Chart: Millennials Making More Happen With Less
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Millennials Making More Happen With Less [Chart]

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Millennials Spending Habits [Chart]

Millennials Making More Happen With Less [Chart]

Recent survey sheds light on millennial spending habits

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

Despite the Western world’s general shift towards healthier eating, it may surprise you to learn that McDonald’s shares traded at all-time highs just days ago.

How is this possible?

Part of the reason is that although millennials will tell you otherwise, the name of the game for courting many millennials is still convenience. Price points at a restaurant such as McDonald’s still have wide appeal to a cash-strapped generation.

Based on a recent survey by TD Bank, the convenience trend is still on track. Here’s what we learned on millennial spending habits from the results.

Getting More out of Less

A major finding of the survey was that although millennials “go out” twice as often as Generation X and three times as often as Baby Boomers, they spend less per month on purchases than their older cohorts.

Millennials made more purchases on retail goods and dining than other generations, but spent less money overall. In fact, the only category where Millennials spent more than Gen X and Boomers is on coffee and fast food – demonstrating a need for food on the run and frequent doses of caffeine.

The average millennial went out 13 times each month, spending $103 for an average of $7.90 per transaction. This compares with nine trips with $122 of spend ($17 per transaction) for the average consumer.

The same was the case for grabbing “coffee and food on-the-go”, where millennials said that they went on more trips than the average consumer. Millennials also spent a higher total than others, spending $80 over 11 trips (compared with $67 over eight for the average consumer).

Experiences vs. Material Items

While the survey paints a picture of millennial thriftiness, we also think that there is another lens that can be used to shed light on the results. In particular, we believe this shows that the value that millennials place on having experiences.

To many millennials, “going out” is as much about the experience as the material food itself. Whether it is connecting with old friends at a new thin-crust pizzeria or trying a locally-roasted single-origin coffee with a significant other, it’s often more about sharing an experience with good company. It doesn’t have to be a fancy dinner or involve a $100 bottle of wine purchase to count as quality time.

This could be a partial reason behind a higher frequency of trips out, even though less money gets spent overall.

Cash vs. Credit

A final point of interest from the survey lies in the difference in how millennials make discretionary purchases.

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. 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, many of whom grew up during the Financial Crisis, are more averse to debt. This is corroborated by the results of a different survey showing that seven out of 10 millennials say they would prefer to use a debit card, rather than a credit card, for their purchases.

It’s also an attitude that we’ve covered in a previous chart of the week, where we showed that only 37% of millennials were confident in managing their credit, while 70% of millennials hold their savings and investments in cash.

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Personal Finance

Is $1 Million Enough for Retirement in America?

The average American needs their retirement savings to last them over a decade. In which cities is $1 million enough to retire comfortably?

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retirement savings

Is $1 Million Enough for Retirement in America?

The average American needs their retirement savings to last them 14 to 17 years. With this in mind, is $1 million in savings enough for the average retiree?

Ultimately, it depends on where you live, since the average cost of living varies across the country. This graphic, using data compiled by GOBankingRates.com shows how many years $1 million in retirement savings lasts in the top 50 most populated U.S. cities.

Editor’s note: As one user rightly pointed out, this analysis doesn’t take into account interest earned on the $1 million. With that in consideration, the above calculations could be seen as very conservative figures.

How Long $1 Million Would Last in 50 Cities

To compile this data, GOBankingRates calculated the average expenditures of people aged 65 or older in each city, using data from the Bureau of Labor Statistics and cost-of-living indices from Sperling’s Best Places.

That figure was then reduced to account for average Social Security income. Then, GOBankingRates divided the one million by each city’s final figure to calculate how many years $1 million would last in each place.

Perhaps unsurprisingly, San Francisco, California came in as the most expensive city on the list. $1 million in retirement savings lasts approximately eight years in San Francisco, which is about half the time that the typical American needs their retirement funds to last.

CityHow long $1 would last (years)Cost-of-living IndexAnnual expenditures
(after using annual Social Security)
Memphis, TN45.376$22,043
El Paso, TX40.381.4$24,789
Wichita, KS39.782.1$25,145
Tulsa, OK38.883.2$25,705
Indianapolis, IN38.683.5$25,857
Milwaukee, WI37.684.9$26,569
Oklahoma City, OK37.385.4$26,824
Columbus, OH37.285.5$26,875
Kansas City, MO36.786.2$27,231
Detroit, MI35.887.6$27,943
Baltimore, MD35.388.2$28,248
Louisville, KY35.388.4$28,349
San Antonio, TX34.489.7$29,011
Omaha, NE34.389.8$29,062
Albuquerque, NM33.691.1$29,723
Tucson, AZ33.391.6$29,977
Jacksonville, FL32.393.5$30,943
New Orleans, LA30.896.3$32,367
Houston, TX30.896.5$32,469
Charlotte, NC29.698.9$33,690
Forth Worth, TX29.399.8$34,148
Arlington, TX28.8100.6$34,554
Philadelphia, PA28.6101.2$34,860
Nashville, TN28.5101.4$34,961
Dallas, TX28.4101.6$35,063
Raleigh, NC28.2102.3$35,419
Fresno, CA28.1102.6$35,572
Phoenix, AZ27.6103.7$36,131
Mesa, AZ27.4104.2$36,385
Colorado Springs, CO27.3104.5$36,538
Virginia Beach, VA26.9105.6$37,097
Minneapolis, MN26.6106.5$37,555
Chicago, IL26.4106.9$37,759
Atlanta, GA26.3107.5$38,064
Las Vegas, NV24.8111.6$40,149
Sacramento, CA22.9118.2$43,506
Austin, TX22.7119.3$44,065
Miami, FL21.7123.1$45,998
Denver, CO20.4128.7$48,846
Portland, OR20.0130.8$49,914
Washington, D.C.16.4152.1$60,747
San Diego, CA15.4160.1$64,816
Long Beach, CA15.3160.4$64,969
Boston, MA15.1162.4$65,986
Seattle. WA14.0172.3$71,021
Los Angeles, CA13.9173.3$71,530
Oakland, CA13.8174.4$72,089
New York, NY12.7187.2$78,599
San Jose, CA10.8214.5$92,484
San Francisco, CA8.3269.3$120,355

