15 Things Millennials Waste Money On

Millennials -- those born between 1981 and 1996 (who are now roughly 25 to 40 years old) -- are doing plenty of things right when it comes to money. For example, 94% of them are using coupons when shopping (53% of them very often or always), per a 2019 Valassis report.

But they're coming up short in some respects, such as when they spend money wastefully -- as all of us do on occasion, not just millennials. That can be a big deal, too: If you waste, say, $3,000 per year (that's just $250 per month), you can end up with nearly a quarter of a million dollars less come retirement -- because $3,000 per year growing at 8% annually, on average, grows to more than $235,000 over 25 years.

Here are 15 examples of how we (of all ages) might be wasting money. See which ones ring true for you, and if you can change some habits.

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Many of us spend much more than we need to on clothing. Lots of millennials enjoy finding vintage bargains at thrift stores, but others are hitting the malls or online stores, often paying a lot more than they need to for various items of clothing. If you buy a $120 jacket instead of a $60 one and a $95 pair of jeans instead of a $40 one, that might not seem like a big deal, but it all adds up -- especially if you're buying many pants, shirts, jackets, and shoes over the year.

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If you're carrying a heavy load of debt on credit cards, you're probably being charged a steep interest rate, and that can be very destructive financially. It's not uncommon to be charged 20% annually, and many people face even steeper rates. Carrying $25,000 in debt and paying 20% on it will cost you a whopping $5,000 annually -- just in interest.

Millennials can often be spotted sporting bottles of water. If they're using a reusable one and filling it from a tap or a filtered pitcher, that's great. But if they're buying bottles of water on the go, that can be very costly and can add up. Spending just $10 per week on such bottles will cost you more than $500 annually, and a $20-per-week habit will cost you more than $1,000!

Yes, it can be tiresome hearing repeatedly how wasteful it is to buy costly coffee, but it's often repeated because it's so true. An occasional fancy drink can be fine, but making a habit of it can really cost you. If you buy just three $5 drinks each week, that's $15 per week, and $780 per year. Over a decade, it's $7,800. If you can cut the rate by just half, you'll save a lot.

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Then there's alcohol. Buying a lot of booze at the liquor store can certainly cost you. A case of beer can cost anywhere from $15 to $30 or so, on average, depending on where you live, and an average bottle of red wine can cost around $15. You might save money by downgrading to a less pricey (but still satisfying) brand or by simply buying less. Three bottles of wine a week and a case of beer can cost you $65 per week, or more than $3,300 over a year. The cost will be far, far higher if you're buying many of your alcoholic drinks in bars or restaurants, where a single glass of wine can cost $10 or more and a cocktail can easily cost $15 or more. Going out with friends twice a week and buying several drinks each time can cost $60 per week -- plus the wine or beer you might consume at home.

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Many people, millennials and others, have pets, and it can be hard to imagine life without them. We reasonably have to buy them pet food and some toys and accessories, but it's very easy to get carried away. If you're buying your pet fancy organic food, outfits to wear on walks, and lots of toys, you may be spending a lot more than you should. A little time spent searching online might convince you that less costly food will serve your pet quite well, as will a few toys plus some string or boxes.

When it comes to personal care and grooming products, Americans spend billions, and much of it is unnecessary. Simple soaps and moisturizers are enough for most of us, but it's easy to succumb to advertisements for brands of lotions and potions and other items with cool names and appealing packaging. Some such items suggest that they can remove wrinkles or keep you from aging, and that's unlikely to happen. Again, a little time researching online can leave you with a revised opinion on what you really need. Instead of buying $20 or $30 bottles of this or that every month or two, consider whether a $5 or $10 bottle will do.

