Remember all the talk about baby boomers and how they would change the world? Now it’s the millennial generation that is making headlines as a new generation of entrepreneurs and innovators make their presence felt in every aspect of our lives all over the world.
Baby boomers are people who were born after World War II between the years 1946 and 1964. During the boom, an estimated 77 million babies were born in the United States alone, resulting in a rise in demand for consumer goods and significantly fueling the post-war economy.
There are about 75.4 million baby boomers currently living in North America, representing 20% of the American public and still having a significant impact on the U.S. economy. The boomer generation is portrayed as educated, optimistic, and motivated by a sense of strength, opportunity and wealth.
….by 2017, millennials will have greater spending power than baby boomers…
This ‘middle class’ generation continues to be the focus of major marketing campaigns and business plans.
Millennials Move In
Enter the Millennial Generation.
Millennials were born between the early 1980’s and 2000 and according to recent U.S. census numbers, there are 83.1 million millennials living in the U.S. These young adults came of age with the digital revolution and are now emerging as a dominant consumer group.
MasterCard did a recent in-depth study of these consumers and came up with some interesting statistics. According to the study, by 2017, millennials will have greater spending power than baby boomers-close to $200 billion- and will spend $500 billion in purchases.
These young men and women are leading the way in technology, sports and social issues. Having grown up with the internet and smartphone, they are used to having information at their fingertips and expect to achieve things much faster than older generations. They are intellectually connected and eager to influence others. They also expect easy access to and immediate response from everything.
The MasterCard survey indicated, however, the average millennial is a different type of consumer than in the past. Millennials are frugal shoppers and are not impulsive buyers. They are willing to do the research before jumping in and depend heavily on apps such as Uber and NBNB before reaching a decision.
When it comes to smartphones and tablets, however, they are quick to hit the ‘buy’ tab. Communication in all forms is vital to their lives and getting the message—no matter what it is—out there as quick as possible is crucial to them.
Outsizing Baby Boomers
The Millennial generation is projected to surpass the outsized baby boom generation as the nation’s largest living generation in 2015 according to the population projections released by the U.S. Census Bureau. Millennials, aged 18 to 34 in the U.S., will hit 75.3 million, surpassing the projected 74.9 million boomers aged 51 to 69.
It is easy to see that the overall impact of the millennial generation on the overall economy can be momentous.
Statistics released in October 2014 by the Council of Economic Advisors in Washington, lists additional facts about Millennials and how they are expected to impact on the economy in the next 10-15 years.
According to the CEA report, millennials are the most diverse and educated generation to date, with about 61 percent of adult millennials attending college or having completed at least a first degree. Only 46 percent of baby boomers did so. More millennials have college degrees than any other generation of young adults, a reflection of their commitment to higher education as a response to an employment market that values more educated workers.
Millennials are also somewhat less likely than previous generations to major in fields like business and health but are more likely to study social science or applied fields—like communications, criminal justice, and library science. Surprisingly, the share of millennials choosing to study computer and information science majors has fallen over time, a decline more pronounced among women than men.
They are more likely to focus exclusively on studies instead of combining school and work and more students rely on loans to pay for their post-secondary education.
These 20 to 30-year olds are not just virtually connected via social networks but place considerable value on family and friends and are not averse to living close to them.
Millennials are more concerned with their health and well-being and are much more are likely to have health insurance coverage during their young adult years.
Millennials are the generation that will shape our economy for decades to come. This is a generation that is marked by transformations at nearly every important objective, from changes in parenting practices and schooling choices, to the condition of the U.S. economy in which they find themselves, to their own choices about home and family. Perhaps they are simply continuing the patterns begun generations ago. More likely, they are forging ahead and making their own inroads in our fast-paced technologically explosive world.