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Millennials are defined as individuals who were born between 1981 and 1995. This generation is a powerful force since it represents the majority of the adult population in the United States. They are the first generation to grow up in the digital age. Because of the purchasing power of this generation, this generation is very essential to any business owner. Marketers cannot afford to overlook the collective purchasing power of millennials. They should search for methods to pique the attention of this highly educated and critical generation by presenting themselves in novel ways.

In order to engage with this generation on a deeper level, companies must first understand their financial and spending patterns. For brand managers and all investors who want to gain significant profits from the emergence of this strong generation, this article will be very useful.

Editor’s Takeaways

  • There were 72.1 million Millennials in 2010 making them the largest living generation.
  • The global annual income of Millennials is projected to be more than 4 trillion dollars by 2030.

(Source: Pew Research Center)

  •  Almost 29% of US millennials say financial planning makes them feel excited and inspired.
  •  57% of the millennials consider themselves disciplined financial planners.
  • Only 40% of Millennials indicated that they have good clarity on how much they can afford to spend versus how much they should be saving for the future.
  • 78% of Millennials said that they felt pulled apart by the pressure to find the right balance between present and future financial responsibilities.
  • Nearly 29% of Millennials said they felt afraid, uncomfortable, or guilty spending money even when they can afford to.

 (Source: North Western Mutual)

  • 44% of the millennial population was moderately satisfied and 28% were not satisfied at all with their assets, debts, and savings in 2018.
  • 58% of millennials earn less than 50,000 USD annually.

(Source: TIAA Institute)

Millennials’ Income Statistics

Statistics in this section will give you a clear picture of the earning power of millennials.

1.  Households, where the head is a millennial with a bachelor’s degree or higher, have a median adjusted household income of roughly $105,300 while households headed by high school graduates earned roughly $49,363.

(Source: Pew Research)

There is a significant gap between Millennials who have received a college education and those who have not had one. When comparing what baby boomers earned at the same age in 2017, they earned between $80,552 and $95,182 for degree holders and between $51,287 and $54,026 for those without degrees. Millennials with a college degree are better compensated than their predecessors, the baby boomers. On the other hand, millennials without a college degree earn less than what baby boomers without a college degree earned at the same age in 2017, according to the Bureau of Labor Statistics.

2.  In 2018 the average Millennial salary was $47,034 annually based on mean income data for both sexes and all races, including white, Hispanic, black, and Asian.

 (Source: Smart asset)

The median income is $905 per week, which is the national average. As a result, it is projected that the average income of a millennial today is 20 percent lower, in real terms, than the average salary of a baby boomer at the same age. Families led by millennials are more likely than any other generation to be living in poverty. Millennials also made for the majority of renters in the United States.

3.  By 2019, the average Millennial had a net worth of $8,000.

(Source: The Washington Post)

The net worth of the majority of Millennials is much lower than the net worth of previous generations at the same age. The majority of Millennials are experiencing financial difficulties.

4.  In 2019, 62% of millennials said they were living paycheck to paycheck.

(Source: Schwab)

A little more than two-thirds of millennials live from one paycheck to the next. An April 2019 Charles Schwab poll of 380 young adults aged 23 to 38 years found that just 38 percent consider themselves to be financially secure, according to the poll.

Millennials’ Financial Literacy Statistics

Statistics in this section will help you understand how millennials fair in managing their money.

5. 43% of the affluent millennials surveyed in 2019 sought the services of a financial advisor before investing.

(Source: Investopedia)

Nearly half of the affluent millennials seek professional advice before investing. They trust and hire financial advisors.

6. 27% of those who reported using financial advisors said that their investments performed well compared to 13% who did not hire financial advisors.

(Source: Investopedia)

Affluent millennials who had high-performing assets and who had employed financial advisers outperformed those who did not engage financial advisors by a factor of two, according to the study.

7.  About 65% of the flush millennials trusted financial experts, compared to only 58% of Gen Xers.

(Source: Investopedia)

Millennials have a higher level of confidence in financial advisers than Generation Xers. Books are also trusted by 58 percent of millennials, as are 54 percent of television programs, 53 percent of newspapers, and 49 percent of radio. When it comes to financial advice, 48 percent go to periodicals, 37 percent to websites, and 27 percent to video platforms such as YouTube for guidance.

