Millennials and Their Spending Habits

Millennials are a generation unlike any other.

From their education and work experiences to when they start a family and where they live, Millennials (born between 1981 – 1996) are carving out new ways of life compared to previous generations. How they spend their money is no different!

The Millennial Mindset

Before we delve into Millennials’ spending habits, it’s important to understand what Millennials are best known for.

Besides being tech-savvy and probably university-educated, they are great multi-taskers, extremely self-confident and have clear career development goals.

Sustainability is hugely important to them – and plays a big factor in deciding which brands to purchase and become loyal to. Their workplace, which they will frequently change throughout their career, is often chosen due to its structure and learning opportunities.

Millennials Spend More Freely Than Other Generations

Millennials have very different money goals than their predecessors.

With their financial goals set on short-term rewards (think vacations and technology), many Millennials do not place a high importance on saving. The majority of this population have less than $1,000 in their savings accounts and lack knowledge in investment planning.

Besides having more hefty university costs and living expenses than their parents and grandparents, Millennials have more liberal spending habits, too. Here’s a breakdown of the different generations’ spending habits:

With one of their highest spending expenses being experiences, Millennials have made it clear that they place more value on experiences rather than things. They also spend more money on taxis, clothing and the latest electronic gadgets.

Millennials and Financial Planning

When it comes to traditional banking, Millennials are more likely to switch banks compared to older generations.

They also place a higher importance on the role of technology in banking. Mobile banking plays a huge role in their lives, as does digital currencies and payment apps.

Their financial priorities differ, too.  Smaller, essential items like cell phones and computers are Millennials’ focus rather than larger investments such as vehicles and properties.

According to a report by Charles Schwab, 34 percent of Millennials have a written financial plan, compared to only 21 percent of Generation X and 18 percent of Baby Boomers. Almost three-quarters of Millennials used professionals to create their financial plans, which almost all of them update on an annual basis.

Millennials: Never Too Early to Make Final Arrangements

When it comes to their final arrangements, many Millennials are placing a preference on “natural” or “green” burials.

As an environmentally friendly funeral, “green” burials do not require any embalming and do away with traditional caskets and cremation. Along with their environmental benefits, this type of funeral is known to provide a type of emotional closure unlike that of traditional services.

Whether it be a “green” burial or a traditional cremation or funeral, making plans for one’s final arrangements is crucial.

Are you a Millennial and interested in learning more about what’s involved with planning your final arrangements? Or, want to hear more about the options available with a “green” burial? Contact Circle of Life Cremation and Burial Centre Inc. today.