In order to study their money habits, Slonkit examined data of millennials who used the Slonkit card across a broad range of categories
India is home to more than 600 million young people in the age group of 18-34 years. They account for around 50% of our population. The young generation, or "millennials", as they are often referred to, prefer access over ownership. This has led to a popular perception that savings and investments are not on their immediate priority list. So, what do they spend their money on?
In order to study their money habits, Slonkit examined data of millennials who used the Slonkit card across a broad range of categories. Following are the insights about the spending habits of millennials as revealed in the survey.
Shopping (30%) – The data suggests that millennials spend nearly one out of every three rupee they have on shopping. To be precise, they spend about 30% on shopping. A whopping 87% chose shopping online as against going to a physical merchant outlet. It doesn't come as a surprise though, considering the convenience of shopping online and exciting sales offers. Price comparisons, peer ratings, online reviews and free home delivery are among the key factors that enhance the appeal of online shopping for millennials.
Bills (29%) – The data revealed that millennials spend around 29% of the money at their disposal on utility bill payments. It clearly indicates that millennials are a generation that seeks instant solutions. Convenience factor, again, is a major driving force here, they can pay bills at the click of their smart phones and avail interesting pay back options.
Food and Drinks (27%) – The transaction and spend data suggests that millennials are surely a busy generation, but they enjoy dining out more often than their previous generations. They also love to take away or get the food delivered to their homes. More than 60% of the millennials eat outside at least thrice a month. Research says, millennials who have recently entered the workforce spend three times as much on restaurant or club visits as they do on any other form of entertainment including movies, theatre and other recreational activities.
Groceries (8%) – Millennials spent around 8% of their income/ allowances on grocery. Majority of this is spent on online grocery shopping through e-commerce platforms.
Commute (6%) –Millennials are spending 6% of their income on daily commute. Majority of this spend is going to online cab aggregators. Also, we have witnessed occasional spend on travel portals.
Millennials appreciate and value products/services that can offer contextual solutions for their immediate needs and offer them a plethora of options and reviews for them to make informed "spending" decisions. While it is difficult to confirm if millennials are less inclined to savings and investments, our data on millennial spend patterns reveals that they do not mind going the extra mile to avail the best offers that are available to maximise the value of the money or allowances they have. They want instant gratification and are willing to research for it.
The author is founder, Slonkit
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