Way before when life was still simple and technology wasn't an ever-looming force in our daily lives, the youth had goals like establishing a career, marrying, owning a house and car, and saving up for retirement. But this trend has changed during the recent years.
Nowadays, Millennials prefer spending their money on experiences rather than material possessions. Although owning their own houses and driving their own cars still drives the Millennial workforce today, a Harris Group study has shown us that three out of four Millennials would rather spend their money on a vacation than a material object.
This means that rather than renting out a spacious apartment, a twenty-something Millennial would spend the cash attending music concerts such as Coachella or Tomorrowland, or go on a hiking trip in the forests of Indonesia or Brazil.
The need for recognition and a higher level of popularity is said to be a part of this growing trend. Social media has allowed us to share our experiences with everyone across the globe, and a thousand likes in an Instagram post is now deemed more important and sought after.
That's why companies all over are tweaking their services in order to entice the younger generation. Companies that sell experiences or accessories that help elevate them are shown to be more profitable nowadays than, let's say, clothing retailers and high-end watch shops.
Airbnb, Uber, GoPro are some of the companies that are hot in the "experience market." While companies such as Aeropostale are filing for Chapter 11 bankruptcy protection.
"This generation not only highly values experiences, but they are increasingly spending time and money on them: from concerts and social events to athletic pursuits, to cultural experiences and events of all kinds," said the Harris study. "For this group, happiness isn't as focused on possessions or career status. Living a meaningful, happy life is about creating, sharing and capturing memories earned through experiences that span the spectrum of life's opportunities."
