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Millennials Making More Happen With Less [Chart]

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Millennials Spending Habits [Chart]

Millennials Making More Happen With Less [Chart]

Recent survey sheds light on millennial spending habits

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

Despite the Western world’s general shift towards healthier eating, it may surprise you to learn that McDonald’s shares traded at all-time highs just days ago.

How is this possible?

Part of the reason is that although millennials will tell you otherwise, the name of the game for courting many millennials is still convenience. Price points at a restaurant such as McDonald’s still have wide appeal to a cash-strapped generation.

Based on a recent survey by TD Bank, the convenience trend is still on track. Here’s what we learned on millennial spending habits from the results.

Getting More out of Less

A major finding of the survey was that although millennials “go out” twice as often as Generation X and three times as often as Baby Boomers, they spend less per month on purchases than their older cohorts.

Millennials made more purchases on retail goods and dining than other generations, but spent less money overall. In fact, the only category where Millennials spent more than Gen X and Boomers is on coffee and fast food – demonstrating a need for food on the run and frequent doses of caffeine.

The average millennial went out 13 times each month, spending $103 for an average of $7.90 per transaction. This compares with nine trips with $122 of spend ($17 per transaction) for the average consumer.

The same was the case for grabbing “coffee and food on-the-go”, where millennials said that they went on more trips than the average consumer. Millennials also spent a higher total than others, spending $80 over 11 trips (compared with $67 over eight for the average consumer).

Experiences vs. Material Items

While the survey paints a picture of millennial thriftiness, we also think that there is another lens that can be used to shed light on the results. In particular, we believe this shows that the value that millennials place on having experiences.

To many millennials, “going out” is as much about the experience as the material food itself. Whether it is connecting with old friends at a new thin-crust pizzeria or trying a locally-roasted single-origin coffee with a significant other, it’s often more about sharing an experience with good company. It doesn’t have to be a fancy dinner or involve a $100 bottle of wine purchase to count as quality time.

This could be a partial reason behind a higher frequency of trips out, even though less money gets spent overall.

Cash vs. Credit

A final point of interest from the survey lies in the difference in how millennials make discretionary purchases.

On average, Americans spend $4,700 per year with a credit card, and $2,400 with cash, a debit card and checks for discretionary purchases. Millennials tend to use cash, a debit card and checks more often ($5,200) and charge 22% less ($3,300) than the average consumer

Millennials, many of whom grew up during the Financial Crisis, are more averse to debt. This is corroborated by the results of a different survey showing that seven out of 10 millennials say they would prefer to use a debit card, rather than a credit card, for their purchases.

It’s also an attitude that we’ve covered in a previous chart of the week, where we showed that only 37% of millennials were confident in managing their credit, while 70% of millennials hold their savings and investments in cash.

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Chart of the Week

The Economies Adding the Most to Global Growth in 2019

Global economics is effectively a numbers game – here are the countries and regions projected to contribute the most to global growth in 2019.

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The Economies Adding the Most to Global Growth in 2019

Global economics is effectively a numbers game.

As long as the data adds up to economic expansion on a worldwide level, it’s easy to keep the status quo rolling. Companies can shift resources to the growing segments, and investors can put capital where it can go to work.

At the end of the day, growth cures everything – it’s only when it dries up that things get hairy.

Breaking Down Global Growth in 2019

Today’s chart uses data from Standard Chartered and the IMF to break down where economic growth is happening in 2019 using purchasing power parity (PPP) terms. Further, it also compares the share of the global GDP pie taken by key countries and regions over time.

Let’s start by looking at where global growth is forecasted to occur in 2019:

Country or RegionShare of Global GDP Growth (PPP) in 2019F
China33%
Other Asia (Excl. China/Japan)29%
United States11%
Middle East & North Africa4%
Euro Area4%
Latin America & Caribbean3%
Other Europe3%
Sub-Saharan Africa2%
Japan1%
United Kingdom1%
Canada1%
Rest of World8%

The data here mimics some of the previous estimates we’ve seen from Standard Chartered, such as this chart which projects the largest economies in 2030.

Asia as a whole will account for 63% of all global GDP growth (PPP) this year, with the lion’s share going to China. Countries like India and Indonesia will contribute to the “Other Asia” share, and Japan will only contribute 1% to the global growth total.

In terms of developed economies, the U.S. will lead the pack (11%) in contributing to global growth. Europe will add 8% between its various sub-regions, and Canada will add 1%.