8.  46% of the Millennials whose parents were good money managers said that they were confident in managing money compared to 30% of those whose parents were not good at managing finances. 

(Source: Investopedia)

Early financial education instills better confidence in the ability to manage one’s finances in later life. In many cases, how wealthy millennials felt about managing their money mirrored how well their parents handled their own financial affairs. The majority of wealthy millennials whose parents were excellent money managers reported feeling worried when it came to managing their own money as adults, compared to just 9 percent of those whose parents were not effective money managers.

9.  Only 16% of millennials correctly answered the Big Three financial literacy questions compared to 34% of older working-age adults.

(Source: TIAA Institute)

Millennials have a relatively low degree of financial knowledge, which is particularly concerning. Despite the fact that the elder generation constitutes a small proportion of the population, the millennials’ position is dire. Financial knowledge and abilities, as well as the ability to navigate solidly in a world of financial uncertainty and risk, are essential for financial achievement.

10.  Only 32% of millennials answered the risk diversification question correctly while 48% did not know the answer.

(Source: TIAA Institute)

This was the only question in which the greatest proportion of respondents said that they were unsure about the answer across the board, across all questions. Reduced financial knowledge among millennials has the potential to exacerbate their financial worry and stress while also placing them in a vulnerable position to withstand a financial shock.

11.  While 62% of millennials believed they had high, financial knowledge and 68% claimed to be good at dealing with day-to-day financial matters, only 19% of both of those subsamples correctly answered the Big Three questions.

(Source: TIAA Institute)

This misalignment between perceived and real financial knowledge may make it more difficult for millennials to participate in financial education initiatives in the future.

Millennials’ Spending Trends

The following statistics show the spending trends among millennials.

12.  A 2018 Rentcafe study revealed that millennials spend 45% of their income on rent between the ages of 22 and 30.

 (Source: RentCafe)

The rental burden suggested should be 30%. Thousands of children pay $92,600 in total rent at the age of 30; that is far more than Baby Boomers spent at the age of 30. Around 36 per cent of baby boomers’ wages was paid on rents at the same age, while Gen Xers rented 41% of its wages.

Younger Millennials between the ages of 22 and 29 in 2020 paid more money than older Millennials between the ages of 30 and 40. Joung millennium renters paid a median amount of $97,400, or nearly $7,000 less than younger millennia, before reaching 30, which was 47 per cent. When elderly millennia renters paid around $90,500, or 44 per cent.

13. A 2019 study showed that 48% of millennials spent money due to peer influence compared to 41% of Generation Z.

(Source: Schwab)

The Modern Wealth Index Survey 2019 reported that almost half a millennium would spend money just to meet up with pals. Their spending behavior was affected by social media in 49% of thousands of years.

14.  60% of Millennials spend four US dollars on coffee, 70% of them eat at the hip restaurants in town, 69% buy clothes not just as a basic need and more than 50% of millennials spend money on taxis and Ubers.

(Source: Forbes)

Millennials are more likely to spend their money on comforts and conveniences. Millennials spend an average of more than $3,000 each year on dining out. They spend about $2,008 each year at coffee shops, which is more than they set aside for their retirement savings account.

15.  Millennials allocate 13.5% of their expenditures to food and 1% of their annual expenditures to alcoholic beverages.

(Source: Marketing charts)

Millennials spent a higher percentage of their income on food, compared to 12.9 percent of all people. They also spent more on alcohol than the national average, which is 0.9 percent of their total expenditure on alcohol. The most expensive drinkers were Generation Xers, who spent an average of $633 per year on alcohol. Baby Boomers spent $595 per year and Millennials spent $521 per year. This implies that millennials consume much less alcohol than previous generations.

16.  86.2% of the millennials made online purchases compared to 79.2 Generation X and 62.1 baby boomers.

(Source: Statista)

As of May 2020, this statistic depicts the rate of digital buyer penetration in the United States, broken down by generation. Online shopping was found to be the most popular activity among millennial internet users, with an 86.2 percent penetration rate, according to the findings of this research. This generation likes to do their shopping in the privacy of their own residences. Millennials spend more than half of their money online, according to expenditure data from the generation that came before them. A large percentage of them said that the reason for this choice is that they compare the features and pricing of different products. It is also simpler and more convenient for consumers to do their own research or contact customer service through email rather than visiting a physical shop and asking staff for assistance.

