Here's What To Know About Millennials And Their Buying Habits

By Francine Fluetsch on August 13, 2016

When renting to anyone, maybe college students in particular, you can’t help but worry slightly about how the person is going to pay their rent, and if they will be able to pay it every month.

image via mamiverse.com

This, of course, is why you have the renter fill out their occupation as well as their credit score — and have them put down a co-signer just to be on the safe side — but what exactly do millennials spend their money on, and are they good at saving?

This article might help give you some insight on what this new generation’s buying habits are, so you can put your mind at ease when it comes to getting the rent every month.

Food:

Oh man, when that paycheck rolls in, the first and foremost thing that most millennials do, is go out for a nice meal. Going out to eat with friends or on a date is how they hang out, how they relax, and how they satisfy their cravings while their bank account still lets them.

Food is the number one money eater for millennials, because going out to eat is fun, but it’s also pricy. Even when they try to only go out on days where there are deals, like Taco Tuesday, they still will spend much more than they would like simply on food.

And that’s just talking about fun meals! They also have to spend a good chunk of change on groceries. Of course, this is where some millennials will try and pinch two pennies together, opting for the ramen or cheaper food items than splurging too much at the store. This also varies on age of the college student, experience in the kitchen, and how much free time they have in their day to spend cooking.

School necessities:

Have you seen the prices of textbooks these days? It’s insane! Sometimes, one book can be over $200, and there isn’t always a way around paying full price. Students are, however, very good at using the internet to their advantage, so if they can find a cheaper version of their book on Amazon or buy it from another student who is selling it, they’ll do it in a heartbeat. Even the teachers hate how overpriced the books are, so some will even put everything in a PDF online to help the students save money.

They want to give as little extra money to the school as possible, so things like this really show how students excel at saving money when it can be saved.

Of course, there are times when the book they need is a customized edition, meaning that they can’t buy it online or from another student since it will be the wrong version, so they have to take the plunge and buy the book.

Students can space this out, and many of them wait the first week of school out to see if they even really need the book to make sure that if they drop the change on it, it will at least be worth it.

Clothes:

Millennials are all about what they are wearing, and so clothes are another big spending item. It really adds up, and not because of what you might think.

Students are great at scoring cheap items in local thrift stores, buying clothes from one another, and even just scavenging the sale racks in stores to get the best price, but things still add up. Shopping and styling is a way for students to express themselves, and with the changing of seasons and what’s “in,” they constantly have to be buying new things.

Since new clothes all the time aren’t absolutely necessary, students are good at resisting if they know they need to keep some money to meet the rent or to buy food instead. Many know when enough is enough, and usually have a limit that they let their bank account get to so they will always have a little extra cushion to fall back onto.

Transportation:

Millennials have to drop a lot of money on how they get to school and work, and it adds up faster than one might think. Many students have to commute to school since they tend to live in areas with cheaper rent, but this means more gas, more miles on their car, or a longer commute to the bus station.

With a car, the students have to pay about $500 a quarter to own a measly parking pass, have to pay for parking all over the city, and have to keep any spare change so they can gas up before they have to head to class.

Cars definitely guzzle a lot of money, so millennials will also opt for bikes and bus routes, but bikes still require upkeep and buses have fares and annoying time schedules.

So what is there to take from this?

These are general things that millennials tend to drop a lot of their paychecks on, but that doesn’t mean that they aren’t responsible. They are learning the value of money and hard work, and know that if they don’t pay their rent, they will get kicked out and get a bad review from you, which will hinder them getting another place.

While they still might be in the phase of splurging more than saving, they are also learning how to budget all of their expenses, and you can bet that rent is usually at the top of the list.

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