[MrsPartridge]

Whenever I pop over to the outlet mall, I see so many young people shopping for designer clothes and bags. Most of the time, there is a long line at Kate Spades for bags and they buy several items at once.

Back in the 80s when I was their age, jobs were so plentiful but we still didn't have this kind of discretionary cash.

In the meantime, I'm happy with my Visa and Mastercard stocks. All those designer stocks like Kors and Lululemon are doing great and I see no end.

So where is the money coming from? I'd like to know so I can sleep at night knowing they're shopping at "my stores".

 

[treva84]

Whenever I pop over to the outlet mall, I see so many young people shopping for designer clothes and bags. Most of the time, there is a long line at Kate Spades for bags and they buy several items at once.

Back in the 80s when I was their age, jobs were so plentiful but we still didn't have this kind of discretionary cash.

In the meantime, I'm happy with my Visa and Mastercard stocks. All those designer stocks like Kors and Lululemon are doing great and I see no end.

So where is the money coming from? I'd like to know so I can sleep at night knowing they're shopping at "my stores".

Does it really matter? Does "them" shopping at "your stores" diminish your enjoyment / pleasure of your designer hand bags?

 

[MrsPartridge]

It matters because if they are spending money they don't have (parents' money or debt) it could dry up quick. I need to know that this will be a steady stream.

 

[new dog]

Also since the 80's they have to buy all the new cell phones, fancy coffee drinks and stuff.

 

[sags]

Parents money probably.

Parents are feeling the "wealth effect" of home prices rising 7-10% a year. That is a lot of money gained tax free on a $500,000 home every year.

I used to think it would all crash, but am doubtful now. I think the government would introduce 100 year mortgages if they had to.

 

[peterk]

Well sure lots are sitting at home spinning their wheels, but lots of 20 and 30 somethings are out making money at decent jobs, and are single with no kids and have disposable incomes for bags and clothes.

 

[OhGreatGuru]

To answer the question, debt may be how some are financing it. See https://www.cbc.ca/news/business/equifax-debt-loads-1.3884993
To my surprise 46 to 55 age group has the highest debt load. But maybe that age group is full of people who never learned to live within their means, so their debt just kept growing.

 

[treva84]

To answer the question, debt may be how some are financing it. See https://www.cbc.ca/news/business/equifax-debt-loads-1.3884993
To my surprise 46 to 55 age group has the highest debt load. But maybe that age group is full of people who never learned to live within their means, so their debt just kept growing.

So maybe the OP finances her bags with debt and she's jelly the millennial don't need debt for their designer goods?

 

[Pluto]

It matters because if they are spending money they don't have (parents' money or debt) it could dry up quick. I need to know that this will be a steady stream.

You wish it will be a steady stream, but it won't be. Cycles, MrsP, cycles. The party will end, there will be a hangover, then a new party will begin.

the money is coming from credt cards.

 

[Beaver101]

^ Whichever way - still parents' fault.

 

[MrsPartridge]

You wish it will be a steady stream, but it won't be. Cycles, MrsP, cycles. The party will end, there will be a hangover, then a new party will begin.

the money is coming from credt cards.

Credit cards is good. Visa and Mastercard are looking great. China is booming with new rich consumers to tap into so I'm counting on them too.

it's just that till now I've invested in old and true like Enbridge, BCE and banks but I'm venturing out to new growth stocks in consumer luxury brands. It's a slow season and I'm not sure if I did the right thing. But I have to watch the cycles.

 

[Brainer]

Well, I moved out at age 19. But I have to keep reminding myself that many people in the age group you mentioned are still living with their parents and see absolutely no reason to leave their parents houses. Ever.

 

[scorpion_ca]

I don't blame the young folks. I blame their parents to allow them to spend on whatever they want that there is no tomorrow.

My nephew is 11 years old and his parents purchase all the brand name cloths, shoes, games, sun-glass and etc for him. Recently they bough him a shoe for around $260. WTF? This disgusts me. Their annual income is around $85k-$90k and they have a mortgage of more than $250K. What do we expect from my nephew? When he will start to earn, he will spend all those money on designer goods as he has been buying it since his childhood.

 

[nathan79]

I wonder how many are Asian... lots of rich Asians in Vancouver for instance. They buy all the designer clothes and expensive cars, and it's obvious when you see a 19 year old with a Lambo that it's not their money (unless they bought it with Bitcoin or something).

No one I know was buying that kind of stuff... we all moved out in our early to mid 20's and we could barely afford the rent/mortgage. It's even more expensive today, so I don't see how young people are affording this stuff. Maybe a few have good jobs, but mostly I bet it's parent's money.

 

[peterk]

A tiny minority are getting significant funds from parents I'm sure, but the vast majority of young Canadians aren't getting anything (not counting crazy rich asians). How many of these 20-35 year olds are actually luxury brand wearing 20-24 year olds still in college? Not many at all. Majority of college kids live (happily I might add) below the poverty line, and if you're seeing a huge number of slightly older fancy young people, 25-35, it's because they got decent+ jobs with a disposable income and are spending it all, perhaps unwisely, on fancy things. But que sera sera.

And I wouldn't consider a consuming 20 something with a job who may have gotten some help with tuition over the previous years so that they now have minimal debts exiting college as "using parent's money" anymore. Nor would I jump on the band wagon of assuming every child of upper-middle-class upbringing with the finer things is somehow going to turn into a shallow, morally inadequate, financially reckless adult. If there's food on the table still then who cares?

 

[Big Kahuna]

A tiny minority are getting significant funds from parents I'm sure, but the vast majority of young Canadians aren't getting anything (not counting crazy rich asians). How many of these 20-35 year olds are actually luxury brand wearing 20-24 year olds still in college? Not many at all. Majority of college kids live (happily I might add) below the poverty line, and if you're seeing a huge number of slightly older fancy young people, 25-35, it's because they got decent+ jobs with a disposable income and are spending it all, perhaps unwisely, on fancy things. But que sera sera.

And I wouldn't consider a consuming 20 something with a job who may have gotten some help with tuition over the previous years so that they now have minimal debts exiting college as "using parent's money" anymore. Nor would I jump on the band wagon of assuming every child of upper-middle-class upbringing with the finer things is somehow going to turn into a shallow, morally inadequate, financially reckless adult. If there's food on the table still then who cares?

I think it is great that they spend their money-if the whole country starting behaving like us on this blog consumer spending in Canada would dry up real fast.

 

[Brainer]

Big Kahuna:

Maybe...until the next financial crisis.

 

[ian]

The people the we see overextending their credit are in there mid 40's to mid 60's. We notice increased frugality in the 30 year olds that we know.

And many are doing much of their shopping on line.