Consumer spending is up, but I highly doubt Millennials are driving the trend. Many people are surprised when I describe Millenials as ‘frugal’, but the Gen Y’ers I know agree wholeheartedly.

As a generation, these children of the free-spending Boomers are tightwads who love a bargain.

There are probably many reasons for their collective thriftiness. Here’s a possible list of reasons why Millennials are such pennypinchers.

1. They hate waste. Efficiency is a core Millennial, value – they don’t like to waste time, money or any other resource.

2. Indecisiveness. Millennials often prefer to make no decision than the wrong decision. I think it has to do with fear of closing doors on possible opportunities more than indecisiveness, per se.

3. Cash-strapped. Many are students, unemployed, or underemployed; Increasingly, they are up to their eyeballs in college loan debt. Penny pinching is a rational response.

4. Fear of being cash strapped. Even those who are employed aren’t sure when they might need a rainy day fund.

5. Self-perceptions: Even if they aren’t cash strapped, they like to think of themselves as smart shoppers.

6. Debt averse: They don’t want to borrow any more unless they absolutely have to – including a car, a house, an education.

7. Eye on the future: Many want to use money to make money. They have a long term view.

8. Non-materialistic: This usually gets an incredulous laugh. But it’s true that they value experiences over things. They aspire to travel light in the world.

9. Saving is a game: It can be fun to see how far you can stretch a dime or a dollar.

10. Saving yields social currency: Knowing about how to get the best deals makes you a valuable resource to others.

How can marketers get Gen Y to open their wallets, purses, and smart cards?

1. Have a heart. Link the purchase to something they care about, such as a worthy cause, a passion or interest. Starbucks Project Red is a good example.

2. Offer deals not discounts. Is there a difference. You bet. To a Millennial, a deal is something you have to work for. You earn it or its exclusive. Anybody can have a discount, but a deal is special.  This insider-ness is behind the appeal of QR codes, Groupon, and Foursquare offers.

3. Demonstrate why it’s smarter in the long run. Deals and incentives that expire, long-term benefits and savings over time are all time tested ways to incent a purchase now.