New research from Yolt, the smart thinking money app and Cebr, has revealed that consumers under the age of 30 consistently spend the least amount of money on luxury items, in absolute terms and when measured as a percentage of their total expenditure. On average, millennials under 30 dedicate just 13% of their weekly expenditure to paying for luxuries, such as holidays, restaurant meals and alcoholic drinks.

This is the lowest proportion of any age range included in the research and is far lower than those aged 65 to 74 – the group which does the most luxury spending, allocating nearly one fifth (19%) of their weekly expenditure to these items³. When analysed over a ten-year period, the research revealed that most consumers now spend 42% more on luxuries than they did in 2006, but the millennials under 30 spend has increased by much less - just 29% on these items.

Pauline van Brakel, Chief Customer Officer, Yolt, said:

“Millennials have long been associated with frivolous spending, prioritising luxuries over long-term financial goals such as homeownership. Yolt’s#MillennialMoney research shows that whilst the share of total spending on luxuries has increased overall, this isn’t actually being driven by the younger age groups. Millennials are consistently spending less on luxuries than any other age group.

Spending on luxuries

The Yolt research shows that millennials under 30 spend less on luxuries than older people. Those in the 65-74 age category spend on average over £100 a week on luxury items which makes up almost a fifth of their total spending. Under 30’s on the other hand, spend under £70 each week, suggesting they are either tighter with the purse strings when it comes to splurging on bigger ticket items or have less surplus cash to spend on non-essentials.

Spending on essentials

The proportion of an under 30’s weekly salary spent on essential goods has risen by 4.3% since 2006, making up over 83% of their total expenditure. They now spend a higher proportion of their expenditure than any other age group on essentials, such as rent, food, electricity and gas bills, National Insurance contributions and tax. This is compared to 65-74 year olds where essentials make up 54% of all spending, with this figure falling to 51% for those aged over 75. Older age groups have also experienced far less of an increase in essentials’ share of their total expenditure. For 65-74 year olds, essentials make up 3.2% less of their total expenditure now than they did in 2006.

Wayne, 26 a Yolt user from the South East says:

“With a growing family, the main goal that we’re working towards is all about saving for that deposit. A big focus for me has been looking at where I can easily cut back and save. The little things add up.”

Pauline van Brakel, Chief Customer Officer, Yolt, said:

“When over 80% of your spending goes on essentials such as rent and bills, keeping track of what is left over can become even more important. Money apps like Yolt are designed with exactly this in mind, empowering users to track their spending and manage their savings, enabling them to worry about money management less.”