The publication looked at Consumer Expenditure Surveys from the Bureau of Labor Statistics from 1989 and 2022 to compare spending habits now and then. Business Insider wanted to see how much of a disparity there was between baby boomer spending in the late 80s, when they were 25 to 34, compared to the current age cohort in 2022.
It turns out that the two groups spend around the same amount, when you adjust for inflation. Business Insider discovered that millennials in 2022 spent an average amount of $67,883 per year — about $5,000 more than their 1989 peers.
Young people often complain that life was much easier for their parents and grandparents. Though 2022 is definitely more expensive than 1989, the difference in spending habits between the two appears to have a lot more to do with changing generational attitudes rather than rising prices.
Carpets are out, soy milk is in
What’s clear from the Business Insider analysis is that trends have a huge impact on spending.
For instance, in 1989, wall-to-wall carpeting still dominated the home decorating trends. The 25-to-34-year-olds of the time spent an average of $139 a year on floor coverings.
But in 2022, minimalist fashion reigns and bare floors are what the younger generations want. Which means they only spend an average of $24 on floor coverings.
Another big fad can be seen in food consumption. Millennials currently spend 55% less on fresh milk and cream and 29% less on alcohol than their 1989 counterparts.
The plant-based movement likely plays a part in the decreased spending on dairy items. Younger consumers see non-dairy alternatives as better for the environment (though some argue they may be worse), increased food sensitivities and good marketing, according to a 2024 University of North Carolina paper.
The decrease in alcohol consumption, on the other hand, may be less a reflection of actual food consumption and more a reflection on attitudes about health. Gen Z is slightly younger than millennials, but 36% of them are going sober for their mental health, according to a recent survey from marketing company, NCSolutions.
Drinking also can be costly. You can save over $1,000 a year by abstaining from it — another reason that NCSolutions says that young people are staying away from booze.
