Greedy echo boomers. What to spend the money of Russian Millennials

© Fotolia / DiashuleШоппингGreedy echo boomers. What to spend the money of Russian Millennials© Fotolia / Diashule

MOSCOW, January 28 — RIA Novosti, Natalia Dembinski. The main economic force, entering into a phase of active consumer — generation Y. the demographers call those born from 1981 to 2000. It is to him now riveted the attention of corporations and financial institutions around the world: it turned out that in the age of technology and the rapid spread of the sharing economy, they spend not as representatives of the generation X or baby boomers. They don’t buy a car if you rent, do not want to eat fast food, because it is harmful, and indifferent to the diamonds. On how and what to spend the money of the Russian echo-boomers, how they differ from their foreign peers and why it is easier to buy a home — in the material RIA Novosti.

Save and save

In contrast to the careless Boomer generation due to retirement, and generation X, often showing a tendency to live for today, Millennials have mastered the art of saving money.

Although in the wallets of generation Y representatives have launched a battle, they seem in no hurry to open them.

For example, as found in Merrill Edge, retail division, Bank of America, studied consumer behavior in the order of thousands of Americans with middle and high income, over a third of them are literally obsessed with saving. They are sent to a savings account by half. About 54 percent of the respondents admitted that lay in the family, as again, it costs about 40 percent are willing to give up your holiday to build up a financial safety cushion.

«More than half, according to our surveys, have savings, and about one third are purposefully hoarding,» notes Damien Leclere, head of the Department of non-credit products Raiffeisenbank. A similar trend is noted in Alfa Bank according to their estimates, young people account balances and deposits, on average, higher than older customers, and more than 45 thousand rubles.

To save some Millennials aspire and on purchases, removing from the banking products for additional income. A key tool here, kasbek, which practically does not use the older generation. Using a debit or credit card, you get discounts when making purchases from partners of the Bank — and it is usually up to several hundred stores and retail chains. You return to the map from two to five percent of the money spent, and during various promotions and special offers, cashback can reach 15 percent.

Because Millennials are practicing more sophisticated model of behavior in the pocket and they have almost no cash: most of the payments they make on the card via ApplePay/AndroidPay. «It turns out that the share of cash they have less than the older generation», — stated in the «Alfa-Bank».

Gadgets and travel instead of diamonds

In General, Millennials are already suffering the whole industry, calling them «the greedy generation» that just does not make you fork out. In General they are much less likely to take loans, except loans for the phones and other electronic equipment.

Especially those different clients in the 18-25 age — the lion’s share of consumer loans that charge a «y» in the Bank, falls at the latest models of smartphones and other expensive gadgets.

Among those who felt the consequences of the spread of this economic model — makers. Young people in large cities of developed and now developing countries gradually lose interest in buying a car, preferring the services per-minute rental, car sharing. As a result of sales from automakers falling.

One of the reasons that Millennials tend to do as little as possible ultra-expensive shopping, sociologists believe that their age had too many financial crises. But because they are simply afraid of any serious financial responsibility.

In Russia, with the purchase of real estate, the situation is somewhat different. First, housing prices in the last few years surely go down. In major Russian cities square metre fell by an average of 4.5-12 percent, calculated in

In addition, there are government assistance programs for young families and mortgages are getting cheaper — rates are already close to eight percent in the short term should be six.

According to analysts of First National Real Estate, it can lead to the fact that Russian Millennials to grab a bigger share in the housing market than baby boomers and generation x combined. The first real estate purchase — it is primarily about apartments — Millennials will be able to make on average for six years.