Millennials Embrace High-Low Budgeting

High-Low BudgetingMillennials are savvy shoppers and are often smart about their spending. They research items before they buy them, get their friends’ opinions, find the best deals, and search for discounts or coupons. However, they’re also interested in luxury items and to make such purchases, they embrace high-low budgeting. This means, they’ll splurge on items they really want, such as a tablet or handbag, but they’ll shop at more affordable stores, make their own items, and prepare their own food in an effort to cut back on spending. According to Ypulse research among 1200 14-34-year-olds, 51% say they’re sometimes willing to splurge on luxury items, but they always buy inexpensive items to balance it out. We’ve been noticing this behavior which reflects how resourceful Millennials are and how they’ve adapted in today’s economy.

For example, technology is of huge importance to Millennials and they’re willing to buy the latest devices, which they consider crucial for entertainment and communication purposes. They’re also willing to splurge on some staple clothing items that they know they’ll get plenty of use out of. They’ll even buy designer items on occasion, however, they’re highly aware of how to do so in the most affordable way. They embrace flash deal sites like HauteLook and Gilt Groupe, where they can buy such items for less. They also pay close attention to when stores offer free or reduced shipping and when coupon codes are available. In fact, 43% say they won’t buy an item online if they can't get free shipping.

Additionally, they’re interested in designer collaborations for less such as Target for Neiman Marcus, which enable them to have a taste of luxury in an affordable way. They’ll also buy inexpensive basics at mass merchandisers such as Target or Walmart, trendy items at fast…

 
 
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Millennial News Feed

Quote of the Day: “I won’t buy an already-made costume to dress up in for Halloween because most of the ready-made options for women are overly sexualized.” –Female, 19, TX

She's a Barbie girl, but it's not exactly a Barbie world. It’s been a hard year for the blondest toy, as we’ve detailed before, and sales of the doll have continued to fall, dropping another 21% in the third quarter of this year. American Girl doll sales also dropped during that time period, and the struggles highlight how the “affections of the target audience—little girls—can be fleeting.” But there are plenty of other potential reasons for Barbie’s tough times: Girls today want edgier dolls, and spend more on tech toys. (Huffington PostBusiness Insider

If done right, young consumers have proven they will continue to buy tickets to see superheroes on screen, and there are a lot more of these movies in the works. This week, Warner Brothers announced plans for 10 new DC comics superhero movies over the next five years, including Wonder WomanAquaman, and The Flash. A movie featuring Lego Batman is also being fast-tracked for next year, so kids and adults alike can look forward to another fix of awesome. (Wired)

It’s 13 days until Halloween, and this year could be the most costume-filled holiday ever. A recent survey has shown that over two thirds of Americans plan to buy a costume, the most in eleven years. The fact that Halloween falls on a Friday has likely been a factor in the boost. Ypulse’s own most recent bi-weekly survey found that 36% of 13-32-year-olds plan to don in a costume to celebrate, 30% of those who plan to dress up will buy a pre-made costume, while 54% say they will purchase some items to make a costume of their own. (Ad Age)

MAC cosmetics is creating an entirely new kind of store that will target today’s teens and tweens. The stores will be designed completely differently to appeal to the younger consumers, including a “major focus on selfies” and a table full of products to sample on the spot. When explaining the new approach, global brand president Karen Buglisi Weiler told WWD, “One store doesn't fit all…You have to be in the world of customization and relevancy now." The first location opened over the summer in Orlando, and is reportedly already one of MAC’s top five stores in North America. (Racked)

Some of the hottest tech startups today are part of the “photo economy.” Millennials and teens have made their penchant for visual communication clear, and helped to make multiple photo sharing apps into huge success stories. Now entrepreneurs are fighting into the space with photo apps that put an emphasis on “storytelling, shopping, and storage.” Competition is tough, and so far the many startups that have tried to make photos shoppable have not succeeded. But still clearly the apps to know next will likely have something to do with this picture-obsession. (Fast Company)

Did you know that thanks to our bi-weekly survey of 1000 14-32-year-olds nationwide, we track trends in social media, entertainment viewing, earnings, spending, and more? Our Silver and Gold subscribers get access to regularly updated charts following average daily spend and items purchased broken out by age and gender. We do the heavy data lifting, and we’re constantly adding new data to our trends. (Ypulse)

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