A big factor in San Francisco’s high cost of living is its housing costs. According to Sperlings Best Places, housing in San Francisco is almost 6x more expensive than the national average and 3.6x more expensive than in the overall state of California.

Four of the top five most expensive cities on the list are in California, with New York City being the only outlier. NYC is the third most expensive city on the ranking, with $1 million expected to last a retiree about 12.7 years.

On the other end of the spectrum, $1 million in retirement would last 45.3 years in Memphis, Tennessee. That’s about 37 years longer than it would last in San Francisco. In Memphis, housing costs are about 2.7x lower than the national average, with other expenses like groceries, health, and utilities well below the national average as well.

Retirement, Who?

Regardless of where you live, it’s helpful to start planning for retirement sooner rather than later. But according to a recent survey, only 41% of women and 58% of men are actively saving for retirement.

However, for some, COVID-19 has been the financial wake-up call they needed to start planning for the future. In fact, in the same survey, 70% of respondents claimed the pandemic has “caused them to pay more attention to their long-term finances.”

This is good news, considering that people are living longer than they used to, meaning their funds need to last longer in general (or people need to retire later in life). Although, as the data in this graphic suggests, where you live will greatly influence how much you actually need.

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Personal Finance

How Does Your Personality Type Affect Your Income?

Can your Myers–Briggs personality type impact how much you make? See for yourself with this breakdown of average income for all 16 personality types.

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How Does Your Personality Type Affect Your Income?

You’ve just finished giving a presentation at work, and an outspoken coworker challenges your ideas. Do you:

a) Engage in a friendly debate about the merits of each argument, or

b) Avoid a conflict by agreeing or changing the subject?

The way you approach this type of situation may influence how much money you earn.

Today’s infographic comes to us from Truity, and it outlines the potential relationship between personality type and income.

Through the Myers-Briggs Lens

The Myers-Briggs personality test serves as a robust framework for analyzing the connection between personality and income, in a way that is easily understood and familiar to many people.

The theory outlines four personality dimensions that are described using opposing traits.

  • Extraversion vs. Introversion: Extroverts gain energy by interacting with others, while introverts draw energy from spending time alone.
  • Sensing vs. Intuition: Sensors prefer concrete and factual information, while intuitive types use their imagination or wider patterns to interpret information.
  • Thinking vs. Feeling: Thinkers make rational decisions based on logic, while feelers make empathetic decisions considering the needs of others.
  • Judging vs. Perceiving: Judging types organize their life in a structured manner, while perceiving types are more flexible and spontaneous.

For example, someone who aligns with extraversion, sensing, thinking, and judging would be described as an ESTJ type.

The researchers surveyed over 72,000 people to measure these four personality preferences, as well as 23 unique facets of personality, income levels, and career-related data.

Traits With the Highest Earning Potential

Based on the above four dimensions, extroverts, sensors, thinkers, and judgers tend to be the most financially successful. Diving into specific personality characteristics, certain traits are more closely correlated with higher income.

Personality TypeAverage Income Advantage (Annual)Trait(s) Most Correlated With Income Advantage
Extroverts$9,347Expressive, Energetic, Prominent
Sensors$1,910Conceptual
Thinkers$8,411Challenging, Objective, Rational
Judgers$6,903Ambitious

For instance, extroverts are much more likely to have higher incomes if they are quick to share thoughts, have high energy, and like being in the public eye. Thinkers also score high on income potential, especially if they enjoy debates, make rational decisions, and moderate their emotions.

The Top Earners

Which personality types earn the highest incomes of all? Extroverted thinking types dominate the ranks again.

Myers-briggs personality highest earners

Source: Truity

The one exception is INTJs, with 10% earning an annual salary of $150K or more in their peak earning years.

Personality and the Gender Pay Gap

With all these factors in mind, the researchers analyzed whether personality differences would affect the gender pay gap.

When the average salaries were separated for men and women, the results were clear: men of almost all personality types earn more than the average income for the sample overall, while all but two personality types of women earned less than the average.

Myers briggs personality gender pay gap

Source: Truity

In fact, women with high-earning personality types still earn less than men who do not possess those traits. For example, extroverted women earn about $55,000 annually, while introverted men earn an average of over $64,000.

Maximizing Your Potential

Are the introverted personalities of the world doomed to lower salaries? Not necessarily—while personality does play a role, many other factors contribute to income levels:

  • Level of education
  • Years of experience
  • Local job market
  • Type of industry
  • The particular career

Not only that, anyone can work on the two specific personality traits most aligned with higher incomes: set ambitious goals, and face conflict head-on to ensure your voice is heard.

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