The FINANCIAL — Around the globe, Millennials are commanding attention.
The FINANCIAL — Around the globe, Millennials are commanding attention. Why? They make up one-fourth of the planet’s population and, because of their young ages, their impact as consumers is starting to take shape. In the U.S., Millennials are 77 million strong and make up 24 percent of the population, in line with the country’s Baby Boomer generation. In emerging countries, Millennials make up an even larger portion of the population: 28 percent in China and 30 percent in both Brazil and India. Despite their size, however, many haven’t yet amassed much wealth. This generation came of age in the direst economic circumstances since the Great Depression, contending with high unemployment, high student loans and an uncertain future. Still, some have done exceedingly well, according to the Nielsen Company.
“Upscale” Millennials—those between 18-34 with Internet access and household incomes over the 75th percentile in their countries—represent the future of economic growth and prosperity. What does that percentile look like? In India, that means households earning $30,000 or more. In the U.S., the threshold is above $70,000. In an effort to better understand this group and its consumer prowess, Nielsen conducted a study across the U.S., China, India and Brazil to learn about their financial plans and aspirations.
Money matters to this group of consumers. In the countries studied, more upscale Millennials are actively saving for goals reflective of their young life stage—like higher education and home purchase—than the global population. And with their higher incomes, upscale Millennials globally are devoting a larger portion of their monthly income to savings than the general Millennial population. As a result, this young segment of the population feels confident in their financial futures.
But despite their similar life stages and financial situations, goals, savings and confidence among upscale Millennials around the world vary depending on culture and each country’s fiscal policies. Financial institutions should look to consumer sentiment and savings activities country by country to develop strategies to educate and connect with upscale Millennials, according to the Nielsen Company.
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