Millennials are spending their money differently than older generations, according to a new report from Bankrate.com, New York.
Millennials (ages 18-36), on average, report spending significantly more than their elders in four of the six categories examined in the survey.
Millennial spending on necessities like groceries and gas surpasses that of older adults. The youngest adult generation reports spending an average of $797 per month on groceries, compared to $724 for those 37 and older. And, on average, Millennials spend $254 per month on gasoline vs the $211 per month spent by those older than them.
Millennials are also spending generously on extras like restaurant orders and cell phone bills. They indicate average monthly spending of $233 on both dine-in and take-out meals, against $182 for older generations. They also top their elders’ monthly cell phone charges $161 to $135.
In all, Millennials spend an additional 15%, or in excess of $2,300 per year, on these four costs than older generations.
Two areas that Millennials are cutting back spending on however include television and travel. Average Millennial spending in both of these areas is significantly lower than those who are older. Millennials report spending an average of $1,943 per year on trips or vacations, while older Americans are shelling out $2,665. For television services like cable, satellite and steaming/subscription, Millennials are spending just $80 per month, compared to $114 for those 37 and up.
“Given their busy lifestyles, and in many cases, growing families, Millennials’ spending habits differ quite significantly from their elders,” says Robin Saks Frankel, credit card analyst. “Responsible budgeters should pay close attention to where the majority of their money is going.”
The survey was conducted by Princeton Survey Research Associates International (PSRAI), Princeton, N.J. PSRAI obtained telephone interviews with a nationally representative sample of 1,002 adults living in the continental United States. Interviews were conducted by landline (501) and cell phone (501, including 321 without a landline phone) in English and Spanish July 6-9. Statistical results are weighted to correct known demographic discrepancies. The margin of sampling error for the complete set of weighted data is +/- 3.9 percentage points.