Opinion piece by:
Bangko Pangasinan – A Rural Bank, Inc.
According to the 2020 Consumer Culture Report from public relations agency 5WPR, millennial shoppers aged 18-34 are more likely to make impulse purchases (64%) than Gen X shoppers age 35-54 (53%) or baby boomer shoppers age 55 and older (36%).
There are some reasons why millennials make impulse purchases:
1. The power of social media.
Because of how well millennials utilize the internet, seventy-two percent of them think social media influences their purchasing decisions, according to a CreditCards.com survey. This age group is the most likely to be impacted by social media in their purchasing decisions, next by Gen-Z (66%), Gen-X (49%), and baby boomers (45%).
Millennials tend to be more eager to try out new products and services when they are trending on any social media platform and endorsed by influencers.
In addition, 91% of millennials prefer to shop online, with only 9% choosing to shop in-store only according to JungleScout as a convenience and a way to protect themselves from the threat of a virus.
2. Driven by Emotion.
According to a recent study by the Fashion Institute of Technology, millennial consumers look for emotional connections when choosing among products. They are also more likely to buy from a company if they are familiar with the people who endorsed it, and 47% of millennials said they want companies whose top priority is customer feedback.
3. The power of influences.
Because they have a high level of trust in their circle of influences, 38% of millennials claim that they are influenced by friends and family when making purchases.
To escape for these reasons, we will help you learn how to be a wise saver in this modern generation to ensure that you can overcome life’s numerous challenges in the future. Your savings will secure your future.
Tips to be a wise Millennial Saver
1. Evaluate your spending habits.
Evaluating your spending habits constantly will help you discipline yourself in purchasing decisions and track your money where you spent it.
2. Save first before you spend.
According to Warren Buffet, the world’s most successful investor, “Do not save what is left after spending; spend what is left after saving.” If you take his advice and make it a habit, for sure it helps you to have extra savings.
3. Allocate a budget.
Budgeting is a really difficult task. On every due date or bill that you have, there should be an allotted budget and it takes self-control and awareness to stick to your budget and not exceed your spending. So that you will not use any of your savings.
Every time you have extra cash or receive a paycheck, you should make it a habit to follow the first three tips. These routines will eventually become a part of who you are. Additionally, because your behaviors changed as a result of your commitment, you will generate more additional savings.
Every generation sees an increase in inflation, recession, etc. but since it is impossible to anticipate the future, it is best to start saving now. That way, you would not be terrified to confront unforeseen circumstances because you are prepared, secured, and a wise millennial saver.