Posted On April 3, 2012
Millennials have had less disposable income in their 20s and 30s than the Boomers and Xers before them did, according to an analysis by AdAge. According to figures derived from the Bureau of Labor Statistics, both Millennials and Xers have spent more on housing, health care, and education when between the ages of 25-34 than the Boomers did at the same age. In the case of Millennials, those higher costs combined with a recessionary economy have curtailed their ability to spend on everything else.
In 2010 dollars, Millennials (during ages 25-34) have spent $21 billion more on rent than Boomers at the same age, $9.2 billion more on health care, and $6.3 billion more on education. Also measured in 2010 dollars, Millennials’ income is basically unchanged from what the Boomers earned at the same life stage (and 11% less than what Xers made). So, with an additional $40 billion in basic expenses but no additional income, Millennials’ spending in categories like food, apparel, furnishings, entertainment, and transportation has declined noticeably from the previous two generations.Baby Boomers, Blog, Generation Y / Millennials, Generations, Recession Economy