4 Ways Millennials Are Quietly Losing Money as America Becomes Less 'Neighborly'
Twenty-first century technology has completely changed the way people communicate, mainly due to the predominance of texts, Zoom calls, social media platforms and other forms of digital communication. But it’s also led to a steep decline in the kind of face-to-face contact that used to be the norm.
Since 2012, the percentage of young adults who talk to their neighbors at least a few times a week dropped from 51% to 25%, according to new research from the American Enterprise Institute. In contrast, the decline was only seven points (63% to 56%) among seniors.
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The “less neighborly” trend has had a particular impact on millennials – and that impact goes beyond just social interaction. Here are four ways millennials are quietly losing money as America becomes less neighborly.
Remote Work Erodes Social Skills Needed for Career Advancement
Among all age groups, millennials are the most likely to apply for remote roles and also represent the highest number of remote workers, according to a 2024 study from the U.S. Career Institute.
Working remotely heightens millennials’ sense of social isolation because they spend so much time alone. It also erodes social skills that are important in advancing professionally and earning a higher income.
Research from Resume Builder found that 25% of remote employees say working remotely has led to a decline in their social skills. Among age groups, millennials are the “most likely” to note a decline.
From a financial standpoint, the main downside is that a lack of social skills can hurt your ability to earn more money.
A study released last decade by the Harvard Graduate School of Education found that jobs requiring high levels of both cognitive and social skills tend to see the “highest levels of employment and wage growth.”
They’re More Prone to Social Media-Induced Impulse Buys
The rise in social media has been a major contributor to the “less neighborly” trend. This is especially true of millennials, who came of age just as social media exploded as a cultural force.
As millennials lean further into social media as a way to connect, they’re also prone to make more social media-induced impulse buys, according to Cody Schuiteboer, president and CEO of Best Interest Financial, a Michigan-based provider of mortgage and personal finance services.
Millennials are much more likely than older generations to be influenced by social media when deciding whether to make a purchase, he said. And once they commit to a social-media induced impulse buy, they tend to spend a lot more money.
“The reasoning is obvious: Since they carry a mobile store in their pockets that gets them hooked, they can't resist the temptation,” Schuiteboer told MoneyLion. “In contrast, boomers barely perceive social media in that manner at all.”
Loneliness Has a Negative Employment Impact
Just as remote work can hurt social skills, social isolation in general has been linked to poor workplace performance, according to a report from the National Institutes of Health. This in turn can lead to lower-paying jobs and even unemployment.
“Lonely individuals [are] more likely to be unemployed and less optimistic about their career prospects,” the report said.
They Overspend on Food Delivery Services
As millennials spend more time alone, they also spend more time (and money) ordering food for delivery rather than preparing meals at home with friends or neighbors.
“The issue here is not with food itself. It's the various surcharges that come with the convenience factor,” Schuiteboer said. “Thus, a $14 meal easily turns into $24 if delivery, service fees, additional charges for the order size, etc., are added to the bill.”
This isn’t just an occasional thing, either. For many millennials, it happens “multiple times a week,” he added.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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