Money Millennial Financial Habits: Spending and Saving
Things like the cost of living, saving money, and paying off debt can affect people differently depending on their age. With Millennials now in their thirties and forties, what are their attitudes towards money and how do they compare to people in other generations?
A survey conducted on behalf of Self surveyed 1,276 people to understand millennial financial habits, including what they spend their money on, how much they save, and whether they feel financially secure.
Key statistics
- Millennials spend an average of $1,436 per month on household bills and expenses.
- 22.2% of millennials do not feel financially stable, and 21% said they worry about paying household expenses like rent and bills every day.
- Over two-thirds (67.4%) of millennials say they feel financially prepared for retirement, which is higher than the percentage of people across all age groups (57.6%).
- Healthcare and medical bills are the biggest financial concern among millennials with 55.9% citing this as one of their biggest money-related worries.
- Three-quarters (75.7%) of millennials always make a budget for their monthly expenses, and 87.1% set money aside for emergencies.
- A quarter (23.1%) of millennials think their 20-year-old selves would be disappointed with their current financial situation.
Who are millennials?
Millennial is the name given to people who were born between 1981 and 1996. According to 2023 data from Statista, millennials are the largest generation group in the U.S. with an estimated population of 72.7 million. That means millennials account for an estimated 21.5% of the total U.S. population. [1] Statista, “U.S. Population by Generation” https://www.statista.com/statistics/797321/us-population-by-generation/
How much do millennials earn?
The latest data (as of December 2023) from Scholaroo shows that those aged 25-44 had a median annual household income of $83,152. Scholaroo’s data is based on information collected from official public data on median household income by age in the U.S. [2] Scholaroo, “Median Income by Generation” https://scholaroo.com/report/median-income-by-generation/
According to the survey on behalf of Self, the majority (85.6%) of millennials are employed full-time, while 3.7% are employed part-time and 3.9% are unemployed. 5.8% said they work a freelance job, and 1% said they are in school or college.
For most millennials surveyed (78.5%), their highest level of education is a bachelor’s degree.
Millennial net worth
A study by Empower, looking at data from their 401(k) customers, found that Millennials’ net worth increased by 12.7% in 2024, reaching an average of $333,096 (compared to $295,456 in December 2023). [3] Empower, “Millennials’ wealth grew 13% in 2024” https://www.empower.com/the-currency/money/millennials-wealth-news
Millennial living situations
According to the latest data from the U.S. Census Bureau via Apartment List, 45.5% of millennials are homeowners as of 2023. Baby boomers have the highest homeownership rate with 74% of people in this age range owning a home. [4] Apartment List, “2024 Millennial Homeownership Report” https://www.apartmentlist.com/research/millennial-homeownership-2024/p>
| Generation | % who are homeowners |
|---|---|
| Gen Z | 8% |
| Millennials | 45% |
| Gen X | 65% |
| Baby Boomers | 74% |
| Silent Generation | 70% |
Source [4] Apartment List, “2024 Millennial Homeownership Report” https://www.apartmentlist.com/research/millennial-homeownership-2024
The latest data available from RentCafe shows that 17.2 million millennials were renting in 2022, making them the dominant renter generation. [5] Rent Cafe, “Millennials Make Historic Switch From Renter to Owner Majority” https://www.rentcafe.com/blog/rental-market/market-snapshots/millennials-switch-renter-to-owner-majority/
What do millennials spend money on?
The latest data from the BLS shows that the average U.S. household spends $77,280 per year (or $6,440) per month as of 2023, with housing making up 32.9%, transport making up 17%, and food accounting for 12.9% of household expenditures. [6] BLS, “Consumer Expenditures - 2023” https://www.bls.gov/news.release/cesan.nr0.htm
When asked what they spend the most money on per month, 55.1% said household bills and expenses were in their top spending categories, followed by food delivery and eating out (45.5%), and clothes and accessories (42.5%). Paying off debt came bottom of the list, although 14.1% of millennials said this was one of the things they spent the most money on each month.
| Top expenses | % of millennials |
|---|---|
| Household bills and expenses | 55.1% |
| Food delivery/eating out | 45.5% |
| Clothes and accessories | 42.5% |
| Going out/entertainment | 42.5% |
| Travel | 26.4% |
| Personal care | 16.4% |
| Paying off debt | 14.1% |
Data note: Respondents could select more than one answer.
