From coffee to happy hours, Millennials can't resist dropping the cash.
Millennials have three weaknesses when it comes to saving according to a new study from Bankrate: caffeine, food and alcohol.
The personal finance website found that 54 percent of millennials eat out at least three times a week, 30 percent get coffee at the same rate and 42 percent go out to the bar at least one day a week. While it may be fun in the short term, the spending habit is hurting the generation’s savings in the long run compared to others.
“A recent survey conducted by Bankrate.com measuring Americans’ emergency savings showed that just 16 percent of younger millennials have saved the recommended six months’ worth of expenses,” writer Sarah Berger says. “Money saved from packing lunch and passing on lattes would be a smart investment in building that emergency fund.”
Millennials lead the way when it comes to eating and drinking out among their older peers, and it’s not close either, the study found.
A third of 33 percent of Generation X, 32 percent of baby boomers and 25 percent of the silent generation go out at least three times a week to eat — compared to 54 percent of millennials.
As for drinking, 24 percent of Gen X, 19 percent of baby boomers and 11 percent of the silent generation go out for a drink at least once a week at a bar. But 42 percent of millennials do the same, including 51 percent of 21- to 26-year-olds.
Despite millennials leaking money like a sinking ship, Americans as a whole are not suffering for it and are actually displaying better spending habits instead. Most, 59 percent of them, don’t buy brewed coffee during the week, 40 percent say they don’t eat out more than once a week, and 73 percent don’t buy drinks when they are out.
Millennials come out against that trend, meaning instead of learning from their elders they’ve started bad spending habits on their own.
Don’t eat your savings
Can a generation that has become more conservative with spending except with vices ever stop? There are some ways to save.
Berger says to brew coffee at home, budget out your money for meals monthly and to either buy your alcohol at discount liquor stores or to find activities you can do while sober. She also points out that there are some apps like Mvelope which help users sort money and keep a budget digitally.
“Your vice usually isn’t worth the price, but no need to cut it completely out of your life,” Berger says. “Just be sure to stick to a strict budget when it comes to these expenses, spend in moderation, and maybe leave the YOLOing to Drake.”
Plus, if you cant go without your booze at the bar, here are a few ways to save while doing it. No one said you couldn’t have fun and be financially responsible at the same time.
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Article last modified on August 1, 2017. Published by Debt.com, LLC . Mobile users may also access the AMP Version: Millennials Spend More on Going Out Than Past Generations - AMP.