How Millennials Spend Their Money

New surveys show Millennials spend on cars, as well as burgers and booze.

August 05, 2014

NEW YORK – According to CNN Money, Millennials aren’t all do-gooders when it comes to their discretionary spending. The news site reported on a recent survey based on data of more than 500,000 users of the budgeting app Level Money.

First up in spending: alcohol. Average annual spending by Millennials varies by state, with Massachusetts, Colorado, New York, Wyoming and Illinois topping the list of those who spend on booze. Many Millennials are also breaking their healthy habits and binging on Whoppers and french fries, with McDonald's as the fast food chain of choice. According to the data, Millennials also like to splurge on lattes and Red Bulls, with Starbucks as a top choice for caffeine refueling.

Additionally, according to another CNN Money report, Millennials are responsible for a bigger percentage of new car purchases Generation X. Millennials born between 1977 and 1994, also known as Generation Y, bought 26% of new vehicles sold so far this year, according to a new report by J.D. Power and Associates. Meanwhile, Generation X shoppers, born between 1965 and 1976, accounted for only 24% of sales. The gap between generations X and Y should grow, too, as Gen Y buyers are expected to pick up the car buying pace through second half of the year, according to J.D. Power. The two younger generations have different tastes with Gen Y buyers favoring compact cars like the Ford (F) Focus while Gen Xers buy more small SUVs such as General Motors (GM)' Buick Encore.

However, neither of those younger crowds even touches the Baby Boomer generation, of course, which soaked up a full 38% of new cars and trucks sold during the first half of this year.

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