15 Things Millennials Spend Money On That Are Worth It

Millennials have been getting a bad rap for their spending habits for years now, and we're here to bust some myths about it today. Now sure, we keep hearing that the avocado toast-loving, custom coffee-drinking generation are lagging behind when it comes to home ownership and saving for retirement, but it's not all bad.

There are two reasons Millennial spending habits are so different from other generations. First of all, it's a sign of the times: economics, the cost of living, and values have shifted. Deciding where to spend your money gives you a sense of power and control. Instead of buying a house, they're buying trips because the price of a home has doubled in the last four years alone. The younger generation is incapable of increasing income faster than the older generation devalues it.

And second of all, they're learning from previous generations about what not to do. In fact, their spending habits mirror the results of the longest study on happiness ever conducted: Harvard's study on adult development. This study began in 1938, and researchers have followed their original participants for almost their entire adult lives. Now they're studying the next generations. The study found that nurturing relationships, having new experiences, and helping others is what increases your happiness in the long run. You know, most Millennials are living according to those results now.

Not everyone is the same, right? In fact, Millennials fall into three behavioral clusters when it comes to spending: value, quality, and image. These clusters change depending on their current earning potential, but the data shows where most Millennials in the study or survey stand with their spending power. We have to say, while it might be criticized, it's kind of worth it.

So let's dive into these 15 expenses that Millennials get criticized for, but are actually totally worth it.

Today, we're kicking off our list at number one: great experiences over tangible assets. Traveling was once a treat reserved for those who had spent 40 years of their life working, right? For decades, they saved up and looked forward to that one big trip, sacrificing years of time and money to save for it. They had the big trip, they loved it, and maybe older generations will take smaller holidays, something more in line with how much they're able to do and move at their age.

But that's not really a consideration for most Millennials. Traveling, backpacking, and going on holiday is factored into their monthly budget. For many Millennials, there are two to three yearly big trips and smaller weekend holidays throughout the year. While they're criticized for what some people think is a frivolous way to spend money in their younger years, the contentment and satisfaction they get from it is undeniable. Traveling and trips make people happier. So why do you have to wait for years of working to do it? It might be a big expense right now, but it pays off in dividends later in life.

Number two: great aesthetics, captivating presentations, and memorable impressions. A quick glance at how much people spend on skin care, luxury brands, makeup, and furniture will show you exactly where Millennial money is going. Millennials look younger and more put together than previous generations. A 40-year-old in the 80s and a 40-year-old now are like night and day; they look like they have at least two decades between them in age.

Dress styles are well thought out, well planned, and prepared for. When they decorate their homes, there's continuity in the color, textures, and styles. They know that how you look is a reflection of who you want to be, and how your home looks should reflect how you want to feel. Crafting the living environment of your dreams is important for your mental well-being and productivity, even if you're renting. Crafting a perfectly presented image of yourself is all a part of a story that you want people to know about you.

Number three: early investment into passion projects. Buying a vintage car and spending your retirement years fixing it up was one of the big passion projects for previous generations. They also loved DIY home improvement and collecting memorabilia, but they only allowed themselves to explore these passions later in their lives, once they were more settled in with more money and with the children all grown up and gone.

The Millennials have thrown out the timeline playbook on this altogether. Passion projects aren't something reserved for your later years. If you love something now, do it now. It might eat into your paycheck, sure, but it will expand your happiness.

Number four: launch prices for an elevated status. Now you might think you're spending too much money on the latest iPhone, MacBook, or even a pricey night out, but that expense has more value than just the product you see. Having the latest technology, paying for drinks at an exclusive cocktail bar, or taking your date to a Michelin-star restaurant—these things elevate your status.

Their value is in the impression and story that you're telling people. It shows that you have your life together, that you prioritize quality, and you're interested in progress in every part of your life. If you tell the right story—the one you want people to know—then you'll attract the right people. Now, this might mean to you that you live on ramen noodles for the rest of the month, but if that story fits your bigger vision, it'll ultimately pay off later. But keep in mind, though, it still has to make financial sense. Okay, make sure you're elevating your status to impress the people who are willing to bring more value into your life, not for nothing.

Number five: tailored control over digital consumption. Recently, Telegram's CEO Pavl Durov was arrested at a French airport. Now, the arrest is said to be because of a lack of moderation on the app. Telegram is ranked as one of the biggest social media platforms, on the same list as Facebook, YouTube, WhatsApp, and Instagram, but they have a different key focus: privacy.

With its 1 billion active users, it's clear that consumers don't want to be selling their data and conversations and have it freely available for manipulation. We value privacy and control, especially in the digital space, and with the rise in digital crime, that security is much more important than ever. Hackers, scammers, and phishing sites are looking for holes in your armor, so you have to suit up.

