When every third post on your Facebook feed is a cheery announcement of a friend sporting a shiny new diamond ring, and you’re spending a good portion of your salary on modest cocktail dresses and monogramed towel sets, you know it’s wedding season. For millennials, it’s a season that’s been a little slow to get started.
Economists are psyched for millennials to get married and the positive impact their changing spending habits will bring. Not only are weddings a multibillion-dollar industry, but they lead to bigger purchases like homes, cars, and the biggest expense of all: kids. And with a population of 83.1 million, the millennials are the biggest generation in US history. But until this point, there was a fear that the socially connected generation was forgoing a trip to the altar all together.
Millennials are Finally Ready to Settle Down
In 1968, 56% of adults age 18-31 were married and living in their own home. In 2012, that number dropped to just 23%. Even scarier, starting in 2010, 29.9% of millennials ages 18-34 years old were living with their parents and that number has been steadily growing.
Turns out, there was no need to panic; Goldman Sachs reports that 70% of millennials want to get married in the future. 74% want to have kids and 93% of renters plan to buy a home. Bonus: we are willing to spend more on furnishings than previous generations.
The cause for delay of these major life events and purchases is the economy. The entire generation is experiencing lower employment levels and 64% less income to spend versus previous generations (Bureau of Labor Statistics) and average more than $20,000 in student loan debt alone (Federal Reserve). So there’s less money to spend, more debt to pay off and an extremely large inclination to hold off on being an adult.
Millennial Spending Habits Expected to Impact Many Industries
As a result, the median marriage age for millennials has risen to 30 in 2010, seven years older than the median age in the 1970s. Now that some time has passed and millennials have grown a bit older and more comfortable with their pocketbooks, big life events and large purchases are starting to feel manageable.
These big purchases are going to hit the market soon, and they’re going to trickle down into smaller purchases. Real estate, appliances/retail, insurance, credit cards, loans and other industries are going to feel the effect of the $600 billion annual spending power of the millennial generation ready to take the next step into adulthood.
If you haven’t prepared yet, now is the time to get your marketing plans ready for this monumental shift in millennial spending habits. The first step is learning how to best catch the eye of an advertising-fatigued population. It’s not easy, and research shows that millennials have made drastic changes to how they shop and buy versus previous generations. Keep reading SpeakingDIRECT for the latest direct marketing tips and tricks to get your cash register ringing along with those millennials church bells.
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