Millennials are spending their money on 3 major categories


teen millennial selfieREUTERS/Michael SpooneybargerWhere are these young people spending their money?

By Business Insider

Forget about clothes and shoes.

We’ve known that consumers prefer to spend money on technology as opposed to apparel, but Jim Cramer (via Carl Quintanilla) has stated the three places where they’re actually choosing to spend their hard-earned cash.

Uber

uberReuters/Damir SagoljA phone running the Uber application is held above the traffic in central Bangkok Dec. 10, 2014.

Jason Dorsey, millennial expert of the Center for Generational Kinetics, told Business Insider in a note in January that millennials (and teens) prefer to spend money on experiences and technology.

Uber sits in the sweet spot between both of those categories.

More importantly, Uber highlights the millennial generation’s general distaste for owning anything.

“Battered by student loan debt and the Great Recession, Millennials place less emphasis on owning and more on sharing, bartering and trading to access coveted goods,” Jilian Mincer of Reuters reported last year. “These behaviors have propelled businesses such as car rental service Zipcar, taxi service Uber and home rental site Airbnb.”

Cell phones

cell phoneAhn Young-joonA visitor tries out a Samsung Electronics Co.’s Galaxy Note 4 smartphone during the 2014 Korea Electronics Show in Goyang, South Korea

Having a cell phone is a must for young people. In fact, a recent Harris Poll survey noted that quite simply, young people can’t function without their phones.

Phones often serve as chief modes of communication, and it’s not a secret that millennials love chronicling their lives on social media – almost as much as Generation Z.

Make up

SephoraAstrid Stawiarz/Getty Images

Young women love make up. When Goldman Sachs and Teen Vogue polled fashion forward women ages 13-29 to find out their favorite brands, MAC Cosmetics came out on top. Other cosmetic companies in the top ten included Sephora, Urban Decay, and Make Up For Ever, proving that young women have a strong affinity for cosmetic companies.

Source: Business Insider

-Hymer

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