Survey: Worry about financial future may chill millennial spending

NEW YORK — Marketers are increasingly focusing efforts on millennials to ensure future growth, but a new survey for Radius GMR shows that while millennials represent a significant share of consumers, continued general pessimism about their financial futures is driving conservative purchasing habits.

 

“Other than in a relatively few high profile industries like tech, millennials are not seeing significant job opportunities or wages increases,” Jamie Myers, Radius GMR's global director client services, said. “This should concern marketers looking for millennials to drive their businesses into the future.”

 

The majority of millennials (56%) surveyed by Radius Global Market Research are worried about having enough money to pay the bills every month. That worry intensifies among those who are parents, as they are spending significantly more across almost every category.

 

These financial matters are top of mind when young consumers are spending. Nearly half of millennials rank being financially secure as one of the top two factors considered in their decision to purchase.

 

The worry about finances at home carries over to their feelings about the financial future of the U.S. with millennial males being the most pessimistic. Nearly half millennial (49%) consumers are pessimistic about the country's financial future. And in millennial groups, males are significantly more pessimistic about the future (nearly 50% more) than females.

 

“Interestingly, the Radius GMR study showed that millennials on a budget will still spend on themselves as a treat,” Myers added. “Brands that position a product or service as a well earned or frugal splurge may increase engagement with these generally cautious spenders.”