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Wealthy Millennials’ Spending and Investment Habits Revealed in New Report August 01, 2024 (0 comments)
New York, NY--A recent study by Worth and BCG highlights the distinctive behaviors and priorities of affluent millennials.
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The "Millennial Mindset Report" sheds light on the spending, investment, and philanthropic tendencies of individuals aged 28-43, with annual household incomes exceeding $250,000 or a net worth of over $1 million.
The report indicates that 86% of these millennials are married, 71% have children, and 94% own homes—a stark contrast to the 51.5% homeownership rate among the general millennial population, as reported by the U.S. Census Bureau.
The surveyed group, composed primarily of white individuals (84%), shows a higher representation of men (61%) compared to the general U.S. population (48%).
Many wealthy millennials started from privileged backgrounds, with 43% growing up in upper-income households. A notable 28% of them have inherited wealth, though this figure is lower than that of Baby Boomers, who stand at 39%.
Entrepreneurship is a significant income source for this group, with 41% owning businesses, compared to 18% of Gen X and 15% of Boomers. Unlike previous generations, only 81% of these millennials list salary as a primary income source, with investment returns following closely at 77%.
Their investment strategies differ markedly, focusing less on public markets and a growing interest in cash, savings, real estate, private equity, and cryptocurrency. Interestingly, only 30% consult financial advisors, preferring to manage their wealth independently, with 61% identifying as self-directed investors.
When it comes to spending, wealthy millennials prioritize experiences, with 76% favoring activities like travel and concerts. However, luxury goods remain a significant expenditure, with brands like Gucci, Louis Vuitton, and Rolex being popular choices. The report also notes a growing inclination towards health and wellness, with 68% spending in this category.
The study reveals a strong commitment to sustainability and social justice, with 79% of respondents concerned about climate change and 67% engaging in social justice activities. However, traditional philanthropy sees lower participation, with only 24% donating money, though nearly half prefer contributing time.
Learn more in this report on Worth.