Have you ever wondered why your best friend has a totally different approach to spending money than you? Or gotten into a serious skirmish with your significant other about your finances?
Even though you hail from the same generation, you might have very different approaches to money. In fact, there’s now new research to prove it.
The Boston Consulting Group surveyed 4,000 millennials, ages 16 to 34 and found out that of the 79 million millennials (also known as Gen Y), there are six overarching stereotypes that describe their varied approaches to not just spending, but money in general.
While this research is generally used to tell marketers why you buy, it’s also a valuable tool to help you hone in why you spend on what you do, as well as new ways to save in your budget. Below we’ve broken down the six different millennial categories and their spending habits—which one sounds the most like you?
First, identify your type, then we’ll suggest ways you might be able to curb your spending.
Spending Type #1: Hip-ennials
Hip-ennials are the largest millennial group at 29%. But in this case “hip” doesn’t mean trendy. If you’re a hip millennial, you’re optimistic but cautious, and you seriously believe you can have a positive impact on the world.
What they splurge on: Hip-ennials don’t often over-indulge, but when they do they’re suckers for anything that gives a percent back to charity—like breast cancer research edition heels or co-op supported organic berries. And often their do-gooding hearts are bigger than their current budgets.
How to save if you’re a hip-ennial: Luckily, splurging on luxury items tends to be anathema to you. But woe to the hip-ennial who discovers the perfect (pricey) purse that also gives back to a cause she cares about. You tend to throw the budget out the window if there is a good excuse to spend.
Remember, just because it does good doesn’t mean it won’t blow your budget. Be sure to set aside a portion of your budget for charitable causes so you don’t break the bank when you get swept up into a cause–even if it is for the greater good, going into debt has much worse long-term effects.
Here’s how to give to charity in a way that helps you, too: Why I Give 10% of My Salary to Charity
Spending Type #2: Millennial Moms
At 22%, millennial Moms are both the oldest and the most affluent of the groups. They spend lots of time online—and love to offer their own, and read others’, opinions. When it comes to money, they value health, travel and pampering their children.
What they splurge on: Millennial moms spend freely in the name of health, wellness and family. They will pay whatever it takes for the latest juice cleanse, family-friendly cruise or Mommy & Me developmental class. They believe you can’t put a price on health, baby’s happiness, or the family’s future.
Read the rest at LearnVest: Which Gen Y Spending Type Are You?