6 ‘Necessities’ Millennials Are Spending Money on That Hurt Their Finances
Written by
Crystal Mayer
Edited by
Ashleigh Ray
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Millennials have long been known for their willingness to spend money on non-essentials, especially when compared to their older counterparts. This generation has their own idea of what a necessity is and whether they’ll go into debt to afford it.
In April 2025, a study conducted by The Harris Poll on behalf of Intuit Credit Karma revealed 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%) said they’re willing to take on credit card debt in order to continue spending on those nonessentials. And nearly 60% said that they viewed spending money on hobbies and interests as a necessity and not a luxury.
Unfortunately, regularly spending on these newly classified necessities could cause money issues down the road. Here are six “necessities” millennials spend money on that could hurt their financial security.
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 also come with a price increase.
In 2024, Forbes estimated 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. This makes saving money with a home-cooked meal almost moot. According to the survey, 28% of millennials find grocery delivery services like Instacart and Amazon a necessity.
Consumers should be aware 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 prices for individual items.
Skincare and Beauty
Some 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. As seen in the other categories deemed essential by millennials, this 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 an essential expense to spend on. However, just as with grocery delivery, food delivery services, such as UberEats and DoorDash, come with a price.
Caitlyn Moorhead contributed to the reporting for this article.
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