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: “When I hear the phrase ‘The American Dream' I think…A loaded term that is meaningless these days. At this point, I'd be happy if I can manage to live a mostly comfortable, independent life. Is that The American Dream? I don't know.” –Male, 25, PA

When it comes to kids using tablets and smartphones, most of the attention is given to the dangers of it all: what will it do to their attention spans, their minds, or their health? But there are potential positives to their mobile use as well. One (Millennial) mom’s reasons for continuing to give her kids handheld devices include the importance of encouraging their technology and problem solving skills, expectations that they will know how to use them in school, and a hope that her girls will be involved in tech in their futures. (Hip Mombrarian)

This might be the year that vending machines became a full blown marketing trend, and Nike has put their own athletic spin on the tactic. Their recent “secret” vending machine in NYC, the Nike+ FuelBox, dispensed products like hats, shirts, and socks that visitors could only pay for with daily points from their Nike+ FuelBands, encouraging exercise in exchange for goods. (Engadget)

We’ve seen FoMo, the rise and fall of YOLO, and now social media has given us MoMo, the “Mystery of Missing Out.” Unlike FoMo, Fear of Missing Out when you see your friends posting a ton of fun pictures on social media, MoMo is the anxiety that results when friends stop posting. In the words of one Millennial, “’what can be so good that they aren't posting?’” It might seem silly to some, but for a generation used to being connected with friends nearly all the time, the feeling of exclusion that results from being left out and unaware of what’s happening is real. (Jezebel)

The value of higher education is already being questioned by Millennials, and evidence is continuing to mount that college systems and hierarchies need to be rethought. One former Yale professor is making headlines by telling parents not to send their kids to Ivy League schools, and that those who attend are not the “winners in the race we have made of childhood” but that instead elite education produces “anxious, timid, and lost” young people. (New Republic)

Oh, Barbie. She's had a rough year, and Mattel recently released an Entrepreneur Barbie in an attempt to tap into girl power marketing, and revive flagging sales. But is the reality that Barbie is just too perfect for today’s kids? The brand’s offbeat, weirdo Monster High dolls do far better than pristine, “clean cut” blond icon. Tapping into new trends in toy tech and giving Barbie a renewed sense of “imaginative play” might help, but at the same time post-Millennials, like the generation before them, could be turned off by anything that doesn’t show some flaws. (The StarPhoenix)

Quote of the Day: “When I hear the phrase ‘The American Dream’ I think of 1950s cliches, the economic downturn of 2008, and how college debt has pretty much made it impossible.” –Female, 17, RI

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