How Different Generations Allocate Money
Different age groups tend to have considerably different spending preferences, from middle-aged adults to teenagers. There are various factors to explain these changes: personality, time period, beliefs/values, economic standing, etc.
In today’s blog, we will cover the physical and e-commerce money spending choices among the different age groups - generations boomer, X, Y, and Z - as well as how they save their money. Finally, we'll explain how each group could benefit from using Income.
The generation of baby boomers grew up in the immediate aftermath of WW2 - 1946 –1964 - when the US experienced an economic boom, leading to a growth in American families, homes, and small increases in income for soldiers, but the vast majority of families were working class or poor which helped establish into their character a strong savings attitude. This does not imply however that they are frugal spenders: they happen to spend a good amount of money on certain consumer products or practices - vacation traveling, movie and performing arts theaters. Many baby boomers today also have engaged in long-term financial investments given the increase in the financial value of their own housing property, earning dividends as a result. Since not all baby boomers have adequate wealth for serious investments, Income is a great option to accrue greater financial gains since they are receiving free income, adding to their life savings.
This generation born between 1965 to 1980 does not engage in heavy consumer spending or investments, rather maintaining the same behavior as their predecessor when it comes to savings, along with being the most prevalent customers of insurances. This can be attributed to the numerous economic recessions they encountered when growing up, stagnant wages, cost of living, etc. Also, given a proportion of them are parents, they allocate most of their pay to provide for their children and/or elderly relatives - leaving little income remaining to spend on themselves. A lot of time is consumed therein between work and family, making savings and additional income activities nearly impossible to undertake.
Passive income however demands little work or time allocation, thereby allowing this generation to earn easy extra income. While this additional money cannot realistically cover big expenses like rent or insurance, it can be used towards more consumer-friendly acts; for instance, entertainment products like Netflix or music subscriptions, or snack indulgences like pastries.
Millennials (Generation Y)
Millennials were born in the years between 1981-1996, and are the most discussed age group. They are often blamed for negative trends which cause economic downturns, but this is false since the majority of them have to work for a living and have little savings or wealth that can be used for material possessions (consumerism). Because rent and mortgages have reached all-time high price levels, millennials are forced into spending the most money on housing in comparison to other generations. They also are riddled with debt, which makes conspicuous spending essentially impossible.
Furthermore, Millennials are the first generation introduced to social media and the internet, rendering many of them competent with electronics and having developed efficient e-commerce spending methods. Given their acclimated positions, they can easily understand and adopt the Income application as it is a modern technological service that provides passive income which can help remedy some of their financial burdens.
The most current generation in the world today are Gen Z individuals, born in the time between 1997 and 2012. Expectedly though, much of mainstream news does not cover them since they contribute the least amount to spending, saving or financial trends, and a mass percentage of them are financially dependent on their parents or other people.
When it comes to financial transactions, this generation is the most susceptible to consumerism and advertisements, often having the biggest online shopping presence and power, and utilizing mobile payment products the most (Venmo, Zelle, Cash App, etc.). While the tail-end of this generation are starting to enter into the career workforce, many began earning money prior to that stage. Because of the digital age today, there has been unprecedented access to various forms of earning money - from social media to online gigs -which they can produce while doing other things, as well as having multiple income streams. It explains then why most Income users - which our community likes to refer to as Incomers - come from generation Z, as they are enthusiastic and highly interested in receiving income from as many sources as possible!
It's obvious with all this information that different age groups spend and save money differently online and in-person. Regardless, every generation can exercise the same financial allocation practices, such as gaining additional money from passive income avenues.
No matter which generation you are a part of, you can start earning passive income today with Income's ethical proxy network by following the link down below. By signing up to start accruing free income, you will also receive a bonus gift of $5 to jumpstart your passive income earnings adventure!