According to Time Magazine, Millennials (those born between 1980 and the early 2000s) will have more buying power than any other generation by 2017. However, the way they plan on spending that money will be very different from the past. The reason, they say, is because they were raised during the Great Recession.
They don't have the money to spend lavishly, so they choose their spending wisely. Here's a list of 10 things a large majority of Millennials WON'T shell out the big bucks for.
1. Pay TV
Only 46% of people ages 14-24 consume the majority of their media on television. This makes sense, as the phones, tablets, laptops, etc. are taking over the world. Why doll out the extra bucks for TV when you can just get a Netflix subscription for way less?
Did the Great Recession scare Millennials out of investing on Wall Street? According to Time, Wells Fargo surveyed 1,500 adults between 22-32 years of age, and 52% stated that they were "not very" or "not at all" confident in the stock market as a place for investment for retirement.
3. Mass-Market Beer
Forget Coors, Bud, and Miller, Millennials prefer a good craft beer. Why? Well, it's cheaper, it has a higher alcohol content, there are more choices, fewer calories, and it's better for you! Makes sense, I guess.
Kids are getting less passionate about cars. According to the Atlantic, "In 2010, adults between the ages of 21 and 34 bought just 27% of all new vehicles sold in America, down from the peak of 38% in 1985." This seems extreme... we all need transportation, right?
It's not that Millennials don't want homes, it's that they can't afford them. More and more youth are living with their parents or renting apartments. While unemployment rates are decreasing, Millennials are still more likely to rent before they buy.
6. Bulk Warehouse Club Goods
If you don't have a car or a house, is buying a year's supply of toilet paper really practical? Not really.
Getting married young used to be a rite of passage. But, for today's youth it just seems like a big, unnecessary expense. It's not that they don't want to get married! They just can't afford it. In fact, Pew Research found that 69% of Millennials said they would like to get married but are waiting until they are more financially stable to do so. Consequently, only 26% of Millennials are getting married between the age of 18-32.
Kids are expensive. No doubt about it. But once again, it's not that Millennials don't want to have kids, it's that the recession has scared them away from it.
Studies show that only 42% of Millennials say they are planning on having children, which is significantly less than the 78% of the the youth of 20 years ago.
9. Health Insurance
According to a study done by the Kaiser Family Foundation, people ages 18-34 make up 40% of the uninsured population in the pre-Obamacare world. And now, 28% of Obamacare's 8 million users are people 18-34 years old.
However, Millennials are also the healthiest generation yet. In fact, many people in the health insurance world refer to them as the "invincibles."
10. Anything You Tell Them To Buy
With the help on online rating and recommendation sites, Millennials are far more likely to trust the advice of strangers than of their close friends and family.