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: “My favorite online celebrity is Jenna Marbles because she is hilarious and weird. I like how honest she is.”

— Female, 22, CA

Millennials are looking for multicultural products. According to a new Harris poll, over eight in ten 18-34-year-olds say they love exposure to different cultures, and about 32% say that purchasing and consuming foods with “multicultural flavors” is very important, compared to 27% of 35-44-year-olds and 45-54-year-olds. Almost half of Millennials also say they’re willing to spend more on brands that understand multicultural needs, and 65% agree they’re more likely to shop with a retailer that offers a wide selection of multicultural products.
(Drug Store News

National Geographic Kids is joining the chatbot revolution with a T-Rex bot. Tina the T-Rex is one of the latest bots to join Facebook Messenger, and was created to answer kids’ questions about dinosaurs. Tina’s ultimate goal is to sell subscriptions—she prompts users to sign up for the magazine at the end of conversations—and to let the brand get “into the mindset of its readers,” to form more personal relationships. Since Facebook accounts are limited to 13-year-old and older, National Geographic Kids hopes that, like their magazine, parents will use the bot along with their kids. (Digiday

Universal has discovered the “magic formula” to bring in Millennial dollars. According to a Foursquare analysis of foot traffic to theme parks, market share for Universal’s parks increased from 11% to 15-16% between 2014 to 2016, and almost half of the visitors during that time were 18-34-year-olds. Wizards and zombies are reportedly drawing in Millennials: Universal’s 2014 launch of the Wizarding World of Harry Potter spurred a 25% increase in visits mostly from Millennials for several weeks, and a recently opened Walking Dead attraction bought in 35% more Millennials than usual. (Skift

Brands who have jumped into VR may be making a very smart investment. A new survey from Greenlight VR reveals that over half of adult consumers say they are more likely to purchase from a brand that uses VR over a brand that doesn’t, most likely because 71% believe brands that use the technology seem more "forward-thinking and modern." Even consumers who have yet to try VR “had good things to say about the technology:” over nine in ten report “positive feelings” after watching an informational video on VR, 65% say they are interested in trying it, and 32% are surprised with its capabilities. (Adweek

GoldieBlox is continuing to go digital to spread the fundamentals of coding to kids. The educational brand “best known for its line of engineering toys aimed at young girls,” has launched their first paid app, GoldieBlox: Adventures in Coding. The puzzle-centric game follows Goldie, a young engineer delivering cupcakes, and asks players to “execute a sequence of commands,” to get her from one destination to another. The company has begun splitting their product development efforts between physical and digital, because “kids are spending increasingly more time playing on devices.” (TechCrunch

Quote of the Day: “You want me to list every concert I’ve been to in the past year? Are you nuts? I've been to like 30 so far this year.”

—Male, 29, NY

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