Millennials spend $1,436 per month on household bills and expenses
Among millennials, the average amount spent on household bills and expenses per month is $1,436. The most common spending range on household expenses was $1,000 - $1,500 with almost a quarter (23.9%) saying they spend this amount.
| Amount spent on household bills and expenses | % of millennials |
|---|---|
| $0 | 1.8% |
| $1-$500 | 15.4% |
| $501-$1,000 | 17.3% |
| $1,001-$1,500 | 23.9% |
| $1,501-$2,000 | 21.6% |
| $2,001-$2,500 | 11.3% |
| $2,501-$3,000 | 4.4% |
| Over $3,000 | 4.3% |
Millennials spend $128 per month on entertainment
On average, millennials say they spend $128 per month on entertainment including TV, streaming services, music, and gaming. The most common spending range for entertainment was $21-$50, with 22.1% of millennials saying they spend this much, however, 18.3% say they spend over $150 per month on these things.
| Amount spent on entertainment (TV, streaming, music, gaming) | % of millennials |
|---|---|
| $0 | 5.0% |
| $1 - $20 | 12.3% |
| $21 - $50 | 22.1% |
| $51 - $80 | 12.3% |
| $81 - $110 | 12.9% |
| $111 - $150 | 13.0% |
| $151 - $200 | 8.4% |
| $201 - $300 | 6.2% |
| $301 - $500 | 4.0% |
| $501 - $700 | 2.4% |
| $701 - $1,000 | 0.4% |
| $1,000+ | 0.9% |
Millennials spend $127 per month on socializing
The average amount millennials said they spent on socializing including eating out and going to bars or clubs is $127, with the most common monthly spend being $21-$50 (16.6% of respondents).
| Amount spent on socializing (eating out, going to bars and clubs) | % of millennials |
|---|---|
| $0 | 8.4% |
| $1 - $20 | 10.1% |
| $21 - $50 | 16.6% |
| $51 - $80 | 14.5% |
| $81 - $110 | 15.1% |
| $111 - $150 | 10.4% |
| $151 - $200 | 8.9% |
| $201 - $300 | 7.0% |
| $301 - $500 | 5.6% |
| $501 - $700 | 2.5% |
| $701 - $1,000 | 0.4% |
| $1,000+ | 0.4% |
Millennials spend $160 per month on shopping
When it comes to shopping for items like clothes, cosmetics, and gadgets, the millennials surveyed spend an average of $160 per month on these items. The most common amount millennials spend on shopping for these items is $111-$150 per month.
Almost half (46.4%) of millennials say their preferred way of shopping is online, and just over a quarter (26.5%) say they often buy products they have seen on social media.
| Amount spent on shopping (clothes, cosmetics and gadgets etc.) | % of millennials |
|---|---|
| $0 | 6.8% |
| $1 - $20 | 9.8% |
| $21 - $50 | 15.9% |
| $51 - $80 | 12.1% |
| $81 - $110 | 12.4% |
| $111 - $150 | 13.6% |
| $151 - $200 | 9.6% |
| $201 - $300 | 8.1% |
| $301 - $500 | 4.9% |
| $501 - $700 | 4.3% |
| $701 - $1,000 | 1.2% |
| $1,000+ | 1.2% |
Millennials and financial stability
The impact of things like inflation and rising prices can impact people’s mental health. A 2024 Bankrate survey found that 47% of U.S. adults say money causes them stress and negatively impacts their mental health, with 65% citing rising prices as the main culprit. The study also found that money affected mental health more than work, physical health, or current events. [7] Bankrate, “Money and Mental Health Survey” https://www.bankrate.com/loans/personal-loans/money-and-mental-health-survey/
Respondents to the survey on behalf of Self Financial were asked whether they feel financially stable. 22.2% of millennials surveyed said they don’t, and 21% said they worry about household expenses like rent and bills every day.
Healthcare and medical bills are the biggest financial worry for millennials (55.9%)
The biggest financial concern among millennials is healthcare and medical bills according to the survey on behalf of Self Financial, with 55.9% citing this as one of their biggest money-related worries, followed by paying off debt (46.2%).
Healthcare and medical bills are the biggest financial concern across all age groups with 52% of respondents saying this was one of their top worries.
| Financial concerns | % of millennials |
|---|---|
| Healthcare and medical bills | 55.9% |
| Paying off debt | 46.2% |
| Household bills | 45.0% |
| Saving money | 39.7% |
| I don't worry about money | 6.1% |
Data note: Respondents could select more than one answer.
While 22.2% of millennials in this survey said they don’t feel financially stable, this is lower than the average across all generations (30.3%).
Everyday expenses
When it comes to everyday household expenses like rent, mortgages, and household bills, just over a third (34.5%) of millennials said they worry about these things once a week and 28.1% worry about them once a month. Only 4.6% said they never worry about paying for these everyday expenses.
Data from a 2024 report by NAR shows that millennials made up the largest share (38%) of home buyers, with 75% of younger millennials (1990-1998) and 44% of older millennials (1980-1989) being first-time buyers that year. [8] NAR, “2024 Home Buyers and Sellers Generational Trends” https://www.nar.realtor/sites/default/files/documents/2024-home-buyers-and-sellers-generational-trends-04-03-2024.pdf
However, 12.3% of millennials surveyed said they don’t think they’ll ever have enough money to buy a house.
