Generation Y, or the Millenials are a big percentage of our population. This group of 18-35 year olds is around 35% of our total population. But their number is much more significant as the people who earn a living and spend money. This young group of people are not only earning an income, they are also making spending decisions with that income. As the lifestyle of this generation differs a lot from the previous generations, they are affecting our economy in many different ways!
Here are a few ways in which Millenials spend their money differently:
- Millenials often do not buy cars, they prefer to rideshare.
- Millenials spend less on dine-in restaurants. They prefer to have their food delivered.
- Millenials are buying fewer TVs and are not even buying subscriptions to programming. This is because they prefer to stream on their electronic devices.
- Millenials are big on discounts. So they prefer to buy everything online - from groceries to expensive clothing and gadgets. Retail stores are witnessing thinning crowds and fewer sales.
- Millenials do not spend any money on print media. Why would they, when everything is available on their phones?
- Millenials avoid small mom and pop stores because they do not like to deal in cash.
It is because of these factors that Millenials are affecting our economy at the grassroot level. But this does not mean that Millenials can be blamed for economic slowdown. The millenials may not be spending on fine dining, but they are ordering pizza a lot more! They do not spend on cable TV, but they do spend on buying data! The sheer strength of numbers and their spending habits are contributing to our economic growth!