How millennials actually spend their money

Millennials have quite the scandalous reputation, known as the narcissistic, immature, industry-killing generation, and blamed for ill-advised spending habits that are bankrupting businesses. But behind all the quirks and avocados lies a starkly different truth to this generation.

Check out the top things people think millennials are wasting their money on, and where research shows their money is actually going, as gathered by Slice.

Stereotype vs reality: How millennials actually spend their money

Millennials have quite the scandalous reputation, known as the narcissistic, immature, industry-killing generation, and blamed for ill-advised spending habits that are bankrupting businesses. But behind all the quirks and avocados lies a starkly different truth to this generation.

Check out the top things people think millennials are wasting their money on, and where research shows their money is actually going, as gathered by Slice.

Stereotype: Avocado toast

A few journalists have spread the idea that the reason millennials can’t afford to buy a house is because they're spending their money on avocado toast.

Reality: Housing

Many millennials can’t afford to put a down-payment on a house for various other reasons, like the poor state of the economy, but they still must live somewhere, and they're largely renting.

Stereotype: Amazon Prime

The rise of convenience coincided with the rise of millennials, so it's understandable why one might relate the two.

Reality: Goods from small businesses

Instead, millennial spending appears to lean towards supporting small businesses. They're reportedly more willing to buy local, to do research on products, and to invest in things with human stories.

Stereotype: Booze and cigarettes

Though craft brews are extremely popular among this generation, millennials aren't as interested in booze and cigarettes as previous generations.

Stereotype: Electronics

This is another easy stereotype to believe, what with companies like Apple constantly putting out new products.

Stereotype: Uber

Many people think millennials killed car ownership with the rise of ridesharing apps.

Stereotype: Expensive meals out

Millennials are more likely to spend money eating out than Gen X or Baby Boomers, but they're not eating at fancy Michelin-starred restaurants.

Reality: Workday lunches

Historically, the amount of money people spend on food decreases as they get older, so millennials are actually spending a very normal amount on dining out.

Stereotype: Entertainment

Millennials spend on average about US$1000 less annually on "entertainment," which includes things like pets, hobbies, tickets, and admission fees, compared to boomers.

Stereotype: Fast fashion

The rise of fast fashion brands has been tied to millennials' increase in spending on clothing, but there's a different way they're spending that money.

Stereotype: Millennials are bad with money

Australian property developer Tim Gurner famously called out millennials for fiscal irresponsibility, saying if they didn't spend so much on expensive coffee they could put a down-payment on a house. 

They're not spend-crazy

Despite the common criticism that millennials don’t save, research claims the opposite, but they have different goals than previous generations.

Influencing the markets

Spending across fashion and food is on the rise, and since millennials are demanding better quality and sustainability, companies are changing. Those that don’t keep up are dying.  

Places they’re willing to splurge

Smartphones have become an essential tool of life in many parts of the world, and they’re not cheap, but millennials aren't afraid to spend a little more for the best.

Streaming services have taken over the entertainment industries like film, TV, and music, which have become essential to the millennial who desires to stay plugged in to pop culture.