It’s no secret that millennials aren’t hopeful about money. Catastrophic events shaped their adult lives: 9/11, the 2008 housing crash, COVID-19. Big swings in housing and stocks, plus student loans, might make them feel this way.
Because of this, millennials use money differently than older groups. Let’s explore some of these differences.
Millennial Spending
Millennials spend based on values. They still buy basics, but they spend more on experiences, not just stuff.
Experiences vs. Material Goods
Millennials like to spend their money on experiences, like travel, instead of things. Saving for a home or retirement is still important. But most millennials (78%) would rather spend on experiences than on items.
Extras and Lifestyle Choices
Millennials spend more on some lifestyle things. They might buy organic food or craft beer, even if it’s pricier than normal brands. Convenient things like same-day delivery and Uber are also popular.
Millennials often spend money based on their values. Many buy eco-friendly, vegan, or cruelty-free items instead of whatever’s cheapest. They also spend more on personal growth, like fitness classes.
Taking on Debt
Millennials have a lot of debt. In 2024, 56% of millennials said debt other than housing was a problem. Also, millennials have credit card debt. A 2019 survey found that 65% of millennials with credit card debt are stressed about their balances.
Housing
Millennials with student loans and other money worries often wait or skip buying a home. A 2022 survey found that 24.7% of millennials plan to rent forever. This feeling of hopelessness is worsening. In 2018, only 13.3% had given up on owning a home.
Even with this trend, 45% of millennials own homes. This seems good, but it’s still 20% lower than Generation X’s homeownership rate.
Millennial Saving
Millennials save differently than older groups. On average, they have about $62,600 saved for retirement. This is a bit less than Generation X, and much less than Baby Boomers, who have $120,300 saved.
Reasons for Saving
Millennials save for lots of reasons. One report says 78% of millennials are saving for retirement. Also, 51% are saving to buy a home, and 66% save for emergencies, like job loss or surprise costs. Because they value experiences over things, millennials also save for experiences. A survey said 65% use savings for travel.
Saving Earlier
Baby Boomers, Generation X, and millennials all save. But they started at different ages. One survey said Baby Boomers started saving around age 32, Generation X around 30, and millennials around 24.
Investing
Besides saving for the future and retirement, millennials also invest to grow their savings. Data says they own about 7.8% of all stocks. This is worth over $1 trillion, which sounds big, but Baby Boomers still control 54% of the market, and Generation X holds 22%.
The Bottom Line
Millennials are different when it comes to money. They think about values and experiences. They save early and are getting into investing. They’ve faced tough times, and debt and housing are big issues. Even with these problems, millennials are finding their own way to handle their money for the future.
Frequently Asked Questions
Millennials, also known as Generation Y, are people born roughly between the early 1980s and the late 1990s. They are known as the generation that grew up with technology.
Debt is a real concern for many millennials. In 2024, over half (56%) said debt other than housing was a problem. This includes credit card debt, which stresses about 25% of millennials.
Millennials tend to start saving younger. Surveys show millennials start saving around age 24, while Baby Boomers started around age 32 and Generation X around age 30.
