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Millennials and Their Spending Habits: How It’s Shaping the World

Millennials and Their Spending Habits: How It’s Shaping the World

Millennials, also known as Generation Y, the 80’s and 90’s kid or those born between 1980 and 2000 are slowly changing the world economy as we see it today. By far the largest generation comprising of more than 70 million individuals in the United States, overtaking the population of baby boomers, Millennials are the most influential and promising group in shaping the modern world.

Their influence felt in areas such as science, math, and arts is redefining various industries, creating waves of change, and breaking ‘traditional ways’ to cater their new way of thinking and ideologies.

Having been raised during the time of rapid technological growth, Millennials have the most influence over old generations and are considered the biggest trendsetters of our world today. Despite being career-driven, skilled, and highly educated, Millennials are often considered financially doomed and unstable.

Graduating and going into adulthood during the economic recession, Millennials spending habits are affecting the economy in large measures especially in areas of marketing, finance and technology.

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The Death of Ads

Decades ago all you need to do was pour your money into advertising and your brand is setup for success. However, today, this isn’t the case anymore. Millennials and their incessant craving for authenticity have come to understand how sneaky advertisements can be. More often than not, messages used by advertisers are known to trigger emotional rather than rational responses among consumers.

It’s no wonder Millennials don’t trust commercials, and are often the ones who avoid and despise adverts in Facebook and other websites. Although, not generalizing, a  baby boomer might fall prey to adverts masquerading as good deals all over the media, but a millennial will be wiser and will know even in just one look which advert is authentic or not. This is not only making advertising a lot harder for companies, it’s also making them reevaluate their traditional marketing methods.

Brands and Social Media

It should also come as no surprise that Millennials prefer brands that interact with consumers on digital channels. Nowadays, it’s almost customary for brands to have their own Facebook and Twitter pages. Millennials want brands to be participative in terms of their experience. They want to engage with brands to learn more about the products.

The thing is: Millennials value authenticity. Content is good, but lack of authenticity may lead them to draw back from trusting a company or a site. They want blogs that connect with people. This is why social media is as much a growing industry today more than it was decades ago.

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The Rise of Online Shopping

The traditional way of shopping is slowly becoming a thing of the past. The convenience of online stores is drawing Millennials and making it hard for in-store retailers to keep up with their digital competitors.

Millennials are so fond of purchasing online; they would gladly wait a few days to get their order delivered, than to march on to the nearest mall or supermarket. Online shopping also allows them to be selective and be able to review their options wisely.

Renting vs Owning a House

The fall of economy has made a major impact on Millennials, many of whom are still having a hard time paying off their student loans, living with their parents, or are currently underemployed. This makes renting homes a far better option to this generation.

Millennials who are now in their early 20’s or 30’s are on the phase where they’d like to get married and start a family. However, they can’t afford to both start a family and own a house at the same time. Traveling which is a common millennial dream prevents them to settle down and buy a house of their own. All this makes renting a far better option than owning a house. .

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Growth of the Sharing Economy

Much of the sharing economy’s growth can be attributed to the Millennials. Millennials find the sharing practice not only thrifty, it’s also a great way to reduce consumption and space in the world. Think about it, why would you need to buy a house if you’re going to travel all the time? Why would you buy a nice ride, if you can ride one for a cheaper option?

James O’Connell, CEO of JDP, explains this behavior of Millennials from a mental standpoint.

He says, “Millennials believe in making a difference with their spending habits… Companies like Uber and Airbnb are doing so well because their business plan taps into that mindset so completely.”

Brands and Their Positive Impact in the World        

By nature, Millennials are inherently cosmopolitan. Growing up on the period of globalization and boom of technology, they are more attuned and interested to global issues. Thus, they also love to view their purchases through a global lens. In a recent study, Millennials were found to purchase more environmentally or socially responsible products and love to donate their money and time on charity.

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Brands have to give back something to society. At least that’s how Millennials believes it should be. Millennials are tired of corporate greed, after the world’s recovery of one of its largest financial crisis – they want to see more sharing and giving.

Through their unique but progressive ways, Millennials are preparing the world for the future. Everyone has their own opinions about this generation – but one thing is for sure: they are calling the shots now and the world will just have to listen.

