Neither Gen Z Nor Older Generations, Millennials Are The Most Worried About Their Personal Finances: Survey

At a time when most nations around the world are gripped with recession fears, rising interest rates and inflationary concerns, it's natural to be worried about our financial lives, right? But who is worried the most in these tough times?

Millennials ¡®Extremely Worried¡¯ About Their Personal Finances

Is it Gen Z or the older generation in their 50s or 60s? Well, it's none of them. It's actually the millennials who are the most concerned and ¡®extremely worried¡¯ about their personal finances.

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Overall, 61% of consumers are concerned about their financial situations, with Millennials (66%) and Gen X (64%) being the most worried, whereas Gen Z (60%) and Boomers (55%) the least. These are the findings from Capgemini Research Institute¡¯s annual consumer trends report, ¡®What Matters to Today¡¯s Consumer¡¯.

Who Belongs To Which Generation?

While there are different definitions given to various generations, widely stating, those born between 1981 and 1996 are usually considered to be millennials, whereas Gen Z includes those born in the mid to late 1990s or the early 2000s. Gen X is generally used for those born in the mid to late 1960s, the late 1970s or the early 1980s. Boomers, also termed baby boomers, are those born between 1946 to 1964, during the mid-20th century baby boom.

Also Read: Mutual Fund SIPs Top Investment Preference For Millennials, Digital Gold Comes Second: Survey

What Consumers Are Concerned About

Among the consumers who are extremely worried about their personal financial situations:

1. Many believe the government is not doing enough to address the rise in their cost of living (79%)

2. They are worried about energy use in their home due to rising energy prices (64%);

3. They are worried about their ability to afford food or other basic household necessities (62%);

4. Consumers' mental health has been negatively impacted by the rise in their cost of living (60% globally, and even higher for Gen Z and Millennials, at 69%);

5. They fear that their personal financial situations will worsen within the next 6¨C9 months (80%).

Most & Least Concerned Nations

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The report also observed that consumers with children in their household (66%) are more concerned than individuals without children (59%). By country, the greatest proportion of consumers is concerned in Canada (68%), Australia (65%), and the US (65%), while the Netherlands (50%) has the smallest proportion of consumers concerned.

73% Of Consumers Cutting Back On Impulsive Purchases

Purchasing behaviours are also changing. From its survey of 11,300 consumers in 11 countries, the report found that nearly three-quarters (73%) of consumers are making fewer impulse purchases, while 69% are cutting back on non-essential expenses such as electronics, toys, and dining out, as well as delaying the purchase of luxury items. Saving money is top of mind for many people, with 64% of consumers buying products from hypermarkets and discount stores and 65% buying cheaper private-label or low-cost brands.

Only 41% Of Consumers Will Pay More For Sustainable Products

Sustainability continues to be an important factor when deciding which retailer or brands to shop with, yet only 41% of consumers globally say that they are willing to pay more for a product they believe to be sustainable. This is a marked decrease as compared to the report findings in 2020 when 57% of consumers said that they paid higher-than-average prices for products that they perceive as sustainable.

The report highlights that brands and retailers must re-evaluate their pricing strategies to provide affordable yet sustainable options to consumers and offer loyalty programs that help customers navigate the current crisis while building customer loyalty in the long term.

Also Read: 5 Thumb Rules For Millennials Purchasing Health Insurance For Parents

Online vs Offline Purchases

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As per the report, the distinction between online and in-store is less clear today than in previous decades, with shoppers moving easily between the two and, increasingly, expecting a comparable level of service and experience.

The report's research shows that post-pandemic, 22% of shoppers expect to have a high level of interactions with click-and-collect orders (i.e., ordering online and picking up in-store or curbside), indicating an enduring desire to interact with physical stores, albeit perhaps not in the traditional manner favoured by Boomers (i.e., walking around a physical space, viewing, trying on, and selecting by sight). Unsurprisingly, perhaps, this trend is highest for Millennials (33%) and lowest for Boomers (11%).

Methodology For Survey

The Capgemini Research Institute surveyed 11,300 consumers over the age of 18 across 11 countries: Australia, Canada, France, Germany, Italy, Japan, the Netherlands, Spain, Sweden, the UK, and the US.

To qualify for inclusion in the survey, consumers must have purchased groceries and/or health and beauty products in the preceding six months. The global survey took place in October and November 2022.

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