Millennials are surpassing Baby Boomers in the category of being the largest U.S. generation. As such, their lives will have a great impact on the national and world economy. This generation was born in the year from 1981 to 1997 and they number around 80 million.
The Pew Research Foundation reports that their spending habits will increase the world economy by more than $600 billion. It is estimated that by the year 2020, Millenials will account for more than $1.5 trillion.
The Millennial generation is currently half of the national labor pool. They are very knowledgeable about creating and implementing mobile technology. Companies are investing more time and money into the devices that Millennials are using daily, both in their personal lives and at work. This generation leads the economic indicators that track marriage, children, and homeownership.
For this reason, the Millennial effect on the economy is substantial because of their daily living habits of being circumspect spenders, their need to live in large cities and not owning a personal car.
Millennials bring huge student debt to the economics of this county. As a result of this debt, they are also still living at home. Higher wealth numbers could easily be delayed by both Millenials and Gen Z because of educational loan debt.
The future of the world economy is presently in the hands of our Millenials. It will be up to them to increase the national and global markets. With their technological skills and insights, Millenials are becoming net-income producers. Looking ahead 10 years, present-day Millennials will represent more of the 90 percentile in spending.
If Millennials have a need, chances are they will invent it. They are not looking to be the new wealthier business owner. Instead, their goal is about a purposeful mission and the value in a world community that their designs bring. The perfect example is Mark Zuckerberg of Facebook. His main goal for success is to give back.
His platform in life is to give back by helping to find cures for diseases, to improve healthcare, and to better the country’s educational system. Other economic entrepreneurial successes whose goal is to improve the community, is Sweden’s Spotify founder Daniel Ek. There is also Canada’s Michael Litt one of that nations top startup entrepreneurs.
The Millennial generation and their impact on the economy are not going to take place, it is already being felt. The generations, like the Baby Boomers, are living their lives based on how Millennials live each day and the generation to follow (Generation Z) will pick up the Millennial gauntlet to march into the future.
Millennials would prefer to shop online, bank online, and communicate online. The older generation and the younger generation must do the same thing that Millennials are doing in order to shop, play, and spend.
Millennials like to shop and buy using different brands based around their daily needs. They unlike the Baby Boomers, do not have loyalty to one specific brand and they do not tolerate poor service.
When we evaluate decision making that affects a large group of individuals you have “outcome bias.” Millennials are the leading generation in effecting how everyone else lives their life at the same time. This is how the economy is affected and how life has shifted for the better. Millennials have brought about major changes in the world economy.
Millennial buying habits are helping to slowly improve economic stats because they spread their buying habits among varied services and products. Also, their spending and buying habits are accomplished by using top quality brands that speak to their values.
Millennials are not shy in stating that they will end a consumer relationship if they disagree with a company’s operating procedures, business values or their politics. As a result, top brands like Apple and Google are creating more advanced tools to peak Millennial interests and to form an economically sound GDP partnership.
Again, as previously stated, the global economic future will be defined by the Millennial generation. First, their intensity for greater productivity and increased demand for AI innovations is in the forefront of our economic rise. All in all, Millennials will very shortly have a huge impact on the economy, especially in how quickly it will occur.
Why? Because they are educated, very opinionated and they think far ahead with the intent to quickly meet their goals. As a result, they have become known as the “me” generation. As far as their economic impact, the world has become a service economy and not a global purchasing goods economy.
The lives of Millennials impacts the economy in areas like homeownership. Building, buying, selling and owning a home is one of the largest economic indicators of how well things are going. However, in this Millennial age, when they are more interested in renting and changing habitations often, housing construction has slowed down.
Millennials admit that they are not in a rush to be homeowners, but they are not against it either. The industry is preparing itself because when Millennials get ready for homeownership, it will be a fast and lucrative home sale surge.
In other words, if Millennials are not rushing to buy cars and homes, this seems like it is more a matter of choice due to lessened economic means as a result of debt. Also, this generation lives in a “shared economy.”
This is where their living and working relationships are a shared experience, as shown in the modern open working spaces. In addition to these economic trends, Millennials also marry later in life.
This amazing global generation is also affecting the medical industry by devoting more time and money to exercising and eating healthy. Their active lifestyle trends from food to fashion continues to shape the new economic standards set by Millennials.
They are skilled with technology, they are globally diverse and Millennials are more educated than past generations. All their movements will have a lasting economic effect for decades to come. Their influence will be seen in the lives of the generation to follow.