It’s pretty much a given that different generations will spend their money differently. In recent years, though, that divide seems to be lessening in some regards. Sure, the nature of the purchases may be quite different, but every generation is watching their money a little more closely as the effects of the pandemic continue to control aspects of the economy.
If you look at some recent stats that have been gathered by Canadian agencies, it paints an interesting picture. Some are a bit contradictory, but there is a clear theme: caution for living beyond their means, whether that’s by default or design.
Here are some of the more recent stats that are out there on millennials, as reported recently in The Globe and Mail. Note that we’re talking about people born between 1981 and 1986.
- KMPG reported that 72% of Canadian millennials want to buy a home, while 46% see that as unrealistic. That’s close to half.
- TD Bank’s survey showed that 32% of millennials are concerned about not having retirement or pension income.
- Statistics Canada data shows that millennials are earning more than Gen X or Boomers, but also are spending significantly more on necessities, particularly housing.
- CIBC surveyed people between ages 25 and 34 and found that 38% decreased spending during the pandemic, while 36% had increased spending. Another 35% percent — likely some of the same from these groups, said they want to “use extra money to save for a specific goal.”
Saving is taking precedence
All of this points to a trend for more savings than indiscriminate spending, especially as the pandemic continues. The chief strategy officer at Semrush was interviewed by Global News, and he states that nationwide increases in searches for banks point to this trend as well.
“They are using the pandemic to plan out their finances to either mitigate their financial insecurity or improve their financial security,” Levin says.
A writer for the Globe and Mail named Brianna Bell also points out that even though millennials are the largest generation in the workforce, it’s not with the same attitudes as their parents.
“A non-exhaustive glimpse of our regular expenses includes our monthly mortgage and housing costs, ever increasing grocery bills, daycare and summer camp fees, retirement savings and our eldest daughter’s expensive orthodontist bills,” Bell writes. “We are lucky enough to own our car, have a small line of credit and no postsecondary education debt.
“Still, when I compare myself to my own baby boomer mother, it feels like we’re failing when it comes to financially providing for our children and future.”
Empathy is still important
What this comes down to is that perception of personal wealth colors how attitudes toward money are shaped, and for millennials, it can be driving them to spend less.
Clearly, at the heart of this effort is the empathy for a consumer’s situation that should drive any discussion around debt and how it affects people. At ARO, we also know how to help you navigate these kinds of conversations. We make it our purpose to reconcile debt with an approach that puts people first. Find out more about what we have to offer businesses on our website.
