"Generations X and Y will fuel the shopping growth needed to spur an economic recovery, according to a new study."
While Baby Boomers (ages 46 to 64) were largely responsible for the retail spending that fueled recoveries from previous recessions, this time the Boomers are rebuilding personal wealth lost during the recent recession and saving for their future.
Although Gen X is only 75 percent the size of the Baby Boom generation, 71 percent of them have children under the age of 18, which is a time of great spending. In addition, these individuals are approaching their peak earning years.
Generation Y members (ages 10 to 28) have plenty of time to earn and save for the future, and react less strongly to economic conditions. With 85 million people in this group, they outnumber the Boomers. And although 10-year-old children may not have jobs, they have purchasing influence. Have you seen a tween’s bedroom these days? It’s hard to maneuver through all of the stuff—Xbox, iPod, laptop, TV and more clothes than you can imagine.
The article further explains that Gen Y has always lived a life of instant gratification, and for them, a tech lifestyle is a need, not a want. Some of this tech “need” also bleeds over into the Gen Xers. In fact, I recently overheard someone talking about delaying a dishwasher repair so he could buy an iPad—that’s how people live today! Read the rest of the article from InterBusiness Issues here.
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