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: “Calling doctor offices takes too much time. If they don't have a patient portal where I can do everything online, I find another doctor. I couldn't find a dermatologist in my area who didn't require several phone calls, so I gave up.” –Female, 30, FL

Mobile devices are the first thing that 80% of Millennials reach for in the morning, and their digital dependence is seeping into more than just wake-up media. 88% have or would deposit a check by snapping a picture of it and 45% would want to pay bills the same way. The camera is the number one most important smartphone feature among this generation, and 33% even think a photo of their driver’s license could be put to good use as a way to enroll in anything from gym memberships to credit cards. (USA Today)

While online dating seems to give Millennials increasing hope of a modern day “happily ever after,” their happiness may be short-lived. Researchers from Stanford and MSU have found that breakups are more prevalent among couples, both married and unmarried, who met online than those who met in more traditional social settings. These stats are credited to simple facts: the mystery and risk of who is behind the other side of screen causes online relationships to take much longer to form into something real. (Jezebel)

To help heighten Millennial traffic, Jack-in-the-Box will feature an instant-win game promotion with prizes ranging from date night movie tickets to a two night VIP experience in Las Vegas. These big ticket offerings will capitalize on the healthy performance of their late-night menu, accounting for 16% of their sales in the first three quarters of this year. The chain has lost its once strong hold on the late-night market, and hopes to regain Millennial consumers with a menu of savory, mash-up items that they may not crave for lunch or dinner but become must haves after dark. (Huffington Post)

Millennial parents are more practical than ever, a trend we explore in-depth in the new edition of Ypulse Quarterly releasing tomorrow. Upcycling used clothing and embracing swaps are the kind of sustainability minded and money-conscious initiatives they support, so it’s no wonder that Kallio, a children’s clothing line made entirely from upcycled men’s shirts, reached its full funding on Kickstarter today.  The Brooklyn-based brand intends to invest in both the clothing line as well as a community workshop to teach sustainable design technique. (Fast Company)

While social media platforms like Instagram and Twitter seem to be dominating for innovative marketing efforts, Facebook still holds steady ground. In a small study of marketing professionals, digital platform Offerpop found that 92% of social marketing budgets will be spent on Facebook this holiday season. The survey from Offerpop also shows that 16% plan to spend money on Snapchat, but finds that 48% are hesitant to invest their budget in untested networks such as Yo and Wanelo. (The Drum)

Every other week we tap into our panel of 150,000+ Millennials in a survey of 1,000 14-32-year-olds to keep our finger on the pulse of trending topics, changing attitudes, and new norms among young consumers. The question library in the My Library tab on Ypulse.com allows Silver and Gold subscribers to see every question we’ve asked and how we’ve asked it for our entire history of bi-weekly surveys, and a search of Ypulse surfaces all the relevant related data that we’ve collected from young consumers. (Ypulse)

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