America's Wasteful Spending Habits: From DoorDash to Dead Subscriptions

From impulse DoorDash orders to forgotten streaming subscriptions, wasteful spending is a habit for many Americans, and younger generations are leading the charge.

Nearly 1 in 10 millennials waste money every day, while 45% of Gen Z say boredom at home drives unnecessary purchases, according to a Motley Fool Money survey.

To curb these costly habits, consider using rewards credit cards to earn cash back on everyday spending, or budgeting apps to track expenses and flag waste. Small changes can turn impulsive spending into mindful saving.

Read on for a deep dive into wasteful spending statistics.

The most common wasteful spending habits ranked

Most Americans, some 85%, say they engage in wasteful spending at least occasionally, with frequently eating out being the most common wallet drain, cited by 38% of respondents.

Impulse buys from online retailers like Amazon is the second-most common wasteful spending habit, which 34% admit to doing regularly.

Twenty-eight percent regularly dump leftovers, with baby boomers leading the way.

Paying for unused streaming subscriptions is the fifth-most common source of wasteful spending with 30% of Gen Z and millennials paying for services they don't even use compared to 22% of Gen X and 17% of baby boomers.

Younger generations splurge on food delivery apps like DoorDash, Uber Eats, and Grubhub while older generations barely use them. Thirty-one percent of millennials and 27% of Gen Z say their food delivery orders are a regular source of wasteful spending compared to 22% of Gen X and just 12% of baby boomers.

Millennials and Gen Z report highest rates of wasteful spending

Younger generations are far more likely to admit they waste money, and waste often. While just 1% of baby boomers say they waste money daily, that jumps to 6% of Gen Z and 7% of millennials.

Nearly 20% of Gen Z and millennials say they waste money multiple times a week, far outpacing Gen X and boomers. And when it comes to self-control, boomers are three times more likely than Gen Z to say they never waste money.

Roughly 40% of millennials and 35% of Gen Z admit to wasting money a few times a month compared to 71% of boomers who say they waste money less than once a month or never.

Younger generations are more prone to emotion-driven wasteful spending

From ads to emotional impulse buys, there's no shortage of spending temptations. Different generations are more likely to pull out their wallet for different triggers, but across all ages online ads are the number one driver of wasteful spending.

Sales and discounts sway baby boomers more than any other generation while boredom and stress push Gen Z towards spending more than older consumers, and nearly 10 times more than baby boomers.

Influence from peers is a trigger for wasteful spending for 24% of Gen Z and 23% of millennials -- a sharp contrast to the 9% of Gen X and 6% of baby boomers who say that drives them to splurge. That divide is likely a reflection of younger generations' social media habits.

When do Americans overspend the most? When they're bored.

Shopping habits vary by generation, but boredom is the most common time that Americans open up their wallets for impulse buys. That's particularly true for Gen Z, 45% of which said they most frequently engage in wasteful spending when they're bored, compared to just 30% of baby boomers.

Older generations are more prone to wasteful spending during shopping trips or over the holidays and special occasions. Younger generations are more likely to splurge online late at night or during or after social events -- a reflection of lifestyle differences between older and younger Americans.

Gen Z is 2x more likely than boomers to spend $200+ on impulse buys

Younger generations are far more likely to drop serious cash on unplanned purchases, while boomers overwhelmingly keep their wasteful spending under $50.

Only 6% of baby boomers spend more than $200 impulsively, compared to 13% of Gen Z and 23% of millennials. On the flip side, 52% of boomers limit impulse buys to under $50, compared to just 21% of Gen Z and 18% of millennials.

Nearly 60% of Millennials and nearly 45% of Gen Z spend $100+ on impulse purchases, far above older generations.

Nearly half regret impulse buys, led by younger generations

Millennials and Gen Z are more likely to feel buyer's remorse than older generations -- especially after making unplanned purchases. Over half (54%) of millennials and 50% of Gen Z say they regret most of their impulse purchases. Just 41% of boomers and 46% of Gen X say the same.

Only 9% of all respondents say they never regret impulse buys. Regret is the norm, not the exception.

To avoid impulse purchases that turn into regrets, wait 24 hours to decide if the item is really worth buying or set a spending cap on unplanned spending with anything exceeding it triggering a pause.

How to stop the wasteful spending spiral

From boredom-driven buys to social-media-fueled splurgers, wasteful spending can be a drain on wallets, especially for younger generations. The reasons may vary, but the result is the same: money lost and often regretted.

Turning awareness into action is key to stopping the wasteful spending spiral. Track your spending, set limits, and pause before you purchase.

Just don't forget: treating yourself is still allowed, especially when it's a thoughtful choice.