Study: Millennials still spending despite economy
April 26, 2013
The National Retail Federation analyzed data gleaned from Prosper Insights & Analytics' April Consumer Survey in order to gain a better understanding of the spending habits of millennials, according to a post in the NRF BIG Blog.
The data revealed that 89.5 percent of young adults feel the economy is affecting their spending plans in some way. But despite having a higher unemployment rate, 18- to 24-year-olds are less likely to pull back their spending due to the economy, said Dianne Kremer, senior analyst at Prosper Insights & Analytics.
"Being less likely to carry the financial burden of a mortgage or the responsibility of children, coupled with being happier with the current administration in Washington, young adults are significantly more likely to have a 'live for today' mentality when it comes to opening their wallets. Though it's uncertain, these consumers remain more confident in the future health of the U.S. economy," she said.
The following data shows how millennials compare with the average adult when it comes to how the economy is affecting their spending plans:
- Half of millennials polled said they are spending less as a result of the economy, slightly less than the 56 percent of average adults.
- One-quarter of millennials are spending time finding the best deals online, slightly less than the three out of 10 Americans overall.
- Two out of 10 say they are spending less on apparel, compared to the 32 percent of other adults. Recent studies confirm that this generation has a high propensity to spend on apparel, and this certainly helps paint that picture.
- Discount stores aren't the highest on young adults list of ways to save a buck; 16 percent say they are frequenting discount stores more often, compared to more than one-quarter of average adults.
- Interestingly, travel is also not suffering too much for this age group; just two in 10 say they will travel less or not at all, compared to almost one-third of all U.S. adults.
- One-third say the state of the economy is driving them to use coupons more often, but that's less than the 42 percent of other bargain hunting adults out there.
- Just 20 percent say they are cutting back on the "little luxuries" these days (manicures, gourmet coffee, high-end cosmetics), less than the one-quarter of average adults.
