Millennial spending habits were revealed in a new LendEDU study looking at how different generations budget.
The LendEDU study focuses on three different generations: Baby Boomers, Generation X and Millennials. The study includes responses from 1,000 American adults. This study combines the Silent Generation with Baby Boomers and Generaztion Z with Millennials due to low sampling sizes.
Here’s a breakdown of Millennial spending habits from the study.
- Millennials spend 33% of their monthly income of housing payments, which includes rent and mortgages.
- The next largest monthly expense is for living, which takes up 24% of their budget.
- Interestingly, Millennial spending habits have them paying the least on credit card debt out of the generations at just 7%.
- They also spend the least on health insurance at 6%.
- However, Millennials are the generation that spend the most on student loan debt at 3%.
Mike Brown, a research analyst at LendEDU and author of this study, had this to say when asked about the results.
“When it came to how millennials budget their monthly income, I was pleasantly surprised to see this generation’s commitment to not only saving for retirement, but investing in general. On average, 4% of millennial income went towards monthly retirement contributions, compared to 4% for Generation X and just 2% for baby boomers. More over, millennials were contributing the most to investments outside retirement (3%), compared to the 2% that was being committed by the other generations. We often hear that millennials are not wise with their money and not preparing for retirement, but this data clearly refutes that.”
As of this writing, William White did not hold a position in any of the aforementioned securities.
