6 ‘Necessities’ Millennials Are Spending Money on That Could Harm Their Finances
Written by
Crystal Mayer
Edited by
Zuri Anderson
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Millennials have long been known for their willingness to spend money on less traditional things compared to their older counterparts. The generation has re-envisioned what a necessity is and whether they will go into debt to afford it.
A new study conducted by The Harris Poll on behalf of Intuit Credit Karma indicates that 84% of millennials considered some nonessential items and services to be necessary, and are willing to spend money on them regardless of their financial situation. Nearly half of millennials (46%) say they’re willing to take on credit card debt to continue spending on those nonessentials.
Nearly 60% also said they viewed spending money on hobbies and interests as a necessity and not a luxury. Unfortunately, some of this spending on these newly-classified necessities may cause problems down the road.
Here are six “necessities” millennials are spending money on that could harm their finances.
Streaming Services
When surveyed, 37% of millennials said that they considered streaming services, such as Netflix and Hulu, a necessity. Streaming services have grown exponentially over the past decade. Their growing popularity, however, has come with an increase in price.
Recently, Forbes noted that 44% of consumers saw an increase in the cost of streaming services, and almost half (49%) carried at least three different subscriptions at once. With these services costing $10 or more each per month, the financial burden can add up quickly.
Grocery Delivery
Another nonessential that millennials are willing to pay a premium for is grocery delivery. According to the Credit Karma survey, 28% of millennials find grocery delivery services like Instacart and Amazon a necessity. Consumers should beware that the convenience of delivery comes with a price. In addition to delivery fees and monthly membership costs, many grocery delivery providers also markup the actual items.
Skincare and Beauty
Millennials also said that skincare and beauty are a priority, with 26% responding that they consider the products a necessity. Social media has been a significant authority in determining which nonessential items millennials are willing to pay for. When surveyed, 60% of the generation reported being influenced by social media.
It’s not just products, though. Twenty percent of millennials reported that skincare and beauty treatments, from manicures and facials to hair appointments, were essentials that they weren’t afraid to spend money on. Older generations were less impressed with self-care experiences. Only 11% of Gen Xers and 12% of boomers said that the services were a necessity.
Dining Out
Dining out is a luxury that 24% of millennials consider essential, and they are willing to pay to enjoy it regardless of their financial situation. In fact, over half of millennials (51%) said they would rather reduce long-term savings than give up experiences, like eating at a restaurant, that they find important.
Travel
More than one-fifth of millennials (21%) deem travel a necessity, moving it from its more traditional nonessential category. The generation is much more focused on experiences than their predecessors. According to TLC Worldwide, research indicates that millennials are driving the experience economy, with 75% stating that they prioritize spending on experiences over material goods.
Food Delivery
Millennials have also prioritized convenience, with 20% responding that they consider food delivery services essential and are willing to spend money on them. However, as with grocery delivery food delivery services, such as UberEats and DoorDash, come with a price.
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