Millennials’ spending surpasses savings, according to study
College students know firsthand the impact of financial spending, whether it’s spending money on textbooks or the latest fashion trend. The economy has negatively impacted many millennials, leading them into thousands of dollars in student loan debt and limited job opportunities.
“10 New Findings about the Millennial Consumer,” a Forbes study, surveyed 1,300 millennials about their financial spending and found millennials save money by buying items that are cheaper than expensive ones.
“While I’m attending college, I’m still living at home,” Hotel and Management sophomore William Torres said. “It’s affordable, and with the money I’m saving from living at home, I can soon buy myself a new car.”
71 percent would rather buy a car than rent one and 59 percent would rent a house instead of buying one; while 61 percent confessed they couldn’t afford a house. Millennials prefer to buy a car while still living with their parents because this allows them to save money while still being able to purchase the items they want.
This generation has a closer relationship with technology than any other generation since they have been shaped by technology at a young age.
87 percent will use two to three devices on a daily basis. 39 percent will purchase a tablet computer the next five years and 30 percent will buy wearable devices such as the iWatch.
“One bad habit I have is spending money on childish things that are way less important than school,” psychology sophomore Erwin Ellongsaid. “I love soccer and I tend to buy Manchester United gear or the new FIFA game that comes out every year.”
The generation will continue to spend much more than what they actually have. According to Accenture, they predict that about $30 billion of inheritance money will go from the Baby Boomers generation to the millennial generation in the future. 57 percent of millennials said their spending habits won’t change, while the rest of the generation is creating budgets to control their spending.
“I think creating a budget, albeit a strict budget, and tracking your money to see if you’re keeping yourself on budget is critical for financial success in any situation (whether) it is personal or professional,” Media Production junior Emily Chambers said. “Steve Jobs once said that saying no more often than yes can keep a person focused, and he helped revolutionize the way we communicate so I think there’s something there.”
More millennials are going to school now than individuals from any other generation. By going to college and obtaining a degree, many are able to afford their spending. Although many millennials are somewhat aware of their spending, they tend not to think about the future.
“I’m only 19 so that gives me plenty of time; I still have years and years until retirement,” Ellong said. “Since I haven’t started working in my field or career yet, saving money for retirement has not been a priority for me. I think once I start working and putting my psychology degree to use, I’ll start worrying about my family and retirement then.”