While data has already shown that millennials aren’t buying homes, cars or saving for retirement like their parents’ generation did, the big question for many is still: what are they spending their money on?
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According to a new survey by LendEDU that analyzed monthly expenses of 1,000 adults ages 22 to 37, top monthly expenses still include the basics such as groceries, restaurants, clothes, alcohol and coffee.
But according to Mike Brown, the research analyst at LendEDU who conducted the study, the most surprising part was, despite reports of millennials avoiding saving for retirement, many actually are.
According to the data, the average millennial tries to save around $480 per month for retirement through their 401(k), savings account or another method.
“I was pleasantly surprised to see so many millennials were prioritizing retirement saving over other, more gratifying expenses,” Brown told FOX Business.
However, he said while $480 per month for retirement doesn’t seem like a whole lot, it is important to remember that this is an average and “is likely brought down by younger millennials just out of college,” so many could be saving even more.
But, there is a big group of outliers. LendEDU says 37% of millennials indicated that they were not saving for retirement at all, and 27% of them were spending more on coffee each month than saving for the future.
“Besides that, the vast majority of millennials are saving more on retirement on a month-to-month basis than other costs like new clothes or concert tickets,” Brown said.
Here’s a full breakdown of the monthly expenses millennials say they’re paying for.
The average millennial spends $38 per month on coffee, while 27% say they do not spend money on it.
The average millennial spends $75 per month on alcohol, while 32% say they do not spend money on booze at all.
The average millennial spends $39 per month on marijuana, while 75% say they do not buy it.
The average millennial spends $163 per month on restaurants or dining out, while 6% say they eat at home.
The average millennial racks up around $281 per month on groceries, while 3% say they don’t buy any.
Online Streaming Services
The average millennial spends $18 per month.
Tobacco, Vaporizer, or JUUL
The average millennial spends $43 per month, while 63% say they don’t buy any.