Millennials are spending their money on 3 major categories

Millennials Are Spending More Money Dining Out Than On Groceries
Millennials Are Spending More Money Dining Out Than On Groceries

Forget about clothes and shoes.

We've known that consumers prefer to spend money on technology as opposed to apparel, but Jim Cramer (via Carl Quintanilla) has stated the three places where they're actually choosing to spend their hard-earned cash.

It's in three places.

1. Uber

Jason Dorsey, millennial expert of the Center for Generational Kinetics, told Business Insider in a note in January that millennials (and teens) prefer to spend money on experiences and technology.

Uber sits in the sweet spot between both of those categories.

More importantly, Uber highlights the millennial generation's general distaste for owning anything.

"Battered by student loan debt and the Great Recession, Millennials place less emphasis on owning and more on sharing, bartering and trading to access coveted goods," Jilian Mincer of Reuters reported last year."These behaviors have propelled businesses such as car rental service Zipcar, taxi service Uber and home rental site Airbnb."

2. Cell phones

Having a cell phone is a must for young people. In fact, a recent Harris Poll survey noted that quite simply, young people can't function without their phones.

Phones often serve as chief modes of communication, and it's not a secret that millennials love chronicling their lives on social media – almost as much as Generation Z.

3. Make up

Young women love make up. When Goldman Sachs and Teen Vogue polled fashion forward women ages 13-29 to find out their favorite brands, MAC Cosmetics came out on top. Other cosmetic companies in the top ten included Sephora, Urban Decay, and Make Up For Ever, proving that young women have a strong affinity for cosmetic companies.

View millennials' 24 favorite retail brands of 2016:

NOW WATCH: One of the most popular games millennials grew up with is hoping to make a comeback

More from Business Insider:
I've tried nearly every hot dog on the market — here's who does it best
Chick-fil-A is making big changes to take on Shake Shack and Chipotle
The pizza chain backed by LeBron James just tripled sales

SEE ALSO: The top 50 brands that cool teenage girls love