The Millennial Money Monster, a study into what is eating their money…
You need to hide, there is a monster out there, devouring the Millennial Generation's hard earned cash faster than Augustus Gloop can gorge his way through Willy Wonka’s Chocolate River. It is stopping them saving, stopping them getting on the property ladder and potentially stopping them enjoying retirement……..we all remember the Honey Monster….but this is….the Coffee Monster.
Fancy Dan, triple shot, double hot, soya, caramel macchiato and the such are sucking the money out of the pocket of hard working, career focussed Millennial’s and it needs to stop, and stop fast!!!
This of course, is tongue in cheek, but there is some truth to it as we found out at a recent Financial Education seminar that we conducted with a group of Graduates at a well known FTSE100 business. We were discussing the fact that it is so hard to get on the property ladder and the fact that in that room of 17 people, a massive 65% of the people there were not saving any money on a regular basis. During a session on money management, one of the Graduates allowed us to do a full analysis on their outgoings and the biggest surprise was the amount that was spent in the likes of Costa, Starbucks, Nero and Pret.
This led to a larger discussion about a session we conducted regarding personal money management and on average, in that group (is that the collective term, herd? Posse?) of Millennials, the majority of the group had at least 4 coffees a week (be it with work colleagues, friends at the weekend) from one of the aforementioned coffee chains. In coffee alone (ignoring the muffins, pastries etc) based on them getting a standard latte at £2.85, that is £11.40 a week on coffee, £45.60 a month or £592.80 a year on coffee.
Even the people in the seminar were surprised at the amount they spent on coffee and when we started to factor the various other treats you can get to do with your coffee, from dried mango to Gingerbread muffins, the amount being spent really is hampering the ability to save money, and this in turn will stop people doing the things they want….all due to our like for Coffee.
Put another way, if one of these Monster chains asked you to start a Direct Debit for £45.60 a month (similar to many Gym Memberships or contact lens payments) would you do that? No, well it would seem that many people are.
We pride ourselves on being able to educate people on all things ‘Money’ & ‘Personal Finance’ but this really was a money lesson for us, and one we will take forward to future Fortem Financial Education seminars.
Keep the monster at bay, by all means enjoy the frothy coffee, but know what you are spending and what you spending it on. Saving is a great habit to get into…Millennials have got into the habit of drinking coffees, get into the habit of saving…