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: The emoji I most send is 100, because I'm 100% real.”—Male, 15, TX

Brands are now #adulting in an effort to relate to Millennials. In 2014, our Chasing Neverland trend reported Millennials’ desire to escape grownup responsibilities and indulge their inner-kid. Since then #adulting, which comically references the so-called adult struggles like paying rent or “showering beforenoon,” has blown-up online, getting mentioned 642,000 times just last year. Now brands are joining on the trend, tweeting out #adulting tips and jokes—but beware of adopting Millennial-speak. According to one social media expert, “if a brand can legitimately talk like a millennial or even a teenager, they can get away with using #adulting. Otherwise, it comes up as fake.” (Digiday

Fox’s Empire Snapchat lens not only garnered 61 million views, it also upped brand awareness for the series. Snapchat has officially released a few stats on their sponsored content in an effort to bring more marketers onto its platform, and reports that the Empire lens ramped up brand awareness by 16 points and increased tune-in intent by 8% when it ran in March. The lens, which “overlaid a graphic of a pair of headphones and sunglasses over Snapchat users' faces with a microphone that they could pretend to sing into,” was played 33 million times and used for an average of 20 seconds before snapping. (Adweek

Millennials may be the key to redefining beauty standards in the fashion industry. Despite criticism, fashion has been slow to diversify, and 80% of models booked for the Fall 2015 season were white. Tony King, a CEO of an advertising agency that works with luxury brands, believes the way Millennials consume content can spark change: “There used to be all these layers between what brands put out and what the consumer saw. Now with the rise of social media and the accessibility of platforms like Snapchat you see a true authentic voice.” While young consumers “are totally clued into a diverse voice,” many brands haven’t recognized their preferences. (Forbes

Millennials without college degrees could be “stuck renting for a long time.” New research is revealing significant hurdles for 18-34-year-olds without diplomas: college graduates without student debt will need on average five years of additional savings to afford a down payment for a starter home, those with student loans will need 10 years, and those who haven’t graduated college will need 15.5 years. Lower incomes are one of the main drivers for the trend, but Millennials without college diplomas are also less likely to get financial assistance from friends and family. (Wall Street Journal

Virtual reality is “inventing a new way to tell a story." A 360-degree app that tells the story of Cirque du Soleil's traveling Kurios show, has been referenced as evidence of how VR is poised to become a revolutionary tool for storytelling. The app puts users “in the center of the action,” spotlighting how the technology could be the “closest to teleportation we will ever have in our lifetime." Experts also claim that consumers will “actually create the greatest amount of [virtual] content for themselves and their friends,” because of VR’s power to let users relive important experiences like birthdays and weddings. (Recode

Quote of the Day: “I can’t live without my desktop computer because it can replace most of the other devices (media streaming, music playing, getting directions, staying in contact with friends, gaming...).”—Female, 25, SC

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