Take one look at a millennial's social media posts and you'll probably assume that all they care about when it comes to food is eating out at restaurants featuring nothing but avocados and splurging on rosé forties. What's interesting is that the majority of their food budgeting isn't spent on hip, trendy restaurants, it's on groceries. According to a new BankRate survey, millennials spend the majority of their paycheck shopping at the grocery store.
On average, millenials spend a monthly rate of $797 on groceries, which adds up to around $9,568 annually. While the new Nutella restaurant around the corner may be beckoning their cravings, the survey found that the annual budget for restaurants was $2,796. While that's significantly less when it comes to dinning out, when compared to other age groups they spend more on both.
So why is it that millenials are spending more on groceries? There are a variety of factors that could cause a spike in the grocery budget. Family size for one can lead to more spending. Thirty-five year-old millenial Joanna Horowitz of Boca Raton, Florida told BankRate,
"Because I have three kids I always surprise myself every week at how much I spend on groceries. It just never seems like we have enough food. I have to go to the store at least two or three times a week."
Along with family size, shopping habits are a factor to consider. As conscience eating becomes steadily more popular, millennials could possibly be forking out more money for quality. Choosing organic, non-GMO, and sustainable products, as well as shopping at popular grocery chains like Whole Foods, can certainly put a dent in the food budget.
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Food isn't the only thing that millennials spend more on than older generations, they're also pumping more bills right into their gas tank. The survey found that millennials report a monthly spending of $254 on gas, compared to $211 from non-millennials. As older millennials are starting families, transporting kids to school and extracurricular activities means spending more money on gasoline. Looks like the notion of millennials biking to work may not be as popular as the reality.
While spending more may sound like saving less, it could work to their advantage. By opening up a rewards credit card, more spending equals more money back. Taking a look at finances, credit card companies offer various rewards programs that can let millennials put money back into the bank.
As long as they are not spending outside their means, swapping the debit card for a credit card and then paying it all off at the end of the month can help build up rewards and manage debt. That means when you splurge at the grocery store you have the ability to get a free bag of groceries every now and then.