- Rich millennials have different financial behaviors and habits than rich baby boomers do.
- Growing up in an age of technology, millennials tend to display their wealth on social media, buy luxury goods online, invest in cryptocurrency, and dress more casually.
- Millennials also define wealth differently, equating it more with success and purpose than baby boomers do, according to a study by Boston Private.
It doesn't take everyone a lifetime to build wealth, some get there a lot faster than others and get to enjoy their wealth at an earlier age.
According to a SmartAsset study, 11% of high-net-worth households consist of adults ages 18 to 33. Millennials also comprise 13% of the "wealth and affluent market" - households with at least $100,000 in investable assets - Michael Kaplan of the New York Post reported, citing a study by Wealth and Affluent Monitor.
These rich millennials are redefining luxury and creating a new image of affluence, according to Larissa Faw in a piece for Forbes.
Compared with affluent baby boomers, affluent millennials invest more in things such as health and wellness, experiences, and cryptocurrencies. Growing up in an age of technology, they love to show off their wealth on social media and are more likely to buy luxury items online. They also look different, opting for more casual attire than previous generations.
These behaviors might be attributed to the fact that millennials define wealth differently - more so with purpose, success, and an overall broader version of happiness, according to Boston Private's 2018 "The Why of Wealth" report.
See how rich millennials are different from rich baby boomers.
Rich millennials prefer to spend on experiences, not things.
Millennials, in general, prefer to spend their money on experiences over things - they pay more for things such as travel, entertainment, and dining compared with their parents and grandparents, according to findings by JPMorgan.
But this is especially true of wealthy millennials in particular. They aren't drawn to money or traditional status symbols, according to Faw. Instead, she said, they crave experiences.
"They will vacation in Ibiza with their buddies or fly to New York City for the weekend," Andrew Moultrie of Extreme International, a sports-lifestyle brand rich millennials favor, told Faw. "They see the richness in the storytelling of having an experience, rather than buying one expensive item."
Spending among younger millionaires has shifted to "the experience economy," Lauren Sherman wrote in a Business of Fashion article. This is strongly seen in personal transformations - "think health and wellness, but also travel and food experiences - where what you are really buying is a better you," she wrote.
They flaunt their experiences — and other displays of wealth — on social media.
Millennials also crave validation, according to Faw - they love to show off their experiences on social media. "What affluent Millennials prioritize is the awesome group photo that can be posted on their Facebook wall," she wrote.
Just look at the "Rich Kids of Instagram," now known as "Rich Kids of the Internet," a group of millennial influencers known to flaunt their wealthy lifestyles on social media. They've shown off everything from beach vacations in Malaysia to their private jets and yachting trips around Monte Carlo.
Most recently, rich millennials took part in the "Falling Stars Challenge" on social media.
"As the name vaguely implies, the challenge showcases rich people pretending to fall out of their expensive vehicles, such as cars, private jets, and yachts, and some choose to 'accidentally' spill the contents of their designer purses on the ground," Zeynep Yenisey of Maxim wrote.
Because baby boomers didn't grow up with this technology, social media wasn't part of their lifestyle then or today - at least, not to the extent that it is for millennials.