Quote:
Originally Posted by chemgear
http://business.financialpost.com/20...not-all-right/
Yet American Express suggests that Gen Y, who it describes as those born after 1983, has boosted fashion spending by 33% between 2009 and 2011, travel spending by 74%, and fine dining spending by 102%.
The same week, TD Canada Trust released a survey showing that more than half of those between 18 and 34 are carrying credit card balances. About 40% are just making their minimum monthly payment.
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I'm all for another article talking about how stupid gen Y is with it's money (And I fully agree), but like always this article might be reaching with their use of statistics. I'm in the said age demographic and I would have to say that my spending habits (But not the credit card debt part) probably match the one's highlighted.
It's really easy to increase your use of fine dining over three years by 102% when you jump in age from 23 to 26. If you laid out money for one fine dining experience in 2009, you would only need to go out for one additional night of fine dining in 2011 to mark that increase. Is that really fiscally unreasonable considering many 26 year olds are probably making more money in 2011 than when they were 23 (moving from survival kraft dinner food in University days to the days of a steady pay cheque)? Same anaology and thought pattern on both travel and fashion spending.
For many people those three years marks a massive fiscal transition. The funny thing about those youth unemployment/underemployment statistics of the past few years is that many overlook the fact that there's still over half of us who are gainfully employed. Situations of the better half might very well account for greater components of those increases in spending.