Millennials Prefer To Spend On Experiences Rather Than Material Objects
Last month we covered a new study that showed millennials save more than any other generation. But what are they saving for?
New data shows that the millennial generation is showing a proclivity for consuming experiences rather than goods—some say that millennials are driving the evolution of a new experience-based entertainment sector.
In a survey by Event Brite, millennials overwhelmingly preferred spending their money on experiences, rather than buying material objects.
In fact, 3 in 4 (78%) say they would rather spend money on experiences rather than buying something otherwise desirable.
Millennials are all about making memories.
This makes sense given that 82% of millennials also reportedly attended or participated in some sort of experience-based purchase, such as a festival, concert, or sporting event.
This surpassed the rate of experience purchases for older generations (70%), despite their higher incomes.
This trend is likely to continue, according to the data provided by Event Brite.
Over half (55%) of millennials say they are now spending more money on experiences than they ever have before, and 72% predict that they will spend even more money on experiences, rather than material possessions, in the upcoming year.
This is great news for everyone involved in producing these experiences, since millennials contribute trillions of dollars to the economy in terms of spending, and this will only go up.
Money will be made—time to invest in escape rooms.
What Drives Millennial Buying Habits?
What’s driving millennials to spend so much of their income on experiences, rather than products?
It seems that the fear of missing out (popularly known as FOMO) drives many of these purchases.
Almost 7 in 10 (69%) millennials experience FOMO, and this seems to be linked to their spending habits.
The same sample showed the the majority of millennials (77%) say at least some of their best memories come from live events, or similar experiences.
It may also be a reaction to the isolation many people, especially young people, feel when surfing the web, or working on a computer.
Experiences connect us to our communities and friends. This is reflected in the data: 69% of millennials say that experiences help them feel more connected to the world as a whole.
Millennials should enjoy experiences while they can, but unfortunately they’ve drew the short straw economically and are already much worse off than previous generations. Given that, it could be that the good times won’t last.
Time will tell.