Money Management

Millennials spend differently than other generations, and value material possessions less highly. Keep reading to learn about a millennial must-have. 

What makes you happy? Would you rather spend your money on fancy gadgets, designer clothes, and luxury cars. Or would you prefer to travel to a new destination, try out different cuisines, or attend a concert? While the previous generations may have valued material possessions as a sign of success, millennials (born between 1981 and 1996) are quite different from other generations.

Experiences versus things

Unlike previous generations, millennials are more interested in acquiring experiences than possessions. They would rather spend money on travel, concerts, dining, and other activities that offer unique and memorable experiences.

This shift in priorities is driven by several factors, including the desire for social connection, personal growth, and adventure. In contrast, millennials are less interested in owning a house or buying a new car. They prefer to spend money on activities that create memories and stories to share with others.

The impact of social media

Social media is a major influence on the spending behavior of millennials. Members of that generation prioritize social value over material value when making purchases, with 61% engaging in experiences solely for the purpose of sharing on social media.

They are more likely to post pictures and updates about their experiences on social media platforms, which creates a sense of competition among their peers. This motivates them to invest in experiences that are unique and memorable. Also, social media has made it easier for millennials to discover new experiences and share recommendations with friends and family.

The role of the gig economy

The gig economy — a flexible labor market characterized by freelance work and short-term contracts — has emerged as a significant source of income for millennials. This has enabled them to earn money while pursuing their passions and interests, which often include experiences. They are more likely to invest their earnings in experiences than in tangible assets.

Impact on businesses

Millennials are now the largest generation in the workforce and are slowly becoming a significant driving force in the global economy. The unique spending habits of millennials, therefore, have significant implications for businesses that target this demographic.

For marketers, the secret to success lies in promoting sharable memories associated with their products rather than focusing on the product’s material value. Since millennials place greater importance on the social value of a purchase than its material value, companies are adapting their products, services, and marketing strategies.

Enjoying experiences without breaking the bank

Although millennials are at the forefront of the experience-first movement, baby boomers are following suit. More and more retirees embrace the “less is more” outlook and prioritize relationships and experiences over material things.

As people continue to prioritize experience spending, how do we balance that with the need to save? It’s all about being responsible with your money. The first step is to set a goal: Think about the experience you want and how much it will cost. Once you know the amount, start creating a budget tailored to your lifestyle.

Then, automate your savings with a separate account, such as a high-yield savings account, and schedule automatic transfers. High-yield savings accounts can offer competitive interest rates, allowing you to earn more on your savings over time.

If you are a responsible credit card user, take advantage of credit card rewards programs. You can earn points or cash back on everyday purchases, which can then be redeemed for travel purchases, entertainment, or even statement credits.

The spending habits of millennials are closely linked to their values and priorities. They prioritize experiences over possessions, and are heavily influenced by social media. Creating memorable experiences doesn’t necessarily mean draining their checking accounts, either. Remember, saving for an experience is not just about the destination, but the journey as well. Stay motivated by sharing your progress with friends and family and celebrating those small milestones along the way!

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Target. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

 Read More 

Childless workers between the ages of 50 and 54 will now be subject to new SNAP requirements. Find out more here. 

The Supplemental Nutrition Assistance Program (SNAP) is a lifeline for many Americans who need a little help covering grocery costs. But, even as food inflation continues to put a strain on people’s bank accounts, qualifying for SNAP is getting harder for some individuals.

In fact, as many as 750,000 older workers in the U.S. may see their eligibility for SNAP benefits jeopardized thanks to new changes to the program. Here’s what you need to know.

The debt ceiling deal puts new work requirements on older SNAP beneficiaries

Lawmakers recently agreed on a deal to raise the debt ceiling in the United States after prolonged negotiations.

This deal averted a financial crisis by protecting the full faith and credit of the United States and ensuring the country can still pay its bills and fulfill its financial obligations. However, part of the deal included imposing new work requirements on SNAP beneficiaries.

