There’s plenty of speculation out there about why Millennials aren’t buying homes, investing in the stock market or even buying diamonds.
But a new report found that Millennials spend significantly more on necessities like groceries and gas than older generations.
On average, people between the ages of 18 and 36 spend $2,300 more per year on groceries, gas, restaurants, and cellphone bills than those who are 37 and older, according to a study from Bankrate.com.
On the other hand, Millennials spend $1,130 less on travel and television than their elders.
Although Millennials have far less spending power than other age groups, this data makes sense considering the lifestyle choices of the nation’s largest generation.
“Millennials aren’t all about going out to brunch every Sunday and jetting off to all these places,” said Bankrate.com credit card analyst Robin Saks Frankel.
“It’s mostly Millennials, particularly the older ones, who tend to be settling down and having families,” she continued.
Older Millennials with young children typically do more driving and spend more at the grocery store, according to Frankel, while younger Millennials usually have less financial obligations and are thus able to spend more.
“Millennials have this more active lifestyle. They’re at home less, they’re always on the go,” said David Weliver, founding editor of Money Under 30, a personal finance website for young adults.
“I’ve always noticed the spending on going-out related expenses. Gas would certainly fit into that, as well as spending on dining and going out to bars,” he said.