Survey reveals the spending habits of millennials (spoiler: they like coffee and eating out)
New research from LendEDU shows that 27% of Millennials dole out more money paying for coffee monthly than they save for retirement in that same time period. But while 37% of Millennials admitted to putting no money away each month for their Golden Years, the average one who does, saves $480 a month for retirement using a “401(k), savings account, or another method.”
As for how the research was carried out, Pollfish surveyed 1,000 American Millennials (ages 22 to 37) for the company.
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How much Millennials spend monthly, versus saving for retirement
Keeping the monthly retirement savings average of $480 in mind, let’s take a look at how much Millennials’ monthly expenses reportedly compare to that amount:
Coffee: $38/month
27% spend more on this monthly than they save for retirement
27% spend nothing on this item
Alcohol: $75/month
27% spend more on this monthly than they save for retirement
32% spend nothing on this item
Marijuana: $39/month
11% spend more on this monthly than they save for retirement
75% spend nothing on this item
Restaurants: $163/month
49% spend more on these monthly than they save for retirement
6% spend nothing on this
Groceries: $281/month
65% spend more on these monthly than they save for retirement
3% say they spend nothing on this
Online streaming services: $18/month
26% spend more on these monthly than they save for retirement
26% spend nothing on this
Concerts, sports and more: $49/month
15% spend more on these monthly than they save for retirement
54% spend nothing on these activities
Tobacco, vaporizer, or JUUL products: $43/month
17% spend more on these monthly than they save for retirement
63% spend nothing on this
New clothing: $82/month
32% spend more on these monthly than they save for retirement
21% spend nothing on these
Music streaming services: $7/month
12% spend more on these monthly than they save for retirement
61% spend nothing on this
Working out: $23/month
11% spend more on this monthly than they save for retirement
60% spend nothing on this
“Retirement is something I mildly obsess over because I understand my generation might not have access to social security. I prefer to put money in my 401(k) versus setting it aside in a separate retirement savings account because then I don’t have to think about saving versus spending – it takes away the decision and forces me to save,” Bridget Devine, a PR manager in her twenties, told LendEDU. Devine says she puts 14% of the money she earns from working into her 401(k).
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