Millennials always seem to have it hard. Not only have they inherited an economy that the previous generations have run into the ground, but they have also gained a bad reputation. Even though they don’t particularly deserve to be looked down upon, there are still many middle-aged people who somehow believe that millennials have brought their bad situation on themselves. Some of them think that their problems stem from buying way too many avocados.
It’s fair to say that the millennial generation have had a rough couple of years as they seem to have faced attack from a lot of external sources. But is this really deserved? Well, in actual fact, most studies and research show that this young generation are actually pretty good with their money. It’s just that wages are currently very low and the cost of living is so expensive – they don’t have much, but what they do have, they are very good at managing. Contrary to what their reputation may have you believe, they actually have some pretty good financial priorities.
Here are a few more things that research shows us about millennials spending priorities.
They Prefer To Shop In Person
Even though the millennial generation is one of the most tech-savvy and are constantly on their laptops and tablet devices, they actually aren’t shopping online quite as much as you might think. In fact, they still prefer to do most of their shopping in stores in person. But that won’t affect any online shopping figures just yet, though, as online sales are still strong in a number of other generations, including the baby boomers who are often regarded as technophobes.
Home-Ownership Is On Their To-Do List
Some millennials may think that ever getting a mortgage is nothing more than a pipedream now because of the extremely high property prices, but that might not actually be the case. In actual fact, there are still a lot of young people who are still working towards getting on the property ladder. Lots of millennials are currently saving towards a deposit, even though they are well aware that it could take a good few years and some financial help from their parents to help them get to their required amount.
But Marriage And Kids Might Have To Wait
However, millennials don’t seem so focused on all of the other traditional life milestones. Owning property is still high up on their to-do list, but getting married and having kids have drastically slid down that list as more and more young adults are choosing to put them off. The main reason for this is that they are just so expensive and there is no way millennials can afford them on their low incomes. Any money that they can save, they would much rather put towards their first home. As a result, many millennials are now cohabitating with their partner rather than getting married in to cement their relationship. So, at least it doesn’t meant that millennials feel that they need to stay single for financial reasons – it just means they have to wait a bit longer before they put a ring on it!
They Actually Save More Than The National Average
So, things sound pretty difficult for millennials right now, right? I’ve already mentioned that the cost of living is sky high – in fact, it’s more expensive than it has been for decades! That, along with the fact that wages are extremely low and stagnant, might make you think that it would be absolutely impossible to save any cash. But I’ve also mentioned that millennials are saving for home deposits, even though they are only doing so slowly. But guess what – the millennial generation is actually saving more than the national average! Even though most are living paycheck to paycheck, more than three-quarters are able to add some cash to their saving pot each month. Sure, it might not be earth-shattering amounts, but it is far better than nothing. And most of those who are saving are doing so without budgeting. They will find that setting up a budget and sticking to it will help them be more rigorous in their money management, which could see their savings increase by quite a bit!
They Rely On The Sharing Economy Rather Than Making Big Purchases
When it comes to other big life milestones, you might think of things like buying your first car. Are millennials able to make such a big purchase while they try to save for a house deposit and live off what little money they have left over? Well, it’s true that this is impacting their wider lifestyle and, as a result, many millennials are not buying any cars. In fact, the number of car owners in the 20 to 30-year-old group right now is a lot lower than what it was just over a decade ago. But that doesn’t meant that they are now relying solely on public transport. In fact, most millennials now use the sharing economy to get around. Apps such as Lyft and Uber have never been in more demand, and it is largely down to young adults who need to get from A to B. It could well be that car ownership is at an all-time low because of these new ride-share apps.
Millennials Can Still Afford To Eat Out
What with all that saving for a home deposit, and not being able to afford marriage, cars, and kids, you might think that millennials wouldn’t have the money for luxuries like eating out. But that doesn’t see to be the case. As a matter of fact, when it comes to budgeting for food, millennials spend most of their cash on eating out compared to buying groceries to cook at home. Is this down to clever money management or do you think it is a poor financial decision on their behalf?
As you can see then, millennials do seem to have their financial priorities in order, and they actually can afford to save some money!