Nearly 40% of Millennials Turn to Side Hustles to Pay Bills

Even as millennials age into increased financial responsibility, more members of the generation are having trouble making ends meet.

Now aged between 27 and 42, the generation is statistically likely to be mid-career and taking on the financial strain associated with raising a young family. At any time, keeping ahead financially at this stage of life would be difficult, but it has gained difficulty as elevated inflation burns through the budgets of all types of consumers. Perhaps as a result of these converging factors, nearly three-quarters of millennials are living paycheck to paycheck, per PYMNTS’ April collaboration with LendingClub, “New Reality Check: The Paycheck-to-Paycheck Report.”

These generation-leading numbers are set to rise as debt delinquencies go up. It is likely no coincidence that this generation also holds the highest share of consumers with a side job, as illustrated in PYMNTS’ March edition of the same series with LendingClub, “New Reality Check: The Paycheck-to-Paycheck Report.”

As defined in the March report, side jobs may include both informal tasks and gig work, with other non-work forms of supplemental income including selling artisan or used items. These alternative income sources are often accessed through online marketplaces or via mobile apps.

Millennials’ busy lifestyle may be a driver behind a number of purchasing choices and behaviors that could be opportunities for savvy businesses catering to the generation. This includes the age cohort’s preference for online grocery shopping, as 42% opt for its time-saving conveniences, a choice grocers catering to the cohort should note. It may also include an opportunity for financial institutions to consider offering the budget tools and payment options millennials seek, such as financial guidance, wealth building assistance and bank-backed buy now, pay later (BNPL) options.

Millennials are most feeling the pinch these days as the economic landscape continues its rocky turns. Businesses catering to the generation may consider tools to help ease their busy lifestyles in order to keep millennial customers coming back.