Millennials are happy to invest in measures that keep their private and financial data safe. It's why the sponsor of today's video, NordVPN, is considered one of the most valuable assets to your personal security. Just think about it: how much time do you spend online? How much private information do you give to different websites without even thinking twice? You can't avoid it, okay? So the least you can do is strengthen your armor.

If you've watched our videos before, then you'll know that the Alux team—all of us—we've been using Nord for years, and it's because they have features like Threat Protection Pro, which stops malicious websites and avoids trackers and ads. You can also organize complex passwords and keep them all in one secure place. You can save your files to a private cloud, and their next-generation encryption allows you to log into your accounts, make bank transfers, and shop online without any worries, even on unprotected Wi-Fi networks.

They also don't track, collect, or share your data, so if you don't have Nord yet as a safety feature in your life, it is important to get on this. So we've got a great deal for you, Aluxer: when you purchase their two-year plan, you're automatically going to have four extra months totally for free. To get this deal, visit nordvpn.com/alux. We've also added the link to the description box so you can access it from there too, and it's risk-free with Nord's 30-day money-back guarantee.

Just imagine having all of your savings disappear because you mistakenly put your banking information into a malicious website. This happens, okay? So protecting yourself is essential, and Millennials are showing that they are willing to spend the money on this.

Number six: food. Food as an activity, not just a necessity. Food delivery services are a scam; you get far more value at a restaurant for the same price. At a restaurant, you're paying for the service, the ambiance, the music, and the setting—not to mention the food is hot and fresh. All of this creates a unique experience.

The restaurant industry is seeing record profits, and their chairs are filled with Millennials. They're a generation willing to reduce their savings budget and splurge on a good meal with great friends. While that sounds reckless or immature, we've seen time and time again how important social interaction is for our happiness. They're not just spending money on the food, okay? They're investing in the experience.

Your food explodes with flavor; sometimes it's delivered to your table or smoking on a fire. It gives you something to be excited about, to experiment with, and to remember. They're investing in enjoying something that makes them happy and sharing that experience with people who give them inspiration, comfort, and a good time.

Number seven: people and resources that motivate and inspire them. The motivational industry was estimated at $43.7 billion back in 2022 and is expected to grow at a compound annual growth rate of 5.5% from 2023 to 2030. The books, speakers, and courses don't come cheap. Tony Robbins is said to charge $100,000 for an hour-long talk, and tickets to his events go for around $900.

That's a big expense, but you know what? It's often worth it. On the Alux app, you've got all of that knowledge and motivation at your fingertips for a fraction of the price. You can get access to experts on topics ranging from how to be successful, how to become a solopreneur, money 101 where we give you the financial basics, to money 201 where we teach you about investing—all the way to how to deal with narcissistic parents and mindfulness in a fast-paced world.

We've got all the bases covered in the Alux app, so if you're not in there already, definitely get yourself a subscription at alux.com/app. All of this kind of content is valuable because it gets people motivated and inspired. These events and apps give you a chance to listen to people who share your values. You learn from their experience and share their knowledge and stories. Ultimately, they bring a wealth of enjoyment, excitement, and education to your life.

Number eight: a wedding to remember. For the last few years, the cost of weddings and the amount that people—especially Millennials—are willing to spend on them has come under some heavy criticism. Most newlyweds are spending around $30,000 on their wedding, much more than previous generations. Millennials are more likely to have destination weddings, week-long activities, and expensive clothing and décor.

But this is a once-in-a-lifetime experience. These are the memories you'll keep forever; it's a time for different families and friends to come together and celebrate love. So why shouldn't you save up and spend your money on it? Time passes, and so do the moments, but you'll always have these memories and photos, and you want them to be filled with the things you love: the décor, the dress, the music.

It might only be one night, but if there was ever a time to spend the money and make it a night to remember, this is the night.

Number nine: an expensive new hobby. Every few years now, hobbies can get quite expensive, and Millennials will often change their interests every couple of years. So that's new gear, new club fees, and more expenses. But trading that experience for social interaction, physical and mental activities, and a productive use of your time gives you a far greater net benefit.

You're happier, healthier, less stressed out, and more active. Isn't that what we're all striving for anyway? If that takes a chunk of the money you make, surely it's worth it for all you get in return.

Number ten: pricey brands that match their values. Fast fashion still dominates the retail world, but smaller eco-friendly and sustainable brands are coming up. They might be more expensive, but they're worth it when they contribute to a more sustainable environment and fair equal pay for their workers.

There's also a focus on the status that comes with high-quality items. Millennials are scaling back to buy things that are better quality, which gives them a much better cost per use. They grew up learning about how their actions can influence the world in better ways—no matter how small that action is.

They're willing to spend more on brands that align with their values, even if it takes months to save up for a branded product. They're willing to do it because they know it's going to be a durable and timeless piece. We're learning just how stylish and classic luxury or bespoke brands can be. Finding one that matches your style and your idea of the world is like a gold mine, and Millennials are willing to spend that money.

