Despite the fact that almost a third of Millennials still live with their parents, and a large majority are unemployed, they still manage to spend $1 trillion annually, according to Forbes.
While they do not spend their money across the board, they do dig deep enough into the couch cushions to spend in three specific areas: technology, apparel, and food.
From the article:
In a recent MasterCard MA -0.85% survey, 53% of millennials ranked technology as their top passion. Computer and electronic stores were ranked among their top five spending categories.
Jason Dorsey, chief strategy officer at the Center for Generational Kinetics, said mobile phones reflect the level of status for millennials — those between ages 18 to 35. He calls mobile technology — like the smartphones and tablets offered by the likes of Apple, Samsung and others — the new “gateway purchase” that lets young people show they have money to spend.
It’s no secret that millennials are tech-savvy. But they especially love technology that meets their emotional needs, said Jeff Fromm, executive vice president of advertising agency Barkley and co-author of Marketing to Millennials: “Useful is the new cool,” he said. Brands incorporating technology to user experience, like Intel INTC -1.14%, Sprint Nextel S -0.47% and Sony SNE -1.18%, have been popular among the demographic.
Broadly, Generation Y looks for ways to get the most bang for their buck, said Kit Yarrow, a professor at Golden Gate University. And they spend more on technology because millennials feel they get more for their money when investing in these products.