Three Savings Strategies Used By Millennials

The pressing desire for consumers to search for low prices lets us know that Millennial’s love great deals. Because of the volatile economy, individuals born between 1980 and 2000 are always looking for ways to save on purchases. Here are some savings strategies you should consider.

Even economists are noticing how conscious these consumers are being with their funds. How are Millennial’s capable of maintaining this frugal lifestyle consistently?

Millennial’s Use Social Media for Savings Strategies

You may or may not be a fan of social media, but it is one of the main ways this generation chooses to communicate. Individuals are sharing everything from their opinions to pictures of their dinner plate. Social media users are also sharing their shopping experiences. It is not uncommon to see someone promote a deal or coupon in their status.

savings strategies
Savings Strategies at the Mall

Millennial’s will search the web for the best deal

Since most shoppers have desktops or mobile devices, they can research a product before making a purchase. They can visit multiple retail websites and coupon websites for hours before finally making a purchase. They even look for the least expensive ways to handle obligations like paying bills and filing taxes. For instance, Millennial’s would rather use turbo tax software than visit a tax preparer in a shopping mall.

Millennial’s will usually stick to the price they wish to pay

Instead of allowing the store owner to set the price, Millennial’s are forcing these online retail merchants to adjust their prices. The amount of competition online gives this generation the upper hand. If store owners will not offer reasonable prices, these shoppers will click off and visit another site within seconds.

Millennial’s are always searching for the best price, and they will set a limit and stick to it. This generation is always looking for the best deal and rate. The internet allows them to compare prices from virtually everywhere. This great convenience gives them the ability to be frugal at all times.

Proposed Massachusetts Sales Tax On Internet Transactions

More and more consumers are choosing to make purchases online today. Retailers lure them on line with web sites or even mobile apps for smart phones that compare prices and features on items from diverse sources. One selling point is that such transactions are usually free of state sales tax. In Massachusetts, though, that may not be the case for long.

Even as members of most committees of the legislature leave town for the summer break, the Committee on Revenue quietly sent legislation that would let Massachusetts start collecting sales tax on transactions that take place on the Internet. Supporters say this sort of tax would increase revenues by $335 million every year. The proposal has sparked intense debate on the propriety of the practice as well as the specifics of the legislation. Wal-Mart is a major funding source for groups looking to add similar legislation in other states.

The bill, H 3672, was voted out of committee with an eight to two majority. Its purpose is to permit the state to collect the already established sales tax of 6.25 per cent from vendors who sell by mail otherwise taxable items to anyone in the state by phone or on the Internet without any physical facilities in Massachusetts. Implementing the new law would require enabling legislation from the US Congress. Massachusetts would be the 24th of 50 states to request such laws from Congress. In other states, revenue has not increased as expected as the retailer Amazon has ended ties with affiliates in those states, putting them out of business, and eliminating any taxable body in the state.

Critics paint the proposal as a new tax and a barrier to economic growth. Proponents point out that it merely seeks to collect taxes due but currently not paid. The additional money would supplement revenue streams from income tax and corporate and property taxes. The dollar amounts received from existing taxes is steadily decreasing, and coupled with unpaid taxes the decreasing revenues create a need for a new revenue source. Activists also point out that online tax free sales by Internet retailers are overwhelming brick and mortar retailers in Massachusetts and elsewhere.