“Millennials love experiences.” You've seen that slide, heck, you’ve probably made that slide. While it’s still probably true, it’s not that helpful.
Because you don’t know:
- What kind of experiences they like
- When they’ll pay for an experience
- How they plan to pay for it
The good news is, we do. Because we track billions of transactions on multiple platforms Millennials use.
Here's what our newest look at our first-party data says about Millennial spending habits, and what to do with it if you’re trying to reach them.
Who Millennials Are Now (and Why They’re Worth Your Budget)
Millennials, born 1981 to 1996, aren't the shiny new generation anymore. Gen Z has closed most of the population gap. But what Gen Z hasn't closed is the income gap.
Millennials (and adult Gen Z) now command 32% of all spend in the U.S. But compared to Gen Z, millennials have 1.7x more disposable income and tend to spend more money.
Which makes sense — older millennials are farther along in their careers and in family-building and homeownership stages. Younger millennials are entering peak discretionary spending years. Both prioritize digital convenience and authenticity.Where Millennials Spend Their Money
Mostly Big Box Brands
In our 2025 report, we noticed Millennial cardholders spent the most money at big box stores. Sitting at 23% of category share, big box stores outpaced next spend categories by 13%+.
This year, spend looked relatively similar:
→ Big box retailers accounted for 20% of total Millennial spend, beating out next spend categories by 12%+.
→ Walmart led the way at 11% of overall Millennial consumer spend, nearly double what consumers spent on Amazon. Target, Sam’s Club, and Costco were up next, with roughly $218M - $436M in total spend.
And while big box leads in overall volume, the grocery vertical showed substantial activity, too, making up 7% of total spend. As you might imagine, Kroger and Publix were at the top of the pack.
With the Occasional Splurge in Other Categories
Big box wins on volume, but not on average order value. Discretionary purchases, like vacations, hobbyist equipment, and clothes, are where Millennials drop the most money.
These categories in particular:
- Travel, at $131 AOV
- Sporting goods, at $72 AOV
- Home improvement, at $53 AOV
- Fashion and apparel, at $56 AOV
- Home goods, at $54 AOV
- Department stores, at $53 AOV
- Beauty, at $46 AOV
This makes sense when you look at what’s happening in the culture. With the rise of AI, people want experiences that are more human.
When Millennials Buy
Mostly During the Week
In 2025, average daily spending was 27% higher on weekdays than on weekends. This year, there was an even bigger difference — 46% — but still a difference to pay attention to, particularly in certain categories, such as:
Remote work and flexible schedules have handed Millennials (and older Gen Z) the freedom to shop mid-week instead of hoarding it all for Saturday.
If your media plan is weekend-heavy by default, it’s worth a second look.
But at All Times of the Year
Nearly every retail calendar assumes that discretionary dollars magically appear in Q4.
But according to our data, Millennials spend at all times of year. And for many of the categories with the highest share of spend, spring and summer are big spending seasons:
How Millennials Tend to Pay
With Cards, Especially for Daily Essentials
In our dataset, financial services, gas & convenience, and grocery collectively represent 36% of total spend. Because Kard tracks debit, credit, and EBT card transactions, as well as receipt data, this pattern suggests that consumers rely on their cards for everyday necessities.
This lines up nicely with data from EY — debit cards are now the most popular payment method for Gen Z. 69% report using them daily or weekly.
A PYMNTS Intelligence report found 45% of online shoppers used credentials stored with a merchant for their most recent purchase, underscoring how stored payments and frictionless checkout now influence conversion.
It’s really tough to scale loyalty in essential categories, where repeat behavior is high, and differentiation is rare. Brands have an opportunity to differentiate themselves in these highly commoditized spaces with performance-based rewards.
A survey by IPSOS found that 70% of Americans prefer to pay by credit or debit to earn rewards or points. 65% of Americans open a new credit card specifically for the rewards it offers.
Or With Alternative Payment Methods, Where Possible
Alternative payment methods gained significant share throughout the year, with the financial services category growing steadily throughout 2025 (reaching over $8B), suggesting consumers prefer a seamless and frictionless buying experience.
PYMNTS found that 18% of Gen Z use buy now, pay later (BNPL) products alongside other pay-later methods, compared with 12% of older consumers.
They’re also paying closer attention to their finances. A Bank of America study found that 72% of young adults are taking actions to improve their financial health. That lines up with our data:
Financial services captured 20.2% of Q4 spend, reflecting a cardholder shift toward year-end banking, insurance, and financial planning activities.
Steady growth in finserv throughout the year underscores the need for retailers to expand payment options. At least 65% of shoppers said they used or wanted to use preferred payment methods and rewards during their most recent purchase.
Partnering with performance-based rewards platforms that already have networks of banking apps, rewards platforms, and fintech services that young consumers use can expand the audience your brand reaches (and boost your revenue).
What Moves a Millennial to Buy
Millennials tend to be motivated by 3 things:
1. Price sensitivity
In a study by Swift Prepaid Solutions, 80% of Gen Z and millennial buyers said price is the most critical factor when making a purchase. They’re always looking for a deal. And it’s why so many brands are offering discounts, promotions, and flexible payment options to influence millennial buying decisions.
2. Values
Beyond price and convenience, Gen Z and millennials want to support brands that align with their values. Sustainability, ethics, and brand authenticity play a major role in their purchasing decisions.
