Posted by Isabella Passey on Thu, Jul 07, 2016 @ 04:00 PM
It’s no secret that Millennials are one of the most interesting and scrutinized generations over the last 100 years. Growing up in a time of technological advancement and economic collapse has provided them with a different demeanor and set of practices than previous generations. In May 2015, Goldman Sachs did a study on the Millennial generation and how their behavior has produced new movement in the economy. Through these growing trends, Millennials are influencing future changes in the payments industry. The lengthy, interactive infographic is a work of art and worthy of reviewing its comprehensive content.
The Millennial generation (aka “Generation Y”), made up of anyone born in and between the years 1980 to 2000, grew up in an era when a low employment rate and low/lower income has provided them with less discretionary income than previous generations. In 2000, the mean income of 15-24 year olds represented 69% of the total population while in 2012 the amount had dropped by 5%. Similarly, the mean student loan balance for 25-year-olds was $20,926 in 2013, nearly double what is was in 2003.
Other Goldman Sachs statistics suggest that with less money, millennials are postponing larger commitments to later in life:
- In 2010, 29.9% of 18-34 year olds were living at home with their parents, an increase of 3.1% since 1990.
- In 2012, 23% of the current population of 18-31 year olds were married and living in their own home. In 1968, 56% of the same demographic was married and living on its own.
- As of 2010, the median marriage age is 30 years old, a seven-year difference compared to the 1970s.
Millennials do still plan to marry and buy homes albeit later in life, including the 93% of 18-34-year-old renters who are renting now. There could even be a home sale surge due to the generation’s size (92 million to Generation X’s 66 million and the Baby Boomer’s 77 million) and their ambition to settle down in the future.
Growing up during the height of technological elevation has produced the first generation of digital inhabitants where apps, smartphones and social media take precedence. With concern about their debt and a desire to establish more permanent roots where items like automobiles and home furnishings will be necessary, millennials want dealers who will conform to their technological and traditional needs.
CrossCheck offers a suite of payment services that enable merchants to address the special needs of the next generation of consumers. With Multiple Check, for example, these young consumers can write 2 - 4 checks to be deposited over a 30-day period and choose each deposit date, offering them the most convenient payment plan to fit their demands. Find out more about Multiple Check by downloading our free guide.