They started a movement that other generations are joining too, and the next generation is carrying on that torch. There's still a long way to go, but at least there's progress being made. If we're advocating for a better world, it starts right here with us and putting our purchasing power where our values lie.

Number eleven: small treats that add up to a good life. It's the daily coffees, the avocado toast trope, the beauty treatments, supplements, and healthy foods—they all add up eventually. These things make you feel more confident and relaxed; they give you something to look forward to after a hard week. They tone down those feelings of stress and anxiousness, but in a fast-paced, quick-shifting world, it's important to have things that ground you.

They're the small things that brighten your day and give you something to look forward to. Now, for a while, we all saw massive growth in these small treat purchases, but they're evening out in favor of accessing great quality at home. Millennials are realizing that if you invest in a premium coffee maker and high-quality beans, you can create your own experience and joy at home with the small things.

It's too fast-paced to be about the community and too transient to be about connection. So it's the convenience and familiarity of the actual treat that's being enjoyed. You know you'll always enjoy an avocado toast; you know that a good coffee always boosts your mood, or the massage makes you feel more relaxed.

We're beginning to realize that we can create these moments at home with the right tools. There's no need to buy from places that inflate their value; you can get the same feeling of happiness, expectation, and contentment from them while holding on to some control of your money.

Number twelve: mental health and therapy. Now, while the media is kinder about Millennials spending their money on things like therapy to work on their mental health, the under-the-breath comments or outright protests from parents, grandparents, or older relatives show a different side. They just don't believe that expense is worth it.

When you come from a generation whose motto is to buckle up and pull yourself up by your bootstraps, there's no space for dealing with your past problems, and there's definitely no money to spend on it. But therapy and mental health initiatives have helped Millennials move the world forward and show that there isn't just one path to happiness and success.

It's okay to be different, to make choices that don't always follow society's expectations, and to want to live your life honestly and out loud instead of suppressing strong emotions and experiences, which only sets the stage for those strong emotions to come out in other, less healthy ways.

Number thirteen: exclusive gym memberships. Why do you need to go to such an expensive gym? Just go for a run! Okay, yeah, that's the old outdated line. Those exclusive gym memberships don't just come with great equipment and fun, interactive group classes; they've got saunas and sunset rooftops for you to enjoy. They've got co-working spaces and weekly events. They're cleaner, and people share similar goals and values, which makes it great for networking opportunities.

You get a membership to an exclusive place where you know the people who go there are on the same level as you. Equinox gyms look like luxury high-end apartment complexes—the kind of complex that costs hundreds of thousands of dollars to join, where you have to be recommended to even be considered to live there.

But it's a gym, which means that as long as you can pay the monthly fee, you have access to it. It's a community where working out isn't just something you do; it's a lifestyle and something you enjoy. You get friendships, and people hold you accountable. You get a space away from home that makes you feel comfortable and relaxed when the rest of your life feels overwhelming and stressful.

It's spaces like these that give you something to look forward to, and Millennials are capitalizing on this.

Number fourteen: things that save them time and make their lives easier. There's always a lot of chatter about how wasteful getting groceries or food deliveries can be. On-demand laundry or home cleaning services are seen as an extravagant luxury, but when these things save time—one of the most valuable assets anyone has—then spending the extra money is worth it.

You then use that time to make more money. With the time that you're saving, your price per hour is probably more than the person that you're hiring, and if you can use that hour to work on your business or side hustle, then you're making money and getting things done.

There's limited time to do all of the things you have to do and the things that make you happier, so if you have the ability to limit your chores in favor of the things that make you happy, you shouldn't feel guilty about that. But let's be clear; that only works when you trade it for something that's a lower value than what your time is worth. If you're paying more per hour than what you make, you're losing out in the long run.

Number fifteen: peace of mind. Knowing that important things are taken care of—health insurance, IV drips, and regular checkups for yourself or doggy hotels, doggy daycare, pet insurance, and weekly grooming—Millennials will pay for the peace of mind of knowing that the things that are important to them are safe, taken care of, and protected.

Now that's not to say that other generations didn't do this, but Millennials are taking it a step further. Health, friends, family, and pets are important, and if they have to pay a subscription service to make sure these things are covered, they'll do it. If it's important to a Millennial, they're going to get the highest quality of life and protection they can afford.

And since you stuck with us until the very end, Aluxer, you're getting a bonus: rent where they earn and buy where it makes sense.

Now there are three main reasons why most Millennials are still renting. First of all, the price of real estate has increased disproportionately to salaries. Secondly, they're traveling a lot more and living in other cities. And third, they live in really expensive cities because that's where the money is. So they choose to rent where they earn, and if and when they can afford it, they'll buy when it makes sense.

Sometimes this means they'll rent