What are millennials spending the most on?
Older generations often question millennials’ spending habits but what does scientific research have to say about that?
A recently published survey by New York-based financial services company Bankrate revealed that it’s actually basics, namely food and gas, that are taking up the most of Gen Y consumers’ budgets. And it doesn’t stop here, as millennials do not only allocate the most money to these categories, but also spend an average of $2,300 more per year on them than older age cohorts.
Filling the fridge, and the belly
Surveyed millennials reported spending a total of $797 on groceries per month, which surpasses the amount spent by any other generation on grocery shopping. “Feeding millennials’ expanding families can really add up,” the study report reads.
But being the age cohort spending the most on groceries does not seem to reduce millennials’ vast appetite, as they also report spending $50 more than other generations on dining out and takeaway.
Getting around at high costs
The second priority eating up millennial budgets is transportation. Contrary to widespread beliefs, Gen Y does not generally seem to favor public transportation. “They say they spend an average $254 per month on gasoline, versus $211 among other generations,” the survey reads.
This spending pattern is particularly true to older millennials, who are starting families and thus expected to drive their children everywhere, hence needing more gas to get around.
Food and gas are immediately followed by yet another basic: cellphone bills, which take up around $1,932 of Gen Y’s annual spending. Millennials are also spending significantly less on leisure activities, such as television and travel, than older generations, which is an equally significant notion that comes as a rather natural consequence of millennial budgets being caught up in a storm of basics that leaves little time and money for fun and exploration.