Share of Global Economy Over Time

Based on the above projections, we were interested in taking a look at how each region or country’s share of global GDP (PPP) has changed over recent decades.

This time, we used IMF projections from its data mapper tool to loosely approximate the regions above, though there are some minor differences in how the data is organized.

Country or RegionShare of GDP (PPP, 1980)Share of GDP (PPP, 2019F)Change
Developing Asia8.9%34.1%+25.2 pp
European Union29.9%16.0%-13.9 pp
United States21.6%15.0%-6.6 pp
Latin America & Caribbean12.2%7.4%-4.8 pp
Middle East & North Africa8.6%6.5%-2.1 pp
Sub-Saharan Africa2.4%3.0%+0.6 pp

In the past 40 years or so, Developing Asia has increased its share of the global economy (in PPP terms) from 8.9% to an estimated 34.1% today. This dominant region includes China, India, and other fast-growing economies.

The European Union and the United States combined for 51.5% of global productivity in 1980, but they now account for 31% of the total economic mix. Similarly, the Latin America and MENA regions are seeing similar decreases in their share of the economic pie.

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Map: Cities With the Most Ultra-Rich Residents

What cities are the world’s ultra-rich flocking to? This map looks at ultra high net worth individual (UHNWI) growth rates in cities around the world.

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Mapped: The Cities With the Most Ultra-Rich Residents

As of 2018, there is a grand total of 198,342 ultra high net worth individuals (UHNWIs) globally with assets over US$30 million, according to the most recent edition of Knight Frank’s Wealth Report.

Although these millionaires and billionaires can be found all over the globe, the reality is that most of the world’s ultra-rich population tends to congregate in world-class cities.

Generally speaking, UHNWIs are looking to live in places that are conducive to safeguarding and growing their wealth, but that also give them access to top-end amenities that allow them to live comfortably and luxuriously.

Top 10 Cities for the Ultra-Rich

To start, we’ll look at a list of global cities, organized by expected number of UHNWIs in 2023:

RankCityUHNWIs (2018)UHNWIs (2023e)Change (%)
#1🇬🇧 London4,9446,01521.7%
#2🇸🇬 Singapore3,5984,39322.1%
#3🇯🇵 Tokyo3,7324,12510.5%
#4🇺🇸 New York City3,3783,89115.2%
#5🇨🇳 Beijing1,6732,24734.3%
#6🇫🇷 Paris1,6672,03121.8%
#7🇰🇷 Seoul1,5942,02026.7%
#8🇹🇼 Taipei1,5191,86422.7%
#9🇨🇭 Zurich1,5071,79619.2%
#10🇨🇳 Shanghai1,2631,69033.8%

London continues to top the list, with a roster of 4,944 ultra-rich residents today and the projected growth over the coming years to eclipse the 6,000 mark by 2023.

Tokyo has the second highest amount of UHNWIs today, but the city is adding them at a slower rate than other rival cities. As a result, Singapore will move into the #2 spot overall by 2023, with an expected total of 4,393 high net worth residents.

Finally, it’s worth noting that only two cities on the top 10 list are expected to see growth above a 30% clip over this five-year period. Shanghai and Beijing could be cities to watch for decades to come, as they add millionaires and billionaires at a faster rate than any of the other heavyweights.

Fastest Growing Cities

Where are the billionaire meccas of the future?

Here are the 10 cities that are expected to add UHNWIs the fastest between 2018-2023:

RankCityUHNWIs (2018)UHNWIs (2023e)Change (%)
#1🇮🇳 Mumbai7971,10138.1%
#2🇮🇳 Delhi21129137.9%
#3🇵🇭 Manila 11515736.5%
#4🇨🇳 Shenzhen52770834.3%
#5🇨🇳 Beijing1,6732,24734.3%
#6🇨🇳 Guangzhou39452934.3%
#7🇨🇳 Shanghai1,2631,69033.8%
#8🇮🇩 Jakarta40152931.9%
#9🇲🇾 Kuala Lumpur37649631.9%
#10🇰🇷 Seoul1,5942,02026.7%

Not surprisingly, all 10 of these cities are located in Asia.

Two Indian cities (Delhi and Mumbai) top the list, and are likely to add nearly 40% to their ultra-rich populations over the next five years. China also has a strong showing here.

Interestingly, just missing the above top 10 were a few non-Asian cities: Auckland (#11), Madrid (#12), Munich (#13), and Nairobi (#14) are all expected to grow their UHNWI populations by roughly 25% by 2023.

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