- HIFI refers to people with high incomes who are economically unstable.
- They are primarily made up of Millennials and Gen Z who like to flaunt their wealth.
- However, deteriorating lifestyles and inflation may be negatively impacting their financial future.
Many Americans want to appear wealthy. To do this, some people seek inspiration from their favorite celebrities or want to keep up with rapidly changing trends. Either way, they’re spending a lot of money.
People who fall into this category are HIFI, or high-income, financially unstable individuals. They are primarily made up of Millennials and Generation Z. According to Sherwood NewsPeople who want to exude “old money” or “quiet luxury” but are struggling to keep up with lifestyle changes. HIFI joins the ranks of DINK, HENRY, and ALICE as the latest acronym to represent an aspect of America’s economic experience.
People under 40 accumulate more wealth earlier in life than previous generations, but According to a survey, 48% of Gen Z and 59% of Millennials say they feel behind financially. credit karma investigation A survey of 1,006 U.S. adults released in December.
This is due to a combination of inflation that keeps prices high, the rising cost of living in U.S. cities, and the end of pandemic-era government cash injections combined with student loan and credit card debt. It is possible that
HIFI is redefining spending standards at its own expense
Sherwood News reported Many HIFI consumers’ high spending began during the pandemic. Stimulus checks provided additional income for young people, and as people stayed home, they spent more money on online shopping instead of restaurants, recreation, and vacations.
According to , the “buy now, pay later” features of credit cards, Amazon, and other online platforms are further fueling these purchases. 2024 Adobe Report. According to the report, shoppers find products more affordable when they can pay in installments.
Many Americans also haven’t cut back on their pandemic-era shopping habits, even as they resume social spending as restaurants and vacation destinations reopen.
Additionally, there are social reasons for HIFI’s behavior. That is, people want to feel wealthy.
around schwab survey Of the 1,000 Americans in 2023, younger people are more likely to measure their wealth relative to their peers. If a friend or social media celebrity owns something, Gen Z and Millennials won’t want to miss out.
Some buy the same expensive clothing and accessories they’ve seen on celebrities or on social media, while others look for camo.
In fact, according to one study, Millennials and Gen Z contributed to a 22% increase in luxury spending in 2022. Bain & Company Report Published in January 2023.
But for many, this consumer culture is not sustainable.
HIFIs increasingly face financial disconnect. Although they are wealthy, their income is often not sufficient to overcome the extravagant expenses and high costs of daily life.
Many HIFIs struggle to withstand rising housing and food costs, yet still spend a significant amount of their income on recreation and personal care.and financial and fintech news companies Pimz A February/March report found that 36% of millennials living in U.S. cities with annual incomes of $200,000 or more are currently living paycheck to paycheck.
Are you HIFI? Do you mind sharing how you incorporate recreation and luxury spending into your budget? If so, please contact this reporter. allisonkelly@insider.com.