17.  In 2010, 75% of millennials donated to friends or nonprofit organizations since the Covid-19 pandemic began, according to payment app Zelle’s September Consumer Payment Behaviors report.

(Source: CNBC)

This was the highest rate of any of the generations that took part in the survey. With a 66 percent giving rate, Generation Z was the second most generous generation, behind only Generation X and baby boomers.

18.  57% of millennial women make purchase decisions based on a brand’s values and its stand on issues that are important to them.

(Source: Business Wire)

A total of $170 billion in purchasing power exists among millennial women in the United States, accounting for 85 percent of the overall purchasing power of millennials in the United States. The social responsibility of a company is very important to them.

19.  Positive customer service experience is an important factor to 50% of millennials’ loyalty to brands

(Source: Morning Consult)

Millennials tend to be loyal to brands that give positive care to their customers.

20.  30% of millennials feel loyal to brands with 60% of millennials say holding relationships with specific brands for 10 years or more.

(Source: Inmoment)

Millennials tend to be very loyal to brands that meet their expectations such as values and good customer service.

21.  70% of millennials will go out of their way to buy from a brand that they are loyal to.

(Source: Inmoment)

Millennials’ purchasing choices are not only based on the quality of the product or service, or even the convenience with which it may be purchased, but rather on brand loyalty. Almost three-quarters of millennials will dedicate their time and attention to buying from a particular brand to which they are loyal, according to a recent study by Nielsen.

Millennials’ Saving and Investing Trends

Below are statistics on millennials saving and investing trends you should know.

22.  According to the Investopedia Affluent Millennial Survey, 46% of millennials were not saving enough money, and 39% expected to be forced to work beyond retirement age.

(Source: Investopedia)

Only 39 percent of millennials felt that they were sufficiently prepared for retirement, compared to less than half of those who were not saving enough money at all.

23.  Only 37% of affluent millennials felt knowledgeable about investing.

 (Source: Investopedia)

Less than half of wealthy millennials are confidence in their ability to save and prepare for their retirement. Trepidation about stocks and a lack of understanding about investing are two key reasons contributing to the financial phobias of affluent millennials, according to a recent study.

24.  High-income millennials who feel knowledgeable about investing are 73% more likely to feel very confident in their ability to make their own financial decisions compared to 14% of those who are not knowledgeable about investing.

(Source: Investopedia)

Young adults with significant wealth who consider themselves financially savvy are five times more likely to connect investing with pleasant feelings and are less likely to find it frightening, dangerous, or overwhelming than older adults.

25.  Millennials are 37% less likely to own stock than 47% likelihood for Gen X to own stocks

(Source: Investopedia)

Affluent millennials have a longer time frame in which to invest and recover losses, but they have shown a high level of prudence when it comes to investing. It was found that they were as likely as Gen X to hold bonds (19 percent vs 18 percent), and that they were more inclined to direct a portion of their income to a low-yield savings account (21 percent versus 16 percent ).

26.  Only 32.2% of millennials are homeowners in comparison to 60.4% of Gen Xers and 75.0% of baby boomers. 

(Source: Urban)

According to the Urban Institute’s study report, just around one-third of millennials are homeowners, compared to more than half of Gen Xers and baby boomers who own their own houses. A significant percentage of millennials in the United States are delaying house ownership until they have sufficient money. The proportion of millennials who purchase a house between the ages of 25 and 34 is about 9 percent lower than the rate of baby boomers.

27.  73% of millennials surveyed for the 2020 report said they were saving, compared to 63% of those surveyed in 2018.

(Source: Bank of America)

Millennials were saving in 2020 than ever before. This could be because of the lessons learned after the Covid-19 outbreak.

28.  Of those millennials with savings, 59% had $15,000 or more saved in 2020, compared to 47% in 2018.

(Source: Bank of America)

According to the findings of the research, millennials who had saved $15,000 or more in 2020 were 12 percent more likely to have done so than those who had saved the same amount in 2018.

29.  In 2020, 24% of millennials with savings had $100,000 or more, while 16% percent of respondents saved the same amount in 2018.