Per Deloitte, 63% of millennials are willing to pay more to purchase environmentally sustainable products or services.
3. Omnichannel availability
Unlike older generations that separate online and offline shopping, digitally native consumers aren’t afraid to use multiple buying channels. A majority of millennials use their phones to shop (either via ecommerce sites or social media), yet one survey found that nearly 38% of millennials preferred primarily shopping in-store.
To give you a taste of just how disjointed the experience is — and just how many channels you need to be on to get her business — let’s look at it from a younger Millennial’s perspective:
Emma is scrolling on TikTok and stops to watch an influencer do a sneaker try-on. This plants the seed: she wants some new shoes.
To capture her at this stage, you need: a TikTok presence
Days later, she does a passive search for sneakers on Instagram. A few brands stick out, but ultimately, she’s just browsing and doesn’t actually buy anything.
To capture her at this stage, you need: an Instagram presence
The next day, she can’t get the New Balances she saw out of her head. So she goes to their website, scrolls the product page and reads reviews. She adds the shoes to her cart, but exits the site without buying.
To capture her at this stage, you need: Compelling webcopy, reviews
Then, price sensitivity kicks in. She checks resale sites for the shoes and tries to find promo codes to no avail.
To capture her at this stage, you need: Discounts
While she waits for a deal, she asks friends for opinions and looks for real customer posts for validation.
To capture her at this stage, you need: Social proof
Finally, she sees an exclusive cash back discount for New Balance shoes in her banking app and swipes her credit card, feeling like she got the best bang for her buck.
To capture her at this stage, you need: Rewards offer
What Brands Targeting Millennials Can Start Doing Today
1. Selling Through Big Box Stores
If you’re not selling at or through big box stores (especially if you work for a food and bev, home goods, or retail brand), it would behoove you to push harder to get your foot in the door.
Especially at up-and-coming big box, grocery, and discount stores, such as:
- Aldi. 2x the number of US consumers shop at Aldi than they did 6 years ago.
- H-E-B. Ranked #3 on the 2026 American Customer Satisfaction Index.
- Meijer. Which is expanding into Ohio and Pennsylvania.
- Dollar General. They plan to open 450 new stores this year, with a focus on rural
2. Figuring Out What Makes Your Product Splurgeable
You need to figure out (1) what makes your product “splurgeable” — aka very cool, valuable, and desirable — and (2) how to encourage that splurge. It’s a delicate balance, given how price-conscious younger shoppers are.
But there are ways to do it. Consider cash back rewards.
A 3 to 5% cash back offer can be the difference between a consumer clicking “Place Order” and letting high-value products sit in their cart until they see a better promo. You can even up the stakes with other dynamic offers, like:
- “Flash” offers, where a user can only redeem during a certain period of time
- “While supplies last” offers, where users can only redeem an offer while it’s still available. Once a set number of users have redeemed an offer, it closes.
- Tap-to-boost offers, where users tap on an offer to “boost” the rate (tap to go from 5% to 8% cash back, for example)
3. Save More Budget for Q1, Q2, and Q3
Don’t waste your marketing budget on sky-high CPCs during the holiday season.
Instead, they should focus on pay-for-performance brand awareness strategies, like rewards-based marketing, so people think of their brand when they’re ready to spend come springtime.
4. Figuring Out What Makes Your Product Splurgeable
Try running day-specific promotions and rewards-based offers to encourage consumers to buy online or in-store.
Optimize when ads are shown, too. Perhaps on Sunday or Monday, to drive purchases during the week.
Target Millennials Where They Are
Millennials have reshaped how value is defined. They reward brands that save time, reflect integrity, and create memorable experiences.
And as their influence grows, both in income and cultural weight, brands that adapt will capture not just their wallets but their long-term trust.
Not 100% sure you’re reaching millennials where they shop? Using predictive AI and first-party transaction data from millions of Gen Z and Millennial shoppers, Kard powers hyperpersonalized offers that scale customer acquisition.
Want to see it in action? Book a demo today.
FAQs About Millennial Purchasing Habits
What defines millennial purchasing habits in 2026?
Price sensitivity, a quick trigger finger on brand switching, and a growing appetite for flexible payments. Millennials still spend the most per transaction on discretionary, experience-driven categories, but they research and compare before they commit.
How do millennial and Gen Z spending habits differ?
Millennials have 1.7x more disposable income and spend more per transaction. Gen Z is quicker to try fintech-first payment options and switches brands even faster. Both respond to the same three signals: price, proof, and convenience.
Why do millennials favor experiences over products?
Because the data says so, not just the surveys. Travel carries a 459% higher average order value than the platform average, with several other discretionary categories sitting well above baseline.
Has millennial payment behavior changed recently?
Yes. Alternative payments like BNPL, Venmo, and PayPal grew from 9% to 12% of spend in under a year, a 33% jump. Millennials increasingly treat payment flexibility as part of the purchase itself, not an afterthought at checkout.
What's the best way for brands to reach millennials in 2026?
Time your campaigns around weekdays and Q1 for discretionary categories, rather than defaulting to weekend- and holiday-heavy plans. Then pair that timing with cash back or reward incentives on higher-AOV categories, where price sensitivity and willingness to spend actually overlap.