Under the current law, childless workers between the ages of 18 and 49 are limited to receiving just three months of SNAP benefits over a three-year period unless they can demonstrate they are either working for at least 20 hours weekly or are engaged in a job training program for that duration of time.

Those who do not meet these requirements can receive more benefits only if they fall within an exempt category, such as having a physical or mental disability that prevents them from holding down a job.

The new legislation will now expand this work requirement so it applies to childless adults between the ages of 50 and 54.

There are some new exemptions being added as well, with unhoused people, veterans, and individuals in the foster care system becoming exempt from reporting mandates. But, for most older Americans, the important change is that they will now need to show they are doing at least 20 hours weekly of work or job training or they will be subject to strict new limitations on claiming SNAP benefits.

When do the new requirements go into effect?

SNAP recipients who are 50 to 54 and who are affected by the change have some time to make alternative arrangements. The new mandates are being phased in, beginning 90 days after the law is enacted, starting with those who are aged 50. And, individuals who are 53 and 54 won’t be subject to the new rules until 2024.

Still, there is concern that the loss of eligibility could create serious financial hardship for the approximately three-fourths of a million people who are relying on SNAP benefits to help put food on the table. Many of those who are claiming this aid do not have other funds to rely on to cover the lost benefits. Some don’t have the ability to work for various reasons, such as being out of the workforce for too long. And many have no easy access to credit to help them borrow affordably. In short, this change will strain a lot of people’s checking accounts.

Those who are affected should know there may be other resources out there, including local food banks that can provide assistance. Feeding America is a great source of information on where to find help, so take the time to start researching now if the SNAP changes may impact you.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More 

Love grabbing a quick snack at Costco? Read on to learn about a new item that may be coming to your local warehouse club store. 

Shopping at Costco gives consumers an opportunity to save money in the course of stocking up on groceries and household essentials. But a big fan favorite among Costco members is the warehouse club giant’s food court. After all, where else can you snag a hot dog and soda for just $1.50?

Now, Costco is introducing a new item to its food court lineup. And it could be worth checking it out.

How does a refreshing mango smoothie sound to you?

Costco introduced its mango smoothie to food courts in Hawaii last year. And now, the warehouse club giant is bringing it to additional U.S. locations. Some Costco Reddit users have already reported seeing the mango smoothie in California, just in time for summer.

East Coast Costco fans, meanwhile, aren’t seeing the mango smoothie at their local food courts just yet. But things could change in the coming weeks.

Should you try the new mango smoothie?

If you like mango, and you like smoothies, then it could pay to scoop up this Costco delight and see if it tickles your taste buds. Its reported price tag is $2.99 (though it’s worth noting that Costco prices can vary by location).

You should also know that the mango smoothie may replace the berry smoothie on Costco’s food court menu. That could be a good thing or a bad thing, depending on how much you like the latter.

Now the good news about Costco’s mango smoothie is that in addition to its relatively affordable price point, it has no added sugar or preservatives, and it contains four servings of fruit. But if you don’t tend to like smoothies, then you may want to skip this food court addition.

Also, if money is tight and you’re iffy about the idea of a mango-flavored beverage, then you probably don’t need the extra $2.99 charge on your credit card, modest as it may be. You may be better off spending that money on a fast food item you’ll enjoy more or that will be more filling. In fact, for that cost, you can treat yourself to two Costco hot-dog-and-soda combos.

All told, it’s exciting to see Costco mix things up with regard to its food court offerings. Whether the mango smoothie will appeal to Costco fans broadly is yet to be determined, since the item clearly hasn’t made its way all over the country just yet. But if the idea of a refreshing mango smoothie appeals to you, then you may want to keep scoping out your local Costco food court to see if it’s making an appearance.

In fact, one thing you may want to do is buy yourself a mango smoothie before doing your Costco shopping if the item is available at your local store and you happen to show up already feeling hungry. Studies have shown that shopping with a growling stomach could lead to extra food purchases. So if you can quash your hunger with a refreshing smoothie, it might spare you a host of costly impulse snack buys as you load up your cart.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

 Read More