Millennials Better at Saving Than Previously Assumed

Millennials are often stereotyped as being bad with money. Many people view those 20-something-year-olds as frivolous spenders, more concerned with the here and now than with the future. However, according to recent research, Millennials don't actually deserve this classification. According to Jonnelle Marte's L.A. Times article, they are saving much more aggressively than in past years, and in some cases are saving more than their middle-aged counterparts.

In the study, "Millennials" were defined as consumers between the ages of 18 and 29, and the results blew away many assumptions previously made about their age group. About 62% of Millennials are saving more than 5% of their income for retirement, emergencies, or other future financial goals. This is a significant improvement from last year when only about 42% of Millennials put the same portion of their pay toward savings. Comparatively, it was found that about 50% of consumers between the ages of 30 and 49 were putting as much into savings.

Analysts believe that Millennials' interest in saving money for a rainy day may come from personal experience or what they saw family members go through. Many, especially those straight out of college, struggled to get a job during the recession. Others, even if unaffected themselves, watched as family members were hit by layoffs and saw how hard it was for parents or even grandparents to recover. Likely because of this, 40% of Millennials are putting their savings aside for an emergency, rather than for retirement or something else that would matter the most in the distant future. They know how hard it can be to survive if they unexpectedly lose their job, and as such, want to be sufficiently prepared.

How are Millennials able to save more money now than in previous years? Some are cutting their spending, realizing that instant gratification isn't worth potential financial struggles in the future. Others are getting better jobs or being promoted to better-paying positions in the recovering company, and therefore are earning more money and are more able to put some of it toward savings. Some went back to school when they found that they couldn't find work during the recession and are putting their degrees to use in getting jobs now.

Not all Millennials are choosing to put their money aside for emergencies. Many are saving in order to be able to afford big purchases in the near future. About 27% are saving for a future home, 26% are saving for a car, and 36% are saving to go on vacation. No matter what they are saving for, researchers agree that Millennials have come to understand the value of saving, often more than their older counterparts. When asked about their major goals, the majority chose "saving", while smaller, but still significant, portions chose "leading a healthy lifestyle" or "paying down debt." Saving money can have a positive impact on anyone's life, so it's a good thing that more individuals have come to realize the value of saving over spending.

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Young Adults: Halloween's Growing Demographic

While Halloween was once considered to be mainly for children, statistics show that it has become a major consumer holiday, celebrated by plenty of Millenials and young adults. In fact, it is expected that this year, American will spend approximately $6.9 billion on Halloween and everything it entails. James Peltz, in his L.A. Times article, discusses how spending on such festivities has increased drastically over the years.

It is expected that over 157 million Americans will be participating in the festivities this year. Whether that includes purchasing candy to pass out to trick-or-treaters, or carving a pumpkin and wearing a costume, consumers will be spending a lot of money on their night of fun. The average price per consumer will be around $74, dramatically up from the $48 they spent a decade ago.

Spending, while high on Halloween, is still nowhere near the level during holidays like Christmas, Thanksgiving, Mother's Day, etc. However, for some businesses like costume shops and amusement parks, Halloween provides a significant portion of their yearly revenue. Most of the pumpkins grown in California are used for Halloween, thereby providing a reliable source of income for farmers in the San Joaquin Valley.

Some costume stores like Party City and Spirit Halloween open specific stores only for the six weeks preceding the holiday, thereby getting the most bang for their buck. Even though Party City has year-round stores, Halloween is their biggest season, bringing in about 25% of their annual sales. Even "Knott's Scary Farm" and Six Flags' "Fright Fest" have been known to encompass 15% of the total number of visitors to each amusement park in a given year. American consumers spend over $2 billion in candy alone per year. Generally, Halloween has become very profitable for an array of different kinds of businesses.

Even while consumers reuse decorations and costumes purchased in past years, they can't avoid spending on perishable items like food, candy, and fresh pumpkins, Research has even found that as involvement in social media has grown, so too have holiday-related costs. People share costume ideas via Facebook, Pinterest, and Twitter, alerting friends to sales at certain stores. Even more so, young adults, especially Millennials, tend to participate as a group, purchasing matching costumes and attending themed parties, all of which can be shared around the world by social media.

Peltz sees that nationwide spending on the festivities has doubled in the past 10 years. He believes that it is quite likely due to the technological era in which we live. As new devices and new movies/television shows enter our world, we have so much more to use in the celebration. Sure, kids are still participating in the holiday, but Peltz shows that Millennials make up the largest proportion of participants, and he believes that this trend will continue to hold true for many years to come.

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Find out more about us at www.sepulvedaescrow.net. Any Questions? Contact our Escrow Expert! Sepulveda Escrow Corporation (818) 838-1831. Follow our company on Facebook, Twitter, LinkedIn, and Google+.

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