New Survey from Worth Media Group and BCG of US Consumers
Uncovers How Wealthy Millennials Spend and Manage Their Money, and
Examines How Their Spending Differs from Older Generations
NEW
YORK, June 13, 2024 /PRNewswire/ -- Millennials
recently overtook baby boomers as the largest generation in the US.
As millennials enter their 30s and 40s, they're coming into their
full spending power—and they're ready to show off.
According to a new survey, 70% of wealthy millennials expressed
concern for their image and how others perceive them, 63% said
their spending is influenced by public figures, and 54% liked to
showcase their wealth and accomplishments.
Today, Worth Media Group, in collaboration with Boston
Consulting Group (BCG), released a summary of the findings from
their new study, titled Worth's Millennial Mindset Report:
How Wealthy Millennials Earn, Invest, and Spend. The
report is based on a survey of nearly 2,600 US millennial consumers
with an annual household income of at least $250 to $350
thousand and/or household net worth over $1 million. A subset of wealthy Gen Xers and baby
boomers were also surveyed for comparison.
"At Worth, we aim to stay ahead of business and consumer
trends to better serve our readers and our brand partners. This
survey gives us valuable insights into the habits of affluent
millennials, helping us to refine our editorial content and support
our advertisers who are eager to better understand how this
generation spends their time and money," said Josh Kampel, CEO of Worth Media Group.
What Wealthy Millennials Are Buying—And What They're
Not
An overwhelming majority of wealthy millennials said that
maintaining a healthy lifestyle was important to them (89%) and
that they like to invest in themselves (87%). Their spending
reflects these attitudes as more than two-thirds (68%) have spent
money on health and wellness within the past 12 months—more than
any other product or service category.
By contrast, wealthy millennials have deprioritized purchasing
cars, with only 42% buying one in the last 12 months. While this is
partially due to most respondents (72%) already owning at least one
car, it also reflects millennials' comfort with alternatives to car
ownership. Among those who did not recently purchase a car, 36%
prefer more on-demand models such as ride-share apps, car
subscriptions, and rental cars.
Philanthropic spending is an even lower priority for millennials
as they choose to extend their support beyond financial
contributions. Only 24% of wealthy millennials said they had
donated money to philanthropic organizations in the last 12 months.
Instead, those who had not contributed said they prefer to donate
their time and skills to philanthropic causes over their money
(44%), thereby fostering a deeper, hands-on connection with the
organizations they champion.
How Wealthy Millennials Compare with Older
Generations
The report also examines the similarities and differences
between millennials, Gen Xers, and baby boomers:
- Entrepreneurship as a Major Source of Wealth. When asked
how they built their net worth, survey respondents across
generations primarily pointed to their work/salary and investments.
However, millennials were more likely to cite business
ownership as a source of their wealth (41%, versus 18% of Gen X and
15% of baby boomers).
- Spending on Luxury Items Versus Experiences. More than
half (54%) of millennials purchased experiences (hotels, air
travel, etc.) in the past 12 months, yet Gen Xers and baby boomers
are 20% to 25% more likely to have recently made a purchase in this
category—possibly due to having more time. Instead, millennials are
prioritizing high-end products: 63% of purchased luxury goods in
the last 12 months (versus 50% of Gen X and 31% of baby boomers),
55% purchased jewelry (versus 41% of Gen X and 33% of baby
boomers), and 48% purchased watches (versus 31% of Gen X and 30% of
baby boomers).
- Managing Their Own Investments. Most millennials (69%)
prefer to manage their investments themselves without the help of a
wealth manager, compared with 53% of Gen X and 36% of baby boomers.
Wealthy millennials invest more diversely across asset classes,
with private equity (63%) and cryptocurrency (62%)
topping the list of alternative assets.
"As millennials enter their peak spending years, understanding
how these consumers think, behave, and spend is crucial for
companies—or they'll risk losing a once-in-a-generation
opportunity," said Jim Brennan, a
managing director and senior partner at BCG.
Download Worth's Millennial Mindset Report executive summary at:
worth.com/millennial
Media Contacts:
BCG: Eric
Passarelli, passarelli.eric@bcg.com
Worth Media Group: Clyde Lee,
clyde.lee@worth.com
About Worth Media Group
Worth Media Group brings
together a successful and influential community of business
leaders, entrepreneurs, technologists, financial professionals, and
nonprofit leaders to explore topics related to how business and
innovation can accelerate social and economic progress. Our
integrated media platforms include our quarterly print edition of
Worth Magazine, daily digital content, weekly newsletters from
Worth and Techonomy, and an extensive schedule of Worth &
Techonomy events. Learn more at www.worth.com.
About Boston Consulting Group
Boston Consulting Group
partners with leaders in business and society to tackle their most
important challenges and capture their greatest opportunities. BCG
was the pioneer in business strategy when it was founded in 1963.
Today, we work closely with clients to embrace a transformational
approach aimed at benefiting all stakeholders—empowering
organizations to grow, build sustainable competitive advantage, and
drive positive societal impact.
Our diverse, global teams bring deep industry and functional
expertise and a range of perspectives that question the status quo
and spark change. BCG delivers solutions through leading-edge
management consulting, technology and design, and corporate and
digital ventures. We work in a uniquely collaborative model across
the firm and throughout all levels of the client organization,
fueled by the goal of helping our clients thrive and enabling them
to make the world a better place.
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SOURCE Boston Consulting Group (BCG)