A new survey conducted by Worth, in collaboration with Boston Consulting Group (BCG), provides an in-depth look at the values, spending habits, and investment preferences of wealthy millennials. The “Millennial Mindset Report” challenges several preconceived notions about this demographic, offering valuable insights for the jewelry industry.
Demographics and Income
The survey includes responses from 1,989 U.S. millennials aged 28-43 with household incomes over $250,000, or $350,000 in high-cost cities, and net worths exceeding $1 million. Around 33% of these individuals have net worths of at least $3 million.
Despite societal advances towards gender income parity, wealthy millennial men still dominate the sample at 61%, compared to 48% of the general U.S. population. The racial composition skews predominantly white at 84%, compared to 76% nationally.
Wealth Sources and Investment Trends
Forty-three percent of wealthy millennials grew up in upper-income households, significantly higher than 18% for Gen X and 13% for Boomers. About 28% have inherited some wealth, and 9% benefit from gifted money or possessions. Entrepreneurship is notable among this group, with 41% deriving wealth from business ownership, compared to 18% for Gen X and 15% for Boomers.
Investment returns are a significant income source for 77% of wealthy millennials. While public markets remain a primary investment category, only 31% invest in stocks, bonds, and ETFs—significantly lower than 53% for Gen X and 61% for Boomers. Millennials show a growing interest in cash and savings accounts, real estate, private equity, and cryptocurrency.
Spending Habits
Contrary to the popular belief that millennials prioritize experiences over material goods, the survey reveals that 63% of wealthy millennials have spent on luxury goods in the past 12 months, compared to 54% on experiences. Luxury brands continue to be favored, with well-known names in fashion and jewelry maintaining their popularity.
Health and wellness are top spending categories, with 68% prioritizing this area. Additionally, 46% of respondents identify with a minimalist lifestyle, preferring to rent or share assets like cars.
Values and Philanthropy
Sustainability and social justice are significant concerns for wealthy millennials, with 79% caring about climate issues and 67% engaging in social justice activities. Despite this, traditional philanthropy is less common, with only 24% donating money in the past year. However, 44% prefer to contribute their time rather than money.
Implications for Jewelers
These insights highlight several opportunities and challenges for jewellers targeting wealthy millennials. The preference for established luxury brands suggests that maintaining brand prestige and visibility is crucial. The emphasis on health, wellness, and sustainability indicates that jewellers could benefit from aligning their practices and marketing with these values.
Further details and findings from the ‘Millennial Mindset Report’ are available through Worth and BCG.
