The economy is a big thing. It shapes what we do, feel, and think. And it affects our wallets too. From the stock market to the housing market, economic factors have an effect on us and what choices we make.
Young professionals are no different when it comes to their buying habits– they’re affected by economic factors too, but they have that unique perspective of being fresh out of school and just trying to find their footing in the world without any help from anyone else (even though everyone wants them). So let’s dive into the question of what economic factors affect today’s young professionals and how they spend their money.
What Does Economics Say?
To be more specific, what does economics say about young professionals and how they spend their money? “The fact that young people who aren’t students are saving less than in previous decades means the average monthly saving is much lower.
The percentage of those under 50 who reported not having enough to cover a £1,000 unexpected expense has doubled from 13% in 2003 to 27% in 2012.” *Source: BBC News, 2013 This lends credence to the idea that economic factors do affect young professionals as well as adults more broadly. But it’s not the only thing that economics says about young professionals.
Financial Security versus Non-Economic Factors
First, let’s keep in mind that many of the things that economics has to say about young professionals are based more on statistical trends than actual changes in habits.
It could be that there isn’t anything different in their habits or buying habits as compared to older adults because there is no change due to economic factors. For example, it’s been noted that young professionals don’t save as much money as they used to– but this could just be due to longer lifespans and time spent at home, not a decrease in saving habits.