The young-adult life stage is marked by change. Between the ages of 15 and 34, people generally finish their formal education, move out of their parents’ homes and establish their own households, enter the workforce, marry, and have children. This means that the needs and interests of young adults change, sometimes rapidly. During this time, buying patterns and preferences are developed and set. Consequently, this is a critical market for many businesses, either because these consumers are currently the major purchases of certain goods and services, or because they will be an important element of the customer base in the future.

Today’s young adults are members of two different generations: the Millennials and Generation X. They differ somewhat in their outlook and behavior because of the substantially different sizes of these generations (Generation X is small compared to the Millennials) and because of differences in the surrounding culture during their childhood and “coming-of-age” period. However, they also share many of the characteristics of all generations born post-World War II, and some of the differences between them are primarily attributable to the fact that they are in different stages of life.

In 2004, people aged 15 to 34 accounted for 27.7% of the total U.S. population. In spite of the fact that two-thirds of married young adults are dual earners, households headed by people under age 35 have relatively low incomes.

This report examines the demographics and spending patterns of adults under age 35:

-- Demographics: population and household numbers, gender ratio, race and Hispanic origin, marital status, presence of children in the household, homeownership, employment, and income

-- Spending patterns: Expenditures on housing, transportation, food and beverages at home and away from home, health care, entertainment, and other expenditures (including insurance and pensions, cash contributions, education, personal care products and services), tobacco products, finance charges, legal and accounting fees, and funeral and cemetery expenses)

The demographic and spending data presented in this report is the most recent available. Although some of the data presented in this report is available from government web sites, the detailed Consumer Expenditure data is not posted online. In addition, much of the data in this report has been reorganized and/or summarized to provide the most useful and usable information possible.