Featured photo credit: Bench Accounting via unsplash.com

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Last Updated on August 6, 2020

6 Reasons Why You Should Think Before You Speak

6 Reasons Why You Should Think Before You Speak

We’ve all done it. That moment when a series of words slithers from your mouth and the instant regret manifests through blushing and profuse apologies. If you could just think before you speak! It doesn’t have to be like this, and with a bit of practice, it’s actually quite easy to prevent.

“Think twice before you speak, because your words and influence will plant the seed of either success or failure in the mind of another.” – Napolean Hill

Are we speaking the same language?

My mum recently left me a note thanking me for looking after her dog. She’d signed it with “LOL.” In my world, this means “laugh out loud,” and in her world it means “lots of love.” My kids tell me things are “sick” when they’re good, and ”manck” when they’re bad (when I say “bad,” I don’t mean good!). It’s amazing that we manage to communicate at all.

When speaking, we tend to color our language with words and phrases that have become personal to us, things we’ve picked up from our friends, families and even memes from the internet. These colloquialisms become normal, and we expect the listener (or reader) to understand “what we mean.” If you really want the listener to understand your meaning, try to use words and phrases that they might use.

Am I being lazy?

When you’ve been in a relationship for a while, a strange metamorphosis takes place. People tend to become lazier in the way that they communicate with each other, with less thought for the feelings of their partner. There’s no malice intended; we just reach a “comfort zone” and know that our partners “know what we mean.”

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Here’s an exchange from Psychology Today to demonstrate what I mean:

Early in the relationship:

“Honey, I don’t want you to take this wrong, but I’m noticing that your hair is getting a little thin on top. I know guys are sensitive about losing their hair, but I don’t want someone else to embarrass you without your expecting it.”

When the relationship is established:

“Did you know that you’re losing a lot of hair on the back of your head? You’re combing it funny and it doesn’t help. Wear a baseball cap or something if you feel weird about it. Lots of guys get thin on top. It’s no big deal.”

It’s pretty clear which of these statements is more empathetic and more likely to be received well. Recognizing when we do this can be tricky, but with a little practice it becomes easy.

Have I actually got anything to say?

When I was a kid, my gran used to say to me that if I didn’t have anything good to say, I shouldn’t say anything at all. My gran couldn’t stand gossip, so this makes total sense, but you can take this statement a little further and modify it: “If you don’t have anything to say, then don’t say anything at all.”

A lot of the time, people speak to fill “uncomfortable silences,” or because they believe that saying something, anything, is better than staying quiet. It can even be a cause of anxiety for some people.

When somebody else is speaking, listen. Don’t wait to speak. Listen. Actually hear what that person is saying, think about it, and respond if necessary.

Am I painting an accurate picture?

One of the most common forms of miscommunication is the lack of a “referential index,” a type of generalization that fails to refer to specific nouns. As an example, look at these two simple phrases: “Can you pass me that?” and “Pass me that thing over there!”. How often have you said something similar?

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How is the listener supposed to know what you mean? The person that you’re talking to will start to fill in the gaps with something that may very well be completely different to what you mean. You’re thinking “pass me the salt,” but you get passed the pepper. This can be infuriating for the listener, and more importantly, can create a lack of understanding and ultimately produce conflict.

Before you speak, try to label people, places and objects in a way that it is easy for any listeners to understand.

What words am I using?

It’s well known that our use of nouns and verbs (or lack of them) gives an insight into where we grew up, our education, our thoughts and our feelings.

Less well known is that the use of pronouns offers a critical insight into how we emotionally code our sentences. James Pennebaker’s research in the 1990’s concluded that function words are important keys to someone’s psychological state and reveal much more than content words do.

Starting a sentence with “I think…” demonstrates self-focus rather than empathy with the speaker, whereas asking the speaker to elaborate or quantify what they’re saying clearly shows that you’re listening and have respect even if you disagree.

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Is the map really the territory?

Before speaking, we sometimes construct a scenario that makes us act in a way that isn’t necessarily reflective of the actual situation.

A while ago, John promised to help me out in a big way with a project that I was working on. After an initial meeting and some big promises, we put together a plan and set off on its execution. A week or so went by, and I tried to get a hold of John to see how things were going. After voice mails and emails with no reply and general silence, I tried again a week later and still got no response.

I was frustrated and started to get more than a bit vexed. The project obviously meant more to me than it did to him, and I started to construct all manner of crazy scenarios. I finally got through to John and immediately started a mild rant about making promises you can’t keep. He stopped me in my tracks with the news that his brother had died. If I’d have just thought before I spoke…

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