04 Jun Infographic: How do Millennials spend their money?
It’s easy to forget that millennials aren’t teenagers anymore – with the majority already in established careers. The oldest millennials are now 37 and many of them are parents with mortgages.
There’s a lot of negative sentiment around Millennials being ill-equipped to handle their finances, however, according to our study, research tells us a different story; although Millennials do spend the most in key life areas, they are also the strongest savers.
Here’s a snapshot of how this naturally innovative, tech-savvy, and perhaps misunderstood group spend their bucks:
Housing: Along with Gen X, Millennials spend 38% of their total monthly budget on housing (which includes mortgage, rent and utilities). It is no surprise that the older generations have lower housing costs, with Baby Boomers and the Silent Generation spending 27% and 22% respectively on housing.
Clothing: While the younger Gen Z spends the highest proportion of their monthly budget on clothing (8%), all the other generations spent just 3% on average on this category.
Debt: Millennials spend 8% of their monthly spend paying back debt – this is a higher proportion of spend than all the other generations. Gen Z (3%), Baby Boomers (7%), and the Silent Generation (6%).
Savings: Millennials save a whopping $337 per month on average, much higher than the generational average of $261. Despite the rhetoric about young people and money, the younger generations saved the highest proportions of their total monthly funds. Gen Z and Millennials saved 16% and 10% respectively, compared to the Baby Boomers (8%), Gen X and the Silent Generation (both saving 7%).