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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Quote of the Day: “My 2017 resolution is to improve my dog's confidence- She's somewhat fearful.”—Female, 28, PA

At some malls, teens “have worn our their welcome.” Cases of teens banding together on social media and going to malls to create chaos have reportedly been increasing over recent years. To avoid giving consumers another reason to shop online, some shopping centers—105 in the U.S. according to the International Council of Shopping Centers—have responded by imposing curfews and bans on the young consumers. The legality of such restrictions has been called to question, with the ACLU working to fight discrimination at play. (LA Times)

Millennial parents are getting by with a little—ok, maybe a lot—of help from their own parents. A TD Ameritrade survey has found that 19-37-year-olds who have kids get $11,000 on average from their parents through financial support or unpaid labor, and more than half get assistance through childcare or housekeeping weekly. But the assistance isn’t one-sided: three-quarters of 50-70-year-olds with Millennial children say they’re glad to help, and four in ten Millennials say they help their parents too, with an average of $2000 in 2016. (USA TODAYBusiness Wire)

The NFL is looking outside their traditional playbook to reach young fans. The league has partnered with AwesomenessTV for In The NFL, a new series that “lifts the curtain” to give a behind-the-scenes look at the sport. Since "a 17-year-old girl doesn't want to watch the same content as her mom or her dad,” some episodes have a young female focus, with one starring YouTube stars the Merrell twins taking a tour of a stadium, and another featuring one of the few female owners in the NFL, Kim Pegula, offering career tips to young women. (Adweek)

Can the future generation of shoppers save brick-and-mortar retail? Maybe. A new IBM and National Retail Federation study has revealed that 67% of 13-21-year-olds shop in-store most of the time, while another 31% occasionally buy from them. One analyst notes that their desire for “hands-on experience” is setting their preferences, but lack of credit cards and life stage are also likely forces deterring them from online shopping—and we predict that if fintech solutions are developed with teens in mind it could be a fatal blow for physical teen retailers. (RackedBusiness Wire

The sharing economy may be impacting Millennial spending. Research by Hammerson and retail consultant Verdict found that more than half of Millennials used a sharing economy business like Uber or Airbnb in the last year, compared to 16.2% of those over 35-years-old. Nearly a quarter of Millennials say they aren’t concerned about home ownership and would be content with renting for the rest of their lives, and when compared to those over 35-year-olds, they're two times more likely to agree that there are some products they don’t need to own and would prefer to rent. (Forbes

Quote of the Day: “My 2017 resolution is to live my life the way Carrie Fisher would have wanted me to.”—Female, 21, TX

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