Savings and investments
Of those surveyed, 77.8% of millennials said they have money invested in things like stocks, bonds and funds, but these can be a source of financial worry for some.
38.2% of millennials say they worry about their savings and investments once a week, but one in five (20.7%) say they worry about these things every day. However, the majority (72.3%) say they are happy with the amount of money they are saving.
Over two-thirds (67.4%) of millennials surveyed said they feel financially prepared for retirement, which is higher than the percentage across all age groups (57.6%). Data from Fidelity as of Q4 2024 shows that millennials have an average 401(k) balance of $67,300 and an average IRA balance of $25,109. [9] Fidelity, “Average Retirement Savings” https://www.fidelity.com/learning-center/personal-finance/average-retirement-savings
70.4% of millennials think their past selves would be satisfied with their current financial situation
Survey respondents were asked how they thought their 20-year-old selves would feel about the current financial situation. The majority (70.4%) thought their younger selves would be satisfied with how their finances were going, but around a quarter (23.1%) thought their younger selves would be disappointed.
Only 6.5% of millennials thought their younger selves would be pleasantly surprised with their current financial situation.
| How millennials think their 20-year-old selves would feel about their current financial situation | % of millennials |
|---|---|
| Satisfied | 70.4% |
| Disappointed | 23.1% |
| Pleasantly surprised | 6.5% |
How millennials budget and plan for the future
79.3% of millennials say they do some kind of financial planning for their future, which is slightly higher than the average across all age groups (72.6%).
Three-quarters (75.7%) of millennials say they always make a budget for their monthly expenses and 87.1% set money aside for emergencies. 69% of millennials also say they budget for planned events like family birthdays and holidays like Christmas.
| Financial planning and budgeting | % of millennials |
|---|---|
| Yes | 75.7% |
| Sometimes | 14.1% |
| No | 10.2% |
While the Self survey did not focus on individuals who live paycheck to paycheck, data from a Forbes Advisor survey of people living paycheck to paycheck found that 57% of millennials say a lack of budgeting and financial planning is the main reason that they live paycheck to paycheck. This is followed by high monthly bills with 50% citing this as a reason. [10] Forbes, “Living Paycheck to Paycheck Statistics 2024” https://www.forbes.com/advisor/banking/living-paycheck-to-paycheck-statistics-2024/
Millennials’ financial and life ambitions
When asked about their ambitions for life and finances, 52.1% of millennials said they would like to start their own business one day, 42.4% said they want to get married (though 29.3% said they are already married), and 38.8% said they would like to buy a house.
| Financial or life ambitions | % of millennials |
|---|---|
| Starting my own business | 52.1% |
| Getting married | 42.4% |
| Buying a house | 38.8% |
| Having children | 36.7% |
| Paying off debt | 28.4% |
| Retiring early | 16.0% |
Data note: Respondents could select more than one answer.
Methodology
A survey of 1,276 people was conducted on behalf of Self in March 2025, including questions about how millennials spend and save money, and how this compares to people in other generational groups. 75% of the respondents to the survey were in the millennial age range (born between 1981 and 1996).
The breakdown of respondents' age groups was as follows:
- Millennials - 76.7%
- Baby boomers - 3.6%
- Gen X - 13.2%
- Gen Z - 6.4%
Sources
- [1] Statista, “U.S. Population by Generation” https://www.statista.com/statistics/797321/us-population-by-generation/
- [2] Scholaroo, “Median Income by Generation” https://scholaroo.com/report/median-income-by-generation/
- [3] Empower, “Millennials’ wealth grew 13% in 2024” https://www.empower.com/the-currency/money/millennials-wealth-news
- [4] Apartment List, “2024 Millennial Homeownership Report” https://www.apartmentlist.com/research/millennial-homeownership-2024
- [5] Rent Cafe, “Millennials Make Historic Switch From Renter to Owner Majority” https://www.rentcafe.com/blog/rental-market/market-snapshots/millennials-switch-renter-to-owner-majority/
- [6] BLS, “Consumer Expenditures - 2023” https://www.bls.gov/news.release/cesan.nr0.htm
- [7] Bankrate, “Money and Mental Health Survey” https://www.bankrate.com/loans/personal-loans/money-and-mental-health-survey/
- [8] NAR, “2024 Home Buyers and Sellers Generational Trends” https://www.nar.realtor/sites/default/files/documents/2024-home-buyers-and-sellers-generational-trends-04-03-2024.pdf
- [9] Fidelity, “Average Retirement Savings” https://www.fidelity.com/learning-center/personal-finance/average-retirement-savings
- [10] Forbes, “Living Paycheck to Paycheck Statistics 2024” https://www.forbes.com/advisor/banking/living-paycheck-to-paycheck-statistics-2024/
