A new consumer survey finds Millennials tend to use cash, a debit card and checks more often ($5,200) and charge 22% less ($3,300) than the average consumer. Millennials used debit cards, cash and checks for 50% of their overall monthly spend, and credit for only 33%.
According to TD Bank’s Consumer Spending Index, on average, Americans spend $4,700 per year with a credit card, and $2,400 with cash, a debit card and checks for discretionary purchases.
The survey also found despite “going out” twice as often as Generation X and three times as often as Baby Boomers, Millennials spent less per month on purchases than their older cohorts.
On average, U.S. consumers spend more than $1,000 per month on discretionary items like dining/fast food, retail, entertainment, apparel, and travel and more than $1,600 per month on bills including rent and/or mortgage payments. That’s more than $32,000 annually, not including car payments/insurance, loan or debt repayments, or healthcare.
Millennials, by comparison, spend an average of more than $26,000/year, 27% less than Gen Xers and 23% less than Baby Boomers.
TD notes for the average consumer, one month of purchases generated annual cash back rewards of nearly $150, which equals one month of dining out, one month of gas, two months of entertainment or two months of coffee and fast-food purchases, based on survey respondents’ average spending.
More than one-third (39 percent) consumers don’t have a credit card, or have a card, but don’t participate in a rewards program. The average American spent $1,500 on dining out annually, yet one in eight consumers did not have a credit card with cash back rewards.
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