SAN FRANCISCO — Visa USA, the nation's largest credit and debit card brand, has begun looking toward what it called a generational shift in spending patterns as the purchasing momentum moves from Baby Boomers to younger generations, which Visa identified as Echo Boomers.
"We are witnessing a watershed moment in our economy's history as one generation transfers their economic influence to another," said Wayne Best, Visa's chief economist. "As Echo Boomers expand as a proportion of the American workforce and mature as consumers, they will continue to spend heavily in service industry retail categories such as restaurants, travel and entertainment."
When it comes to spending, the study also found that Echo Boomers are more likely to listen to their parents, spouses and children rather than members of their own generation. While Baby Boomers tend to rely strongly on their spouse's input, however, they rarely look to their younger counterparts for buying cues, Visa said.
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The research found that Echo Boomers cited dining out at restaurants as their second largest expense (45%), after housing costs (69%) in a given month. And they are aware of it. When asked which of their monthly expenses they should cut back on, 43% of Echo Boomers also cited dining out at restaurants.
Visa has already seen declines in spending throughout the restaurant sector indicating that consumers are willing to cut back on discretionary items as the price of gasoline continues to move upward.
Approximately 20% of Echo Boomers said that travel and vacations are a major or moderate expense every month, a considerable portion of their income considering their young age.
Significantly, Echo Boomers appear to value time and experience more than money or possessions. If they could reward themselves, 35% of Echo Boomers would choose a day off just for themselves followed by going to a special concert or sporting event (22%), going out on the town (15%), going to a spa (13%) and buying new clothes (11%).
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