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Personal Finance Reports

Retirement vs. Coffee, Dining Out, Netflix & Many More: Where Do Millennials Put Their Money?

Updated Apr 05, 2023   |   11-min read

You can skip this part if you’ve heard it before: “Millennials are spending too much money on coffee, avocado toast, and fun and not enough on housing, cars, and retirement.” 

Are millennials unprepared for life’s important financial milestones like retirement? Or are we exceedingly under the microscope, subjects to the 24/7 news cycle? Were past generations more financially-disciplined while between the ages of 22 and 37?

Surveying 1,000 Americans within that above age range, LendEDU sought out to discover monthly millennial spending habits on things like coffee, groceries, and online streaming services; we then stacked those expenditures up against their monthly retirement savings. 

Upon analyzing the data, we came away with the following key findings:

  • ​Amongst millennial respondents that were saving for retirement, the average amount saved per month was $480. Meanwhile, 37% of millennials indicated that they were not saving for retirement
  • With 27% of millennials having no monthly coffee expenditure, those that did were spending $38 per month on the beverage. Further, 27% of millennials were spending more on coffee per month than retirement. 
  • Only 6% of the generational respondents were not spending on dining out each month. Amongst those that were, the average amount spent per month was $163. While, 49% of millennials were spending more on restaurants and dining out than they were saving for retirement per month.  

Full Results From the Survey

1,000 millennial Americans (ages 22-37) revealed how much they save for retirement each month through their 401(k), savings account, or another method. They were then asked to estimate how much they spend per month on common 2018 expenses. We then compared the numbers…

How much do millennials save for retirement each month?

  • According to our survey, the average millennial saves $480 per month for retirement
  • 37 percent of millennial respondents do not save for retirement on a monthly basis

How much do millennials spend on coffee each month?

  • According to our survey, the average millennial spends $38 per month on coffee
  • Based on each millennial’s unique answer, 27 percent of them spend more on coffee each month than they save for retirement
  • 27 percent of millennials do not spend money on coffee each month

How much do millennials spend on alcohol, including at bars and in liquor stores, each month?

  • According to our survey, the average millennial spends $75 per month on alcohol
  • Based on each millennial’s unique answer, 27 percent of them spend more on alcohol each month than they save for retirement
  • 32 percent of millennials do not spend money on alcohol each month

How much do millennials spend on marijuana each month?

  • According to our survey, the average millennial spends $39 per month on marijuana
  • Based on each millennial’s unique answer, 11 percent of them spend more on marijuana each month than they save for retirement
  • 75 percent of millennials do not spend money on marijuana each month

How much do millennials spend on restaurants or dining out each month?

  • According to our survey, the average millennial spends $163 per month on restaurants or dining out
  • Based on each millennial’s unique answer, 49 percent of them spend more on restaurants or dining out each month than they save for retirement
  • 6 percent of millennials do not spend money on restaurants or dining out each month

How much do millennials spend on groceries each month?

  • According to our survey, the average millennial spends $281 per month on groceries
  • Based on each millennial’s unique answer, 65 percent of them spend more on groceries than they save for retirement
  • 3 percent of millennials do not spend money on groceries each month

How much do millennials spend on online streaming services (i.e. Netflix) each month?

  • According to our survey, the average millennial spends $18 per month on online streaming services
  • Based on each millennial’s unique answer, 26 percent of them spend more on online streaming services each month than they save for retirement
  • 26 percent of millennials do not spend money on online streaming services each month

How much do millennials spend on concerts, sporting events, and other events each month?

  • According to our survey, the average millennial spends $49 per month on concerts, sporting events, and other events 
  • Based on each millennial’s unique answer, 15 percent of them spend more on concerts, sporting events, and other events each month than they save for retirement
  • 54 percent of millennials do not spend money on concerts, sporting events, and other events each month

How much do millennials spend on tobacco, vaporizer, or JUUL products each month?

  • According to our survey, the average millennial spends $43 per month on tobacco, vaporizer, or JUUL products
  • Based on each millennial’s unique answer, 17 percent of them spend more on tobacco, vaporizer, or JUUL products each month than they save for retirement
  • 63 percent of millennials do not spend money on tobacco, vaporizer, or JUUL products each month

How much do millennials spend on new clothes each month?

  • According to our survey, the average millennial spends $82 per month on new clothes
  • Based on each millennial’s unique answer, 32 percent of them spend more on new clothes each month than they save for retirement
  • 21 percent of millennials do not spend money on new clothes each month

How much do millennials spend on music streaming services (i.e. Spotify) each month?

  • According to our survey, the average millennial spends $7 per month on music streaming services 
  • Based on each millennial’s unique answer, 12 percent of them spend more on music streaming services each month than they save for retirement
  • 61 percent of millennials do not spend money on music streaming services each month

How much do millennials spend on gym or exercise expenses each month?

