Assuming people from each generation save all of the post-tax income they don’t spend in the defined categories, We found that millennials and baby boomers both save less than 10% of their post-tax income, while Generation Xers save about 16%. Savings rates are below suggested levels for all three generations.On average, healthcare spending makes up 9.5% of total spending for baby boomers compared to only 5.4% for millennials. By contrast, healthcare spending increases with each older generation. Housing spending as a percentage of overall spending decreases as we look at older groups, with millennials allocating the highest percentage to rent and housing costs and baby boomers the lowest. Housing and healthcare spending vary the most by generation as a percentage of overall spending.That means Gen Xers outspend millennials and baby boomers by 41% and 18% respectively. Of their post-tax income, millennials spent an average of $52,874 a year, while Gen Xers spent $74,683 and baby boomers spent $63,325 a year. Millennials, Gen Xers and baby boomers had average post-tax incomes of $58,628, $88,794 and $67,950, respectively, in 2018. Gen Xers have the highest post-tax incomes and spend the most.Below, we discuss similarities and differences in 2018 spending across generations for those 11 major categories. We additionally considered other spending on personal insurance and pensions along with miscellaneous expenses. We grouped spending by needs and wants, defining housing, utilities & housekeeping, food, healthcare and transportation as needs and apparel & personal care products, entertainment, reading & education and alcohol & tobacco as wants. ![]() In this study, we looked at how different generations spend money. Using data from the Bureau of Labor Statistics’ 2018 Consumer Expenditure report, we considered the three largest living generations in the United States – millennials (born 1981-1996), Generation X (born 1965-1980) and baby boomers (born 1946-1964) – and their spending according to 11 major categories.
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