Having faced multiple financial challenges, like the 2008 recession and the economic impacts of COVID-19, millennials have developed a cautious approach to spending. This generation tends to be more selective about where their money goes, often avoiding purchases that don’t align with their values or financial priorities. This article explores a range of products that millennials typically choose to skip, reflecting their distinct spending habits.
Bulk Warehouse Club Goods
While bulk purchases may be more cost-effective, millennials don’t have the space to store them. Many millennials live in small apartments, which means they have less space and need to make more frequent purchases. Retail giants are trying to adapt to millennial preferences with things such as home delivery services.
Motorcycles
Motorcycle sales have been significantly dropping because millennials value their safety. For example, Cad Crowd writes, “The sales of Harley Davidson motorcycles, which represent around half of the big bike market, dropped as much as 1.6 percent overall in the year 2016 compared to the earlier year.”
Houses
Thanks to increasing real estate prices and stagnant wages, millennials are either refusing to buy a house or physically can’t. Millennials face the housing crisis, with rent sometimes being as expensive as mortgage payments, making it impossible to save for a house. Millennials do have hope that prices may decrease, but it isn’t looking likely for the foreseeable future.
Anything a Smartphone Does (But Isn’t a Smartphone)
Smartphones have replaced a variety of devices, which means other devices, such as digital cameras, are no longer needed. Millennials don’t want to spend money on products that they don’t need, as they see it as a waste. They also love the all-in-one convenience that comes with smartphones.
Doorbells
Thanks to changes in social norms, doorbells aren’t commonly used. Nowadays, millennials are used to receiving notifications on their phones, which means they know who’s at the door before they answer it. There’s been a higher rise in digital doorbells compared to traditional ones, even though there have been privacy concerns.
Souvenirs
Millennials have a preference for meaningful and handcrafted gifts rather than generic souvenirs that you can purchase from just about anywhere. They prefer to spend their money on experiences rather than tactile gifts, as they see them as more worthwhile. This trend also reflects a shift toward minimalism over consumption.
Plastic Bottles
Environmental concerns have meant there’s been a decline in the number of plastic bottles purchased, and this is largely down to millennials. For example, Money Ppl writes, “Everybody knows that they have a horrific impact on the environment, and that’s why they’re going out of fashion.”
Casual Dining
Millennials prefer the option of takeout, and this has had a significant effect on casual dining restaurants. This preference has changed because millennials now want the convenience of fast food options. The pandemic has also helped to popularize this, as people were more likely to order in.
Hotels
Instead of spending money on hotels, millennials are more likely to stay at an Airbnb or similar services, as it’s usually more cost effective. They prefer being able to rent apartments, as they have more independence. This popularity can become a threat to some hotels, especially independent ones.
Business Suits
Casual work cultures have meant that millennials don’t need to purchase business suits or formal attire for work. Many millennials and Gen Z opt for more casual dress codes, as they don’t see the need to dress up for work. Casual dress is much more comfortable and can make it easier to get work done.
Investments
Due to being present during the financial crisis in 2008, it’s caused many millennials to become skeptical about investments. Instead, they would rather save their money in a different way. Because of the recession, millennials prefer tangible investments and are cautious about putting their money in the stock market.
Designer Handbags
Millennials aren’t wanting to spend on luxury items such as designer handbags. This is supported by Forbes, which writes, “Over one-fourth of (people) report no luxury purchases of £380 or more in the last 12 months.” Millennials seek more value for their money and want to purchase more sustainable handbags.
Golf
You won’t find millennials spending their money on expensive golf clubs or memberships. Instead, there’s a shift toward more diverse and inclusive leisure activities. Golf is a sport that faces challenges in adapting to millennials’ values and lifestyles. It’s caused golf clubs to seriously think about how they can attract younger members.
Diamonds
This generation would rather have financial security than spend money on luxury items. With burdens such as student debt, the last thing they want is to be buying diamonds. This is supported by MoneyWise, which writes, “Millennials are in the midst of disrupting the diamond industry by opting for unique gemstones or hand-crafted options when it comes to buying jewelry.”
Satellite TV
Millennials prefer streaming services over satellite TV. They have more choice in what they can watch, and prices are usually much lower. Over the past few years, there has been a significant increase in streaming users and a decline in satellite subscriptions. Millennials prefer on-demand content over traditional TV.
Wasteful Products
Millennials have a preference for buying reusable products, such as metal straws, so that less is going to go to waste and harm the environment. This generation has a strong environmental consciousness that drives their purchasing decisions. They want to reduce their carbon footprint by using sustainable products.
Beer (Mass-Market)
There’s been a huge shift toward local and craft beers for millennials, as they’re usually higher quality and more unique. Craft and local beers have more of a community aspect to them, which is what millennials love. It’s become increasingly difficult for big beer brands to attract the next generation’s interest.
Traditional News Media
Deloitte writes, “When it comes to news, the younger generation turns to social media. According to our survey, 65% of 18- to 24-year-olds (Gen Z) and 61% of 25- to 34-year-olds (millennials) list one or more social media as their preferred source of news.” Younger generations have a preference for real-time news, which can be accessed digitally.