Money Matters: Millennials' spending habits will hurt their futu

Money Matters: Millennials' spending habits will hurt their future

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Millennials' spending habits are dampening their financial futures.

A millennial, loosely defined as a person reaching young adulthood in the early 21st century.
It's no surprise, younger millennials ages 21-26  are spending more and more money on frivolous vices like Starbucks and alcohol. 
A new study from Bankrate.com finds 29 percent of millennials say they buy coffee at least three times a week. On top of coffee, fast food and going out top the list.

Andrea Romi, an assistant accounting professor at Texas Tech has younger kids of her own that struggle with saving.
"I make them save half of every paycheck they have and half of the other half of their paycheck goes to nothing but fast food and restaurants."

The average millennial goes out to eat or orders takeout three times per week. Overall, 40 percent of Americans do that no more than once a week. 

"I think it's the aspect of it's immediate. Millennials are a little short-focused, they don't have a long attention span. The convenience is all they care about," Romi said.

More than half say they go to a bar at least once a week, compared to nearly three-quarters of Americans who don't go out at all.
Just 16 percent of younger millennials have enough saved to cover six month's worth of expenses in case of an emergency. 
Bankrate.com suggests some easy ways to cut back. For instance, try doing cheaper things with your friends like movie marathons or backyard barbeque.
Another big one, bite the bullet and cook your own food.

"Even when I was younger and even now, I still enjoy having people come over and eat. Cooking food for people but my friends and I tend to BBQ and eat at the house, have a glass of wine, where my kids are more apt to eat out and not have to clean or cook." Romi said.

There's no need to totally cut out the social life, but try moderating your spending, and maximize your experiences. Budget, and use self-control. 
 

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