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Millennial consumers worry more, spend less?

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Millennial consumers worry more, spend less?

Survey indicates that financial anxiety continues to impact younger consumers' purchase habits.

Marketers are increasingly focusing efforts on Millennials to ensure future growth. But a new survey conducted by research firm Radius Global Market Research shows that while Millennials represent a significant share of consumers, their continued general pessimism about their financial futures is driving conservative purchase habits.

"Other than in a relatively few high profile industries like tech, Millennials are not seeing significant job opportunities or wages increases," says Jamie Myers, Radius GMR's Global Director of Client Services. "This should concern marketers looking for Millennials to drive their businesses into the future."

Millennials feel like "Generation Broke"
The majority of Generations X (55%) and Y (56%) are worried about having enough money to pay the bills every month. That worry intensifies for those who are parents as they are spending significantly more across almost every category.

"This should concern marketers looking for Millennials to drive their businesses into the future."

These financial matters are top of mind when young consumers are spending. Nearly half of Gen X and Gen Y rank being financially secure as one of the top two factors considered in their decision to purchase.

The worry about finances at home carries over to their feelings about the financial future of the U.S. with Millennial males being the most pessimistic. Nearly half of Gen X (40%) and Gen Y (49%) consumers are pessimistic about the country's financial future. And in both Gen X and Gen Y groups, males are significantly more pessimistic about the future (nearly 50% more) than females.

"Interestingly, the Radius GMR study showed that Millennials on a budget will still spend on themselves as a treat," adds Myers. "Brands that position a product or service as a well-earned or frugal splurge may increase engagement with these generally cautious spenders."

 

 

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