- Experts say millennials face an uphill financial battle.
- But affluent millennials say they’re in their spending era.
- They spend their money to buy quality, time or beauty.
Not all millennials are screwed. Some of us are in our crazy times.
Pessimistic headlines on the wealth of American millennials do not paint the full picture. Despite student debt and rising interest rates, 51.5% of millennials now own their homeand if my group’s lyrics are any indication, people of this generation are eager to experience the finer things in life.
In other words, affluent millennials – or WOM – exist and they are spending.
As we get older, get better paying jobsand some of us consider giving up childrenIt’s no surprise that our tastes change and elevate, sometimes in unexpected ways compared to previous generations.
Successful American millennials seem willing to spend money on things that generally fall into three categories: quality, beauty, or things that save them time.
Quality
Overwhelmingly, when I asked my friends and colleagues what they were splurging on, they talked about investing in quality items, especially in terms of comfort.
They no longer buy cheap winter boots when the expensive version protects against the cold. Homes once decorated with Ikea furniture are now adorned with brands built to last. Shirts that fell apart in a few wash cycles are being replaced with designer clothes that make them look good and feel good.
“There comes a point in your 20s when every man has to rent a wood chipper for all the American Eagle shirts he’s worn in the last decade,” a colleague told me.
Julia Mills is a 30-year-old millennial and college English teacher based in Canada who posts on fashion on TikTok, where she has more than 660,000 followers. Mills’ videos often focus on how millennials can update their wardrobe. She said she leans toward quality products that will last for years, like a good coat or new jeans.
“It’s definitely a slow process — you can’t overhaul your wardrobe overnight,” Mills said, adding that it’s good to have these crazy pieces if they fit your lifestyle and to your budget.
Fashion aside, affluent millennials are also spending on smaller luxuries, like high-end bedding, flight upgrades on vacation, and nicer hotels — or something as small as more refined soap.
At the same time, American millennials are aware of the impact of their purchases on the climate, which was not necessarily a priority for previous generations. People I spoke with say they buy high-end products, whether new or used, with the intention of making them last longer so they produce less waste.
Julie Sousa — a millennial who posts about interior design and DIY tips to his 2 million followers on TikTok – said social media has raised consumer awareness about concepts such as sustainability. Sousa said most of the comments she receives on Instagram and TikTok are from people asking how to avoid waste and plastic.
“The more we learn about what we put in our homes, the smarter consumers we become,” Sousa said.
Beauty
The youngest millennials were born in 1996 – so they are only a few years away from reaching their 30s.
Those of us who are already there worry about the effects of time and gravity on our bodies.
Millennials I spoke to said they were spending money on dermatologist consultations and prescriptions, fillers, Botox, eyelash extensions and microneedling.
“A lot of people burn candles on their faces,” a friend from Wisconsin told me.
I fall into this camp myself. I have a dermatologist I swear by and a skin regimen that includes prescription products you can’t find in the aisles of Sephora. And like many of my peers, I’m not afraid to one day go under the needle and get Botox, thanks in large part to celebrities and influencers who are more open about their own, rapidly changing procedures technology and techniques.
Dr. Lisa Chipps, a California dermatologist, said her patients are more likely to invest in higher quality products and procedures such as preventative Botox, laser treatments and lip fillers.
“Twenty years ago, what happened in a dermatologist or plastic surgeon’s office was a mystery,” she told Insider. “Now people are more aware of their options, thanks in part to social media.”
For many millennials, undergoing these types of anti-aging procedures is the norm, thanks in part to our new work-from-home culture.
“Remote staff now have the option to undergo a procedure, continue working, but without having to travel two hours round trip to their job,” said Dr. Gregory Greco, a member of the American Society of Plastic Surgeons. He added that this age group is not necessarily embarrassed about having a procedure, but is using working from home as an opportunity to heal in a more private way.
Most beauty consumers are still women, but men are now getting in on the action too. Both doctors said they have seen an increase in millennial male patients coming in for Botox or fillers.
That said, doctors emphasized that while these types of interventions may be all over your social media, they are still medical procedures and should be taken seriously.
“Even though convenience exists, it comes with risks,” Greco warned. “Make sure you choose a competent practitioner and have done your homework.”
Time
The older we get, the less time we have.
Children, work, aging parents and other household responsibilities take up a lot of space. The average millennial is now entering its “sandwich generation” era and ready to spend lavishly to have more time for them.
Colleagues and friends said they spent money on housekeeping, babysitters, elderly care, dog walkers and smart home features.
Thumbtacka website where consumers can find professionals to hire for various tasks, said it has seen increased demand year over year for house cleaning services (up 11%), lawn mowing (up up 15%), furniture assembly (up 31%), and gardening (up 32%).
David Steckel, Thumbtack’s home expert, said many millennials feel less shame about hiring help than previous generations, in part because they know what their time is worth.
“It’s more cost-effective to have someone do it for you,” he told Insider. “There’s a whole ‘do it for me’ movement at the moment.”
While they’re not spending money on products or services, these millennials are investing with an eye toward retiring early and having financial freedom later in life. Although it goes against conventional wisdom, millennial retirement actually seems rather pink.
“Millennials are a little more willing to take risks when it comes to actually investing their money, whereas other generations’ mentality was ‘Let me hide my money under my mattress to save it,’” Tiana Patillo, Head of Financial Advisors at Vanguard. , said.
She said companies are doing more to incentivize workers with 401(k) and matching programs and that social media has become a great equalizer in financial education, putting investing information just a click away. and the growth of wealth.
“We were trained in a world of technology,” said Patillo, a millennial herself. “A lot of information is available to us, instead of going to the library and doing research like our parents had to do in the old days.”
So, yes, the housing market is looking terrible, student debt is a real problem and inflation is rising, but don’t pity all American millennials: despite these obstacles, many are finding a way to live large.
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