Regardless of your age, you will always belong to the generation you were born into. Note: Another example, a member of Generation X who turned 18 in 1998 would now be over 40.ĭuring that time, he or she cares about vastly different issues and is receptive to a new set of marketing messages. Millennials are now well out of college, and that life stage is dominated by Gen Z. If you think of Millennials as college kids (18 – 22), then not only are you out of date - you’re thinking of a stage in life, not a generation. The reason is simple - generations get older in groups. Generational cohorts are defined (loosely) by birth year, not current age. What Ages Are MillennialsĪ common source of confusion when labeling generations is their age. Also, millennials are willing to forego some of the basic luxuries in order to stretch their dollar for spending on experiences by using rideshare services such as Uber.Īside from ensuring safety while enjoying the nightlife, rideshare services help reduce transportation costs while being mindful of decreasing the carbon footprint. These “experience” centered spending habits have allowed for the creation and growth of businesses such as Airbnb, which are centered around avoiding high hotel costs.Ĩ. Millennials have a tendency to spend money on experiences rather than material possessions. They embrace the work from where ever, whenever mentality, and are great at using the online economy to their benefit.ħ. While the rise of debt is one factor in the delay to buy property, many millennials have a desire to discover their true self and search for identity and meaning before settling down. While millennials are saving their money for retirement and their first home, debt makes it difficult for millennials to buy their first home right away.Īside from that, many millennials are waiting to buy their first home until they are financially stable, even before they get married. Millennials are Financially Unable to Purchase a Home That’s why we recommend services like Pathrise that help millennials get higher-paying jobs earlier in their career. While millennials may be saving their money, the majority of their income is spent on repaying debt, resulting in depleted savings and lower disposable income. Millennials Are Drowning In DebtĪmericans owe more than $1.4 trillion in student loans and the majority of that debt belongs to millennials, according to a survey of 1,000 Millennials by ORC International. The majority of millennials came of age during the great recession of 2008 and as a result, frugal habits have been ingrained in their psyche out of fear and unrest faced during this financial crisis. Many retailers complain that millennials are responsible for the decline of the retail industry and the closure of department stores. Recent studies from Transamerica Center show that 75% of millennials save for retirement. The recession is probably a huge motivating factor in saving for the future. Millennials are actually good savers, saving over 5% of their salary for various reasons such as emergencies, big purchases, as well as retirement. Some experts suggest that high spending and debt combined are causing millennials to move in with their parents. This is not the first time that the older generation points the finger at the younger generation. Historically, the “younger” generation has always been seen as frivolous and spending too much. Some habits seen exhibited during Millenials age. We put the exact date range of millennials as those who are 19-39 today – basically today’s college students to 39-year-olds. Other sources suggest that the cutoff date for millennials is 2000. This generation will replace the Baby-boomers as they retire. There are numerous conflicting stereotypes surrounding the financial habits of millennials, as this continues to be a hot topic. The reasoning for the cut-off date of millennials stems from the theory that individuals born after 2002 were not old enough to understand or be impacted by 9/11. This has directly impacted the average millennial net worth.Īside from technology and the recession of 2008, the events of September 11, 2001, also known as “9/11” were the most generation-defining moment for millennials in the United States. Those that graduated during the Great Recession, and post-recession graduates. Those that graduated before the great recessionĢ. But it’s important to note that there are really three groups of millennials ġ. They were born before computers and cell phones became widespread. Although there is no consensus on the exact years the actual generations begin and end, millennials are usually born between 1982 through 2002.
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