5 Spending by affluent millennials never cuts out of their budgets

Jacob Ammentorp Lund/Getty Images/iStockphoto

Jacob Ammentorp Lund/Getty Images/iStockphoto

When it comes to spending, it’s important to give up some luxuries in the name of planning for the future. But there are some expenses that affluent millennials will never eliminate from their budgets. Whether it’s for health reasons or personal aesthetics, there are some things they refuse to move.

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In general, the different generations in modern America do not share similar views of the world, said Dan Kroyter, financial expert and CEO of Tailored Pay.

Below are some expenses that wealthy millennials never eliminate from their budgets.

High-end gym memberships and personal trainers

In my experience, affluent millennials prioritize health and fitness, investing in exclusive gym memberships and personal trainers, said Justin Godur, financial advisor and founder of Capital Max.

They appreciate the personalized fitness plans and luxury amenities offered by high-end gyms, which offer not only a status symbol, but also a tailored approach to their well-being.

Joshua Katz, founder of Universal Tax Professionals, noted the same.

Many affluent millennials invest heavily in premium fitness memberships and are totally obsessed with them, he explained. These aren’t your typical gym memberships, but access to exclusive fitness clubs, boutique studios and specialized wellness programs.

Elite memberships at high-end establishments like Equinox or specialized fitness programs like SoulCycle can be significantly more expensive than standard gym options.

He said the main reason behind this spending is that affluent millennials prioritize health and wellness, seeing it as essential to their lifestyle and overall well-being.

These premium memberships offer more than just a place to exercise; they offer a community, a status symbol, and access to the latest fitness technology and personalized training.

The perceived benefits of improved health, social connections, and prestige associated with these memberships justify the higher cost for this demographic.

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Premium Car and Health Insurance

Despite the availability of cheaper options, I have noticed that affluent millennials often opt for more expensive car insurance policies, Godur said.

They appreciate the extensive coverage and peace of mind that premium policies provide, providing protection against potential risks.

He noted that this is especially true for those who own high-value vehicles, where comprehensive insurance is a must.

John F. Pace, CPA and tax manager for Pace & Associates CPAs, shared a similar sentiment.

Luxury car insurance is often considered non-negotiable, he explained. Instead of opting for the cheapest option, they prefer comprehensive coverage that offers more than just basic protection.

In a past case, a customer chose an insurer that offered additional benefits such as full replacement cost, roadside assistance and coverage for custom parts and equipment, he said. This made sense as it matched their overall investment in quality of lifestyle and ensured minimal disruption in the event of an accident.

Likewise, Pace said the same is true with investing in premium health coverage.

Ive worked extensively with high net worth individuals, including wealthy millennials. One expense they never cut from their budgets is premium health insurance.

Despite being healthy, they value premium coverage for peace of mind and access to the best healthcare.

Pace added that this is especially true for millennials who travel frequently or engage in high-risk hobbies.

For example, a client who enjoys scuba diving insisted on a policy that includes emergency evacuation and specialist medical care, even though it is significantly more expensive.

Luxury travel experience

When it comes to travel, affluent millennials don’t settle for the ordinary, Godur said. They are willing to spend on luxury travel experiences, such as private jets, five-star hotels, and custom travel itineraries.

The desire for unique, curated experiences and exceptional service drives them to invest in premium travel options, creating unforgettable memories.

Designer clothing and accessories

Fashion is another area where affluent millennials don’t compromise, Godur continued.

Investing in designer clothing and accessories allows them to express their individuality and status. From my perspective, this set exemplifies the craftsmanship, exclusivity and brand prestige associated with high-end fashion, making it a worthwhile splurge.

As a financial advisor, he said understanding these spending habits is essential to tailoring financial advice and services to meet the unique needs of affluent millennials.

By knowing their preferences for quality, exclusivity and personalized experiences, financial advisors can better serve this affluent demographic.

Professional Financial Planning

According to Pace, another expense that millennials refuse to cut is professional financial planning and investment management services.

Many affluent millennials understand the importance of growing their wealth and protecting their assets, Pace said. They willingly pay for expert advice to navigate complex financial landscapes, including tax-efficient investment strategies.

For example, a Forbes 400 family I worked with ensured that their millennial heirs had access to top-tier financial planners, which helped them effectively manage private trusts and foundations while optimizing tax liabilities.

In general, Pace said affluent millennials prioritize the above expenses because they provide not only tangible benefits, but also peace of mind, allowing them to focus on wealth generation and lifestyle enjoyment without unnecessary worry.

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This article originally appeared on GOBankingRates.com: 5 Expenses Wealthy Millennials Never Eliminate From Their Budgets

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