennials say that they will travel less or not at all; almost one- third of all U.S. adults will travel less or not at all.
As to use of coupons to cut costs, one-third of Millennials say that they will use these; forty-two percent of other adults will.
20% of Millennials will cut back on the “little luxuries” like manicures and high-end cosmetics while 25% of other adults will do this.
How will this affect retailers? In the short run, it will most likely have a positive effect on sales. Whether or not this is sustainable is yet to be seen. One thing is clear, however. Millennials value keeping up with their certain kind of lifestyle, and they are more reluctant to give it up, even when the economy is slow.