  • According to our survey, the average millennial spends $23 per month on gym or exercise expenses
  • Based on each millennial’s unique answer, 11 percent of them spend more on gym or exercise expenses each month than they save for retirement
  • 60 percent of millennials do not spend money on gym or exercise expenses each month

Visual Representations of the Data

Monthly Retirement Savings vs. Other Monthly Expenses

Percentage of Millennials That Spend More Per Month on Each Expense Than Retirement

The Retirement Sky Isn’t Crashing Just Yet on Millennials

Albeit a small sample size of just 1,000 millennials, the results of this survey do not paint as bleak of a picture as some may suggest regarding millennial retirement saving habits. With an average monthly retirement saving of $480 per month, there is certainly room for the generation to improve, but that is certainly not a bad start.

One thing to remember is that average is drawn from a very wide age range, 22 to 37. For millennials on the younger side, $480 per month for retirement is a great start when compounding interest is taken into account. Also, one must consider that the younger millennials are most likely making entry-level or slightly lower salaries. If one were to analyze the data for solely millennials ages 30 or higher, it is probable that they are saving closer to $1,000 per month in retirement.

Bridget Devine, a 25-year old public relations manager, contributes a whopping 14 percent of her salary to her 401(k). “Retirement is something I mildly obsess over because I understand my generation might not have access to social security. I prefer to put money in my 401(k) versus setting it aside in a separate retirement savings account because then I don’t have to think about saving versus spending – it takes away the decision and forces me to save,” said Devine.

Devine continued on to say that it would be possible ​for her to save even more for retirement if she cut back in certain areas. “It would be difficult to save much more than I currently am, but I do think with my generation, experiential dining and wine have become incredibly popular and expensive trends, so those are areas where I know I should cut back.”

Devine’s comments lead perfectly into another aspect of this study: Millennials spending their money elsewhere instead of saving it for retirement. In not one instance were millennials spending more per month on any of the common expenses listed when compared to how much was being saved per month for retirement, on average.

Further, only once were more than half of millennial respondents, 65 percent to be exact, spending more on one of the common expenses than they were putting towards retirement. And that expense, groceries, is a necessary expense and the cheapest way to fund three meals a day.

Daren Blonski, 37-year old millennial CFP and founder of Enso Wealth Management, explained the idea behind finding a balance between saving and spending. “There is a balance between saving and creating experience as we live. Many millennial’s have watched their grandparents and parents work and save only to retire and not have their health intact to enjoy retirement. Thus our generation is placing more value on experience now, and less on waiting until we retire.”

“Personally, I see social expenses as investing in experience. Life is about creating experience and enjoying the journey, not working to maybe one day be able to enjoy it,” Blonski went on to say. 


Retirement Saving Tips

Saving for retirement is crucial and every dollar can really make a huge difference, especially when you consider just how much money you can save for retirement by investing.

Below are a few tips that may help you save a little bit more for retirement.

Take Care of Your Student Loan Debt

For many young adults that want to start saving for retirement, student loan debt can serve as a formidable obstacle. You should try to pay off your student loans as fast as possible by exploring a few different strategies.

Furthermore, refinancing your student loans could potentially save you money on interest that can then be invested for retirement.

Refinance Other Debt

Your student loans aren’t the only debt that you can refinance to possibly save some more money. If you are a homeowner, you can look into refinancing your mortgage or refinancing your home equity line of credit. Check out LendEDU’s mortgage refinance calculator to see how much money you might be able to save by refinancing your home loan.

Additionally, you do have the option to refinance a personal loan if the situation calls for it.

Other Strategies to Consider

In addition to the above, there are personal finance tips that may be able to help you save more money for retirement. For example, you could rent a cheaper apartment, bundle your insurance, cut your cable, or sign up for budgeting software.

This list LendEDU put together offers some good tips on how to budget and save money.

Methodology

All of the data found within this report derives from an online poll commissioned by LendEDU and conducted online by online polling company Pollfish. In total, 1,000 millennial Americans between the ages of 22-37, the millennial age range, were surveyed for this particular poll. The desired respondents were found using Pollfish’s age filtering feature. If respondents met the criteria, they were then selected randomly from Pollfish’s online user panel of over 100 million. This survey was conducted over a two-day span, starting on July 12, 2018 and ending on July 13, 2018. Respondents were given the ability to enter “0” into a specific question if the expenditure was not something that exists in their monthly budgets. To find if respondents were spending more on one of the common expenses than they were saving for retirement, their unique results were lined up and the appropriate calculations were run from there. Respondents were asked to answer all questions truthfully and to the best of their ability. 

See more of LendEDU’s Research