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While 64 percent of Generation Z, 60 percent of Millennials, 58 percent of Generation X, and 63 percent of Baby Boomers reported reduced spending throughout the pandemic, Clutch’s latest research found spending decreases were found to have affected each generation differently. Millennials, the company said, have been seen shifting spending habits to consider present concerns rather than focusing on the future.
In the early weeks of the pandemic, the company’s survey showed 60 percent of Millennials were spending less overall, though spending more on groceries, alcohol, restaurants, and health and beauty. Cost savings and increases are in part due to wide restrictions put on lifestyles. In fact, 40 percent of Millennials reported having increased grocery expenses during the pandemic. However, the company also found Millennials are saving money due to travel restrictions. Twenty-three percent have canceled existing travel plans and an additional 32 percent have paused plans for future travel.
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Like all generations, Millennials are now spending more online. While 43 percent of survey respondents reported they are spending the same amount of money online as they were before, 30 percent reported they had increased online expenses over the past few months. In its report, Clutch credits this to more unlimited access to the online world leading to “purchases they likely wouldn’t make under normal circumstances.”
Notably, an increase in traditionally in-store shoppers turning to e-commerce for the first time during the pandemic has raised online sales. Moreover, the company found that these newly converted online shoppers are reporting positive experiences and plan to continue the practice.
In contrast, Millennial consumer behavior has also been impacted by rising unemployment rates. To illustrate, Clutch interviewed Millennials who had been laid off during the pandemic who reported to shifting from splurging behaviors to only buying necessities.
According to Clutch, as the world continues to reopen, American Millennial spending habits are likely to continually adapt to the economy and shifts in everyday life.
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