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Many people do various cleanses in order to "detox" their systems, and some cleanses can cost a lot. Unfortunately, though, according to many doctors, they won't detox you. As a WebMD article notes, "If your goal is to detox your system, don’t waste your time or money. Your body is an expert at getting rid of toxins no matter what you eat. Toxins don’t build up in your liver, kidneys, or any other part of your body, and you’re not going to get rid of them with the latest detox wonder." Indeed, some cleanses can even be harmful to your health. Save your money.

We all need entertainment, but we may be spending more on it than we need to. Consider, for example, whether you might save a lot of money by cutting that cable cord and just streaming your entertainment. If you've already done so, ask yourself whether you're subscribed to more streaming services than you actually need or use. You may be able to unsubscribe from one or two, and save $10 or $20 or more per month.

Here's a weird consequence of the popular habit of taking selfies to share on social media: a rise in cosmetic surgery -- especially among younger people. A 2019 report noted a 47% increase in cosmetic procedures since 2013, with most facial plastic surgeons noting an increase in them among those 30 years old or younger, per the American Academy of Facial Plastic and Reconstructive Surgery. If you really need a procedure in order to breathe better or a reconstruction after a necessary surgery, that's quite reasonable. It's less justifiable to spend thousands of dollars in order to make some body part(s) look better for the camera. Indeed, some procedures can turn out poorly or become problematic in the future.

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It can seem like you're treating your body well and investing in your health when you buy nutritional health supplements and similar items, but that's often not the case. As Tamar Haspel noted in The Washington Post last month, "Every year, Americans spend something like $35 billion on vitamins, minerals, botanicals and various other substances that are touted as health-giving but mostly do nothing at all." The best way to get all the vitamins you need is to simply eat a healthful diet, featuring lots of vegetables and fruits.

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The latest data from The Knot Real Weddings Study is illuminating. Whereas the national average cost of a wedding in 2019 was $28,000, it plunged to $19,000 in 2020 -- clearly due to the pandemic. That $28,000 number is staggering, and even $19,000 is a lot, considering that newlywed couples very likely could use much of that money for other important needs, such as a down payment on a home, furnishing a new apartment, or even just for a honeymoon. There are actually lots of ways to spend less on a wedding -- such as having it off-season or on a weeknight, and having a buffet meal instead of a served affair.

There's a lot of money to be saved if you can quit your gym. It might make a lot of sense to do that if you rarely go -- after all, you can get great workouts with weights at home, or via treadmills, elliptical machines, or runs through your neighborhood. If you do enjoy regular workouts at a gym, though, consider joining a low-fee one. Many millennials and others are paying $100 per month or more for fancy gyms that feature cafes, saunas, and more. If you spend $25 per month instead of $100 per month, that $75 savings adds up to $900 over a year, and a hefty $4,500 over five years.

Next up is spending on live events, such as sporting events or concerts. Tickets to such events often cost $100 or much more, and even if they only cost $50, if you go twice a month, that's $1,200 in annual spending -- $12,000 over a decade. If you're spending $250 per month, that's $3,000 annually. Data from Pollstar shows the average ticket price for top musical tours rising from about $78 to $96 between 2015 and 2019, and that's just average, meaning that plenty of events cost $200 or more per ticket. Consider reining in live event spending, only going to the events that are most compelling to you.

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A powerful way to save a lot of money is to quit smoking. The younger you are, the more you can save over the rest of your life -- a life that's likely to be longer, too, due to improved health. Consider that the price of a pack of cigarettes was recently close to $6, on average, across America (though more than $8 in about 10 states). If you smoke a $6 pack each day, you're spending $2,190 per year, and if your packs cost, say, $9 apiece, you're spending $3,285. A two-pack-a-day habit will double those figures.

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Many millennials are clearly wasting a lot of money -- as are most of us. But many millennials are also making smart financial decisions, such as staying in other people's homes when traveling (via home-sharing services) instead of hotels that may cost more and in many cases relying on ridesharing services instead of owning a car. The key for all of us at any age is simply to make sure we're living below our means -- spending less than we bring in -- and socking away enough money for our future financial security.

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