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…

 
 

Want to talk to us about the article
or dive into a custom study?


Millennial News Feed

Quote of the Day: “Adventure Time is the show that best represents my generation because we like the nostalgic aspect of watching cartoons but we also like off-the-wall plots.” –Male, 21, MI 

Snapchat is ready to take over another space: teens’ faces. The app is introducing Spectacles, a new wearable that combines sunglasses and a camera, allowing wearers to capture video of their point of view and share it immediately to their Snapchat Memories. Though comparisons to Google Glass are inevitable, these specs come in bright colors and cool designs, making them more aesthetically appealing—a vital element for wearables’ success. While some might be skeptical of Spectacles, if they are as popular as Snapchat’s other efforts, “the youth will have made wearables cool in the blink of an eye.” (The Next Web)

Campaigns encouraging young consumers to vote are a hallmark of election season—but in 2012, 62% of young Americans reportedly didn’t cast a vote. So this year Rock the Vote has partnered with Doritos to spread the voting message in a unique way. The brand created a limited edition pack of “no-choice” chips with no flavor, no crunch, and boring packaging to show that not voting allows someone else to choose for you, and you might not get what you want. For a spot promoting voting registration, Doritos created a vending machine that dispensed the flavorless chips to any not registered to vote. (Creativity Online)

According to Alton Brown, Millennials have forever changed food entertainment. Ten years ago, cooking shows were all about simple instruction, but the generation’s “preference for bolder, edgier programs” and cooking savvy has changed the content and expanded the “food media landscape” beyond the TV screen. Those Millennial foodies, who might have watched Brown’s “kid-friendly” Good Eats growing up or on Netflix, are the audience for his new web series, designed specifically for mobile. For these viewers, all content will be under five minutes, and “f it doesn’t work on a phone, [he’s] not going to do it.” (Business InsiderFast Company)

Cheetos is bringing their museum back for Halloween. The brand’s summer contest asking consumers to submit their uniquely shaped Cheetos for cash prizes was reportedly one of their most “successful digital engagement programs of all time,” generating over 100,000 stories and photos. Thanks to that success, the brand is rebooting the effort, asking fans to build a Cheetos Monster with the snacks for a chance to win $50K. Turning brands or products into an experience a major marketing trend to attract young consumers. (MediaPost)

Millennials might use more apps than older generations, but they’re also spending more time on their top ranked apps than anyone else. According to comScore data, there are 20 apps that 25% of 18-34-year-olds are using monthly, compared to just 15 among those over 35-years-old. But the top 10 apps among the group are receiving 50% of Millennials’ mobile time, indicating that while younger mobile users have a more diverse range of apps they’re using, their few favorites are still getting the majority of their attention. (comScore)

Quote of the Day: “Bojack Horseman was my favorite show last year because it was funny and real. Maybe too real, just beautiful.”–Male, 23, AZ

Sign Up Now

Subscribe for premium access to our content, data, and tools.

Already a subscriber? Sign in.

Upgrade Now

Upgrade for full access to the best marketing tools for understanding the next generation.

View our Client Case Studies