We often discuss and read articles that point out facts about how the millennial generation will impact the workforce. However, how are their own beliefs and pursuits after their own lives? In fact, how they see themselves may not actually be in line with their performances. Find out about their surprise below…
A super interesting article posted on LinkedIn discusses a recent finding which shows that millennials may be in for a surprise. In fact, where more than half of this generation believes they will be millionaires by the age of forty, the truth indicates that their riches may fall far below this mark. According to The Economist, “millennials are less wealthy than people of a similar age were in any year from 1989 to 2007” and they are not saving adequately for retirement. Wealth creation among this generation is diminishing and must be noted. So in order to begin understanding the gap between how millennials see their financial success and what seems to be the true picture, it’s valuable to understand where millennials are spending their wages!
- Food and Dining: A potential result of the push towards a healthy work-life balance can be seen among millennials as they frequent restaurants and social outings. Going out to dinner is no longer regarded as a special occasion, and may be an activity 3 or even 4 times per week! The costs of eating out add up super quickly and can comprise a large chunk of anyone’s budget.
- Housing: The desire to purchase a household is diminishing among these young adults. In fact, they can be seen as preferring temporary living at an even greater cost than generations who came before them. The Balance Careers indicated that, in fact, “millennials spend about 35% of their annual spending on housing, while Generation X spends 33% and Baby Boomers spend 31%.”
- Technology Fueled Expenses: Thanks to new software like Uber, millennials are spending large portions of money with just the click of a button. We may not even notice, but the way technology has impacted each of our lives is a huge result of the ease at which you can now purchase almost anything! Without having to put great effort into getting things done, it is easy for online expenses to add up and surprise you at a rapid pace.
There are many other clues which may begin to unravel the story as to why millennials are not saving as much as they should be in order to reach their financial goals. However, as we still pursue studies on these adults, it’s crucial to recognize that their behaviors may change and are constantly evolving. At Esquire, we promise to keep you up to date with all you need to know about generation-focused behaviors!
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Curious about other generations? Find out how Gen Z may impact your career here!