According to recent research, millennials tend to spend more than they save. Which makes one wonder: what exactly is young India spending more on, wants or needs? Let’s find out:
1. Apparel & Fashion Accessories
As per a survey conducted by Hindustan Times, Indian millennials are prudent about their style choices.
Instead of splurging blindly on overpriced international brands, men and women give due importance to price, quality and style before making a purchase.
Surprisingly, most of them shop at brick and mortar stores instead of online stores, and prefer Indian brands as well.
Like most of us, Bangalore-based recruiter Ambika Singh, 25, loves a good bargain. “Physical and online stores today have so much variety and value for money that they are hard to resist for a shopaholic like me. Branded apparel on sale is my Achilles heel! Every few months, I end up buying four or five cute outfits at prices significantly lesser than their MRP.”
As opposed to our parents, we do not have much regard for acquiring conventional status symbols like a house and a car.
Instant gratification and love for experiences is what drives us. So naturally, we pursue passions like traveling. In fact, the pursuit of wanderlust is one of our top priorities.
Chennai-based marketing professional Sameer Trivedi, 24, travels as often as he can, which is a couple of times a year.
He says, “I love visiting new places, immersing myself in various cultures, and trying out new cuisines. Even though I try to (keep it on a) budget, a significant amount of my salary goes towards achieving my travel goals. I get by alright, because I am quite frugal otherwise.”
Millennials’ coffee consumption is increasing globally, so this one comes as no surprise. With the growing number of upscale coffee chains like Starbucks, more and more 20-somethings are becoming a part of the coffee culture.
True coffee lovers are even going a step ahead by purchasing home coffeemakers and freshly roasted coffee. It is not about snobbery; it is about simply wanting a fresh, delicious cup of joe.
A coffee lover myself, I have recently given up instant coffee, and purchase artisanal coffee instead. I typically get my daily fix thanks to my little espresso machine, but I give in to a cup from Starbucks every now and then.
Online food trends and food porn has made young India pickier of what’s on their plate.
Middle class Indians don’t mind shelling out money for gourmet food, and eat out even when there is no special occasion. We are becoming a generation of food connoisseurs, and restaurants and retail stores are evolving accordingly.
IT consultant Neelima Arora, 28, confesses how good food is paramount. “Despite GST and being on a weight loss programme, I visit my favourite eateries nearly every weekend. For a lot of my friends too, indulging the palate, although expensive, is worth it. What’s money for if you don’t use it to eat well?”
5. The Basics
And then for some of us, basic necessities come first. With rising costs of living, this is certainly a smart choice.
Pune student Saad Shaikh, 20, talks about how he divides his monthly allowance as per his necessities, “First comes petrol – how much I’d have to spend for four weeks based on the current fuel price. Then comes food, which isn’t as heavy on the pocket, as I live with my family.
“Whatever remains goes to the casual spending category – hangouts, accessories, etc. The money saved at the end of the month goes into my savings wallet.”
Blame it on instant gratification, social media envy, or the YOLO school of thought, we really are not as wise with our money as our parents were at our age. Unlike them, we are busy prioritising our wants over our needs.
Making spontaneous financial decisions, although fun in the moment, is not going to help us through hard times in the future. Let’s all vow to save before we spend, shall we?
Image Credit: Imagesbazaar