Golin has launched a new study alongside the research company iSense Solutions, to find out how the current generations in Romania relate to money and how they manage their budgets. Only a few of the differences between consumers today: Millennians are more independent when it comes to shopping decisions, but overspend their monthly budgets. Baby Boomers and representatives of Generation Z save up the most, whereas those of Generation X have the largest incomes but also take out the largest loans.
On a market where there are simultaneously four active generations of consumers, it is absolutely necessary to understand what connects them and what makes them different, what spendings are important to them and how they spend their budgets. Therefore, we took a look at the shopping list and budget of each generation. As with every Bold study, we have obtained extremely valuable insights that help build relevant, creative and efficient communication campaigns, based on the consumer, their needs and consumption trends that have impact and deliver results for the business of companies and brands
Deputy Managing Director, Golin
The study targeted Internet users from the urban environment, divided into four distinct generations: Baby Boomers (55-65 years old), with a monthly personal budget of 2,407 RON, Generation X (39-54 years old) – with a monthly budget of 2,759 RON, Millennials (24-38 years old) – 2,305 RON and Generation Z (18-23 years old) – 914 RON.
Beyond the different allocation of resources for shopping, we also focused on the amounts of money spent by each generation on activities related to leisure time and personal development. It is encouraging to find out that youngsters are more and more interested in this aspect, as these spendings are considered important by almost a half of the Generation Z and Millennials versus 41% of Generation X and only a third of Baby Boomers
Managing Partner iSense Solutions
Romanians’ most important spendings are related to food and housing, a point of little difference between the generations. As such, food expenses are deemed important by 83% of the Generation X representatives, 81% of Millennials, 81% of Generation Z and 79% of Baby Boomers. Housing expenses are deemed important by 80% of Millennials and Generation Z representatives, 76% of Generation X and 72% of Baby Boomers.
However, there are noticeable differences in the case of other categories of products and services. For example, Generation Z and Millennials attribute a greater importance to shopping of clothes, footwear and personal care products than other generations (64% vs. 54% of Baby Boomers and 53% of Generation X). Childcare expenses are significantly more important for Generation X (62% vs. 48% of Millennials and Gen Z, 35% of Baby Boomers). In addition, relaxation and personal development activities are more important for Millennials and Gen Z (46%) than they are to Gen X (41%) or Baby Boomers (35%). Youngsters are also the ones to attribute a greater importance to donations and charity (22% of Millennials and Gen Z vs. 17% of Gen X and 16% of Baby Boomers).
Each month, the largest budgets are spent on food (753 RON) and housing (680 RON), categories that are part of all Romanians’ monthly spendings. Those with loans or debts allocate for them an average monthly budget of 734 RON. Also, a parent spends, in average, 398 RON each month for childcare expenses. Romanians’ wallet is also emptied on clothing / footwear and personal care (285 RON, taking into account only the consumers who are spending money each month on this category of products and services), savings / optional insurance (239 RON), public / privat transport (203 RON), investments (161 RON), relaxation and personal development (158 RON), pets (112 RON) and donations / charity (44 RON).
According to the study, the most economical are the Baby Boomers, with 54% of them being able to save money each month, compared to 49% of Gen Z, 45% of Millennials and 43% of Gen X. However, should the amounts set aside be considered, Gen X tops the list with 459 RON / month, compared to the Baby Boomers (409 RON / month), Millennials (350 RON / month) and Gen Z (312 RON / month).
At the opposite end, Millennials find it the hardest to stay within their monthly budget, 28% of them admitting they exceed it, as compared to 21% of Gen Z, 20% of Gen X and 19% of Baby Boomers. Generation X leads not only the top regarding savings, but also the one regarding the largest amounts borrowed. As such, Generation X representatives who do not stay within their mothly budget, overspend by an average of 457 RON / month, as opposed to Millennials – 419 RON / month, Gen Z – 364 RON / month, Baby Boomers – 305 RON / month.
The study was conducted by iSense Solutions exclusively for Golin and included a sample of 500 respondents – Internet users from the urban environment, aged 18-65 years. The data was collected online via ResearchRomania.ro, in April 2018, and is representative at urban level. The results of the survey have an error rate of +/- 4.38%, at a confidence level of of 95%.