It’s no secret that millennials aren’t following in the footsteps of their parents when it comes to homeownership, as the U.S. real estate market continues to shrink. One of the reasons is that members of the younger generation simply have too many expenses to afford investing in their future. So what exactly are millennials spending their money on? Finance site Go Banking Rates wanted to find out.
By looking at 28 common expenses millennials face on a monthly basis, Go Banking Rates determined just how much they spend in various categories—necessities and extra-curriculars included—and found out how long a millennial would have to work to meet those expenses based on an average weekly salary of $619.50.
Unsurprisingly, monthly rent was by far the biggest expense, coming in at $1059.51 a month for a one-bedroom apartment. According to the site, the average millennial needs to work 68 hours to pay that off. Groceries are another major expense, especially if you have a taste for Whole Foods. According to Go Banking Rates, the average millennial spends $334.09 a month on groceries, which equals 21 hours of work.
Other common expenses for millennials include the all-important monthly health insurance premium, which can cost up to $314 for a middle-of-the-road plan. Monthly utilities cost an average of $146.38 a month, while the internet (which no millennial can live without) costs an average of $50.92.
And those are just the necessities. Millennials spend a large portion of their income on pleasure, too. For example, the average dinner at a restaurant—and millennials love their restaurants—costs $39.40. Concert tickets meanwhile, set the average concertgoer back $111.90, which requires a full day of work to afford.
The prospect of saving money to lay the foundation for a strong financial future may feel daunting, especially looking at the numbers above. We recommend putting aside 10% of each paycheck into an untouchable account, and letting that accumulate over time. Also, as long as Netflix stays at $9.99 a month, everything is going to be okay, we promise.
Learn how to invest your money with a copy of Millennial Money: How Young Investors Can Build a Fortune, and tell us what you wish would be just a little bit cheaper.