(Source: Bank of America)

From 2018 to 2020, the number of millennials with emergency funds totaling $100,000 rose by 8 percent.

In 2018, the top financial goals for millennials were to save enough money for a major life event such as marriage, education, or purchasing a home, compared to 53 percent and 55 percent of Baby Boomers and Generation Xers, respectively, who prioritize debt repayment.

(Source: North Western Mutual)

The top financial priority for millennials is to save for their lives’ milestones whereas Baby Boomers and Gen Xers prioritize paying off debt.

Millennials’ Debt Burden Statistics

In this section, you will find statistics on the debts that millennials struggle to pay.

30.  By 2018, millennials had an average of $36,000 in debt on which they put 34% of their monthly income toward paying it down.

(Source: North Western Mutual)

It is noteworthy that the average debt load of millennials is similar to that of baby boomers and somewhat less than that of Generation Xers, who have a debt burden of $39,000. Education loans, which account for 21% of millennial debt, and credit card bills, which account for 20%, are the two most common sources of debt. Mortgages, followed by credit card debt, are the most common forms of debt for both Generation Xers (32 percent) and Baby Boomers (32 percent) (25 percent ).

31.  By 2013, millennials had 300% more student loan debt than their parents, and they were half as likely to own a home as a young adult was in 1975.

(Source: Huffpost)

Millennials are burdened with a significant amount of student loan debt. The majority of them will not be able to retire until they reach the age of 75. This may possibly be the primary explanation for the high rate of homeownership within this particular demographic group.

32.  According to Pew Research Center, the number of households with student loan debt doubled from 1998 to 2016.

(Source: Pew Research Center)

Millennials, as a generation, have accumulated more debt than preceding generations did at the same age. Student debts are a significant contributor to this predicament. The median amount of loan debt held by millennials was $19,000, which is considerably greater than the median amount of loan debt carried by Generation Xers at the same age of $12,800.

Final Thought

Older millennials have behaviors that are comparable to those of generation X, while younger millennials have habits that are more similar to those of generation Z. The majority of studies indicate that millennials place a higher value on experiences than on material possessions. In terms of food, beverages, and travel expenses, they are ready to spend more money.

In accordance with previous research, social media has a significant impact on the purchasing patterns of millennials. This is due to the fact that social media forces people to compete with their peers.

The Bureau of Labor Statistics also showed that millennials are in worse financial shape than their predecessors, the baby boomers and Generation Xers. They owe more in school loans than Generation Xers did when they were their age. This has a negative impact on their credit score and their ability to purchase a house.


Q: Who are millennials?

Answer: Millennials are sometimes referred to as Generation Y. These are individuals who were born between 1981 and 1996. They are presently between the ages of 25 and 40 in 2021. In the United States, there are about 72.1 million millennials. Millennials may be split into two groups: Gen Y.1, who are between the ages of 25 and 29, and who account for about 31 million people in the United States; and Gen Y.2, who are between the ages of 29 and 40, and who account for approximately 42 million people in the United States.

Q: What was the spending power of US millennials in 2020?

Answer: A research by McKinsey & Co shows that US millennials spent about $200bn in 2020.

Q: What are the spending habits of millennials?

Answer: Millennials spend a lot on online shopping and takeaway food. They spend less on housing and cars than previous generations.

Q: How much money do millennials spend on coffee in the US?

Answer: According to a study conducted by the money app Acorns, millennials spend an average of $2,008 a year at coffee shops, with 41 percent of millennials confessing that they spent more on coffee in the preceding year than they had put in their retirement accounts in the previous year..

Q: What are the years of birth of the six generations?

Answer: The following are the names of six generations in the United States, along with their respective birth years. People born between 1946 and 1964 are referred to as Baby Boomers. People born between 1955 and 1965 are referred to as Generation Jones, and those born between 1977 and 1983 are referred to as Xennials. People born between 1981 and 1996 are referred to as millennials, and people born between 1997 and 2009 are referred to as Generation Alpha..


Pew Research Center

North Western Mutual

TIAA Institute

Pew Research

 Smart asset

The Washington Post



TIAA Institute




Marketing charts



Business Wire

Morning Consult







Bank of America

Bank of America

Bank of America

North Western Mutual

North Western Mutual


Pew Research Center

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