Millennials got the short end of the stick when their oldest members came of age during the Great Recession over a decade ago. But it looks like the age group’s experience with the prior financial crisis is paying off as they face another in the wake of the coronavirus pandemic.
The often-maligned age group is reportedly the most active in changing their spending habits during the current recession. Still, not all of their moves have been good.
Let’s take a look at what they are getting right and where they went wrong.
The Travel Bug
Millennials, seemingly struck with the travel bug bad enough to ignore the threat of the coronavirus in its onset, received the ire of the public when some of them bought cheap plane tickets as others were already sheltering in place.
Numerous twenty-somethings took advantage of the rock bottom prices airlines were listing due to the massive number of canceled and rescheduled flights as panic over the virus spread.
Fortunately, it looks like that’s where they drew the line when it comes to risking their safety during a pandemic.
In fact, millennials and their younger counterparts, Gen Z, were quick to tighten their wallets as they anticipate the recession that the global crisis eventually caused. According to the results of a First Insight survey, over half of Generation Y said that the coronavirus affected the way they spent their money.
As a result, 40% of them report that they’ve cut back on their expenses.
Millennials have also notably begun relying more on delivery apps and services even more than they have before.
The age group also seems to be the most active in terms of moves made in the stock market.
A study by YouGov and Bankrate found that 24% of them made investments as a response to the market’s current volatility. In comparison, only 5% of boomers did the same.
Like with flight prices, it seems that the age group is seeing the perk of buying investments at lower prices.
Stimulus Check Expenditure
Millennials also differ from their older counterparts in the way they spend their stimulus check. They are reportedly likely to use the money for things like student loan debt payments, housing as well as stocks.
On the other hand, Gen X said they’d probably spend theirs to pay off bills, credit card debt, and pad up their savings. Boomers are a bit more safe with their choices as they plan on using their checks for medical supplies and clothing.