Millennials could save a whopping £10.5 billion* a year by making minor changes to their spending habits, new research from Barclays found.
More than two-thirds (67 per cent) of millennials admit they don’t save enough – or anything at all – with new findings showing that the average 20-37-year-old spends £3,312.72 a year on takeaways, eating out, daily treats, socialising and buying new clothes.
According to Barclays’ research, millennials spend, on average:
- £904.20 a year on socialising
- £738.96 a year on new clothes, shoes and accessories
- £705.96 a year on eating out
- £522.60 a year on takeaways
- £441 a year on daily treats (coffees etc.)
But rather than consigning themselves to a life of frugality, Barclays’ research shows that making small ‘swaprifices’, such as replacing every fifth takeaway, shop-bought coffee and night out with free alternatives or having a night in, could save millennials up to a hefty £662.54, on average.
Clare Francis, Director of Savings and Investments at Barclays, says: “There’s a common myth that you have to become a hermit if you want to save money. But that’s not the case. Think swap, not sacrifice. That could mean making yourself a coffee in the office once a week, or inviting friends over every now and then instead of going out. The beauty of these small swaps is that by simply tweaking your lifestyle, the savings you make can be huge.”
Making these small savings would build up over the course of a year to pay for bigger goals such as a four-night stay in New York and flights**, as well as just over £120 spending money, or a Glastonbury ticket*** and more than £400 to spend while at the festival.
Of those millennials that said they do save regularly, the average amount was £159.89 a month. If you added these savings to the cash accumulated by making ‘swaprifices’ on takeaways, socialising and other treats, they would be left with a whopping £2,581.22 after just one year – enough for a seven-stop, round the world travel ticket and £1,132.22 left over to cover hotels and spending money.
The research also found big differences in the average monthly spending priorities of millennials across the country.
– Scottish millennials had the highest monthly spend on memberships, such as gyms, sports clubs and cinema (£64.78), while those in the South West spend the least – just £21.53 per month.
– Londoners spend the highest amount on takeaways (£57.48) and eating out (£78.11). Millennials in Yorkshire spend the least on takeaways (£34.77) and those in the North East spend the least on eating out (£48.60).
– Millennials in the North East of England spend the most on new clothes, shoes and accessories each month (£92.04) while those in the East of England spend the least (£45.23). Those in the North East are also spending the most money on daily treats such as coffees (£75.83), while millennials in Yorkshire & Humber spend the least (£28.92).
– Those in the South West spend the highest amount each month on socialising (£103.81), while millennials in the East Midlands spend the least (£48.91).