This Is Why Millennials Spend Less Than Older Generations
Older generations often accuse younger ones of not appreciating the value of a dollar, but according to a new report from TD Bank, millennials spend less on average than both baby boomers and Gen X’ers.
After polling 1500 millennials about their spending habits, the bank found that while people ages 18–34 spend more time shopping than their older counterparts, they actually spend 25% less. Where baby boomers and Gen X’ers spend about $32,000 annually, millennials spend around $26,000 each year.
The reason for this disparity is the millennial mind-set: “[Young people] are more cost conscious,” according to Douglas Boneparth, a financial planner based in New York. “They’re more astute to value.”
So what exactly do millennials spend their hard-earned cash on? The report found that rather than treat themselves to elaborate dinners and boozy nights at clandestine cocktail bars, millennials prefer the comforts of fast food and coffee.
“The only category where millennials spent more than Gen X and Boomers is on coffee and fast food—demonstrating a need for food on the run and frequent doses of caffeine,” reads a press release from TD Bank.
Young people buy coffee an average 11 times a month and spend about $80 during that time for their precious caffeine fixes. So when a cup of joe is one of their most frequent expenses, it’s no wonder they end up spending less than older generations.
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