California Average Income
Due to a lack of public information on California's Gen Zers income expectations and this state's spending habits across different generations, we provided data for the US general population. Gen Zers in the US have higher income expectations compared to reality. Across generations, Americans have different spending habits, specially regarding online shopping, healthcare, and saving.
Gen Zers: Income Expectations
American Gen Zers Income Expectations Are High
- Current college grads overestimate their future salary, as they expect to make $57,964 after one year out of college. However, the national median salary for graduates with bachelor’s degrees who have zero to five years of work experience is $47,000.
- Undergraduates expect to be making mid-career about $95,400, while the national median salary at this stage is $80,450.
Women Gen Zers Expect Less Than Men
- Women with a bachelor’s or graduate degree expect to earn about $4,338 less than men in the first years of their career. On average, women expect to earn $56,121 and men expect $60,459.
- By their mid-career, women expect to earn $10,836 less than men.
Gen Zers Are Concerned About Money and Benefits
- According to a survey conducted by Concordia University, 65% of Gen Zers think salary is important, and 70% describe it as their top motivator.
- Around 58% of Gen Zers are willing to work nights and weekends for extra income.
- Also, 70% of Gen Zers say that their 'must-have' benefit is health insurance.
Spending Habits Across Generations
Gen Zers Prefer to Shop in Stores
- According to a survey conducted by A.T. Kearney, 81% of Gen Zers prefer to shop in brick-and-mortar stores, and 73% prefer to discover new products in stores.
- According to 58% of this generation, scanning through shelves and racks helps them "to disconnect from social media and the digital world."
- Approximately 47% of Gen Zers research products on mobile devices while shopping at physical stores.
Gen Zers Are Financially Savvy
- Gen Z’s spending power in the US is $44 billion.
- Gen Zers' digital expertise helps them to guide their families in product evaluation and purchases.
- They are also "keen on earning money" as 22% of them make money online, 24% work part-time jobs, and 16% work for themselves.
- Around 29% spend their free time "trying to earn extra money."
- Approximately 35% of Gen Zers plan to start saving for retirement in their 20s.
Gen Zers Like to Spend on Food
- According to a study, 24% of Gen Zers' money is spent on going out to eat. In 2018, they had 14.6 billion restaurant visits, and represent 25% of total food service traffic.
- They spend an average of $269 per month on groceries and $550 per household each month, from which 15% is spent on online grocery shopping.
- Around 75% of them are willing to pay more for "healthy" food. Healthy food would include "organic, fair trade, locally grown, vegan, or gluten-free."
Millennials Like to Spend More on Different Items
- Millennials like to spend on comfort and convenience. Around 60% of them spend over $4 on a cup of coffee, 70% are willing to spend more to eat out on a "hip restaurant", 69% buy clothes they don't need, and 50% spend their money on taxis or transportation apps.
- Compared to other generations, millennials spend more on groceries, gas, restaurants, cellphones, hobbies, electronics, and clothing. Millennial households spend about $615 on groceries per month.
- They represent about 25% of the $48 billion spent on lawn and garden products in 2018. They like to purchase plants for their homes because they think it is important for their overall well-being.
Millennials Like Shopping Online
- Millennials are not concerned about security when purchasing online. Only 11% of them say they will make their next purchase in a brick-and-mortar store. They make 54% of their overall purchases online.
- Around 40%, or more of them, search for reviews and testimonials before buying any products online.
Millennials Value Price Over Recommendations
- Millennials follow brands online to get discounts. Around 66% of them are willing to switch brands if offered a minimum of 30% discount.
Gen Xers Spend the Most
- From their average post-tax income of $88,794, Gen Xers spend $74,683 on average, outspending millennials and baby boomers. From this income, they save about 16%.
- Gen Xers have a total annual spending of $74,683, from which $14, 193 go to housing, $11,775 to transportation, $10,570 to personal insurance and pensions, $9,856 to housekeeping, and $9,826 to food. The rest is spent on healthcare, personal care products, entertainment, education, and alcohol and tobacco, among others.
Gen Xers Are Tech Savvy But Shop In-Store
- Gen Xers like to research products online at home and then shop in a physical store. About 82% of them buy in-store at least once a month.
- They prefer to discover new products by email and are more influenced by email marketing campaigns, according to 80% of them.
Gen Xers Are Brand Loyal
- According to 70% of Gen Xers, when they find a product they like, they keep purchasing it. Also, 88% of them join loyalty programs to save money.
- Approximately 48% say "they care a lot about their favorite grocery brands."
Baby Boomers Spend the Most on Healthcare
- This generation spends about $6,025 on healthcare, which represents 9.5% of their total spending. They are expected to spend 3.4% more on healthcare than their parents did.
- Over 4 in 10 of them believe that Medicare will cover their long-term costs of healthcare.
Baby Boomers Prefer In-Store Than Online Shopping
- Approximately 84% of boomers want to shop in-store and 67% say that they prefer to purchase unavailable items at a local retailer than order them online.
- However, 85% of them research products on the web and 27% have ordered groceries online for home delivery
Baby Boomers Don't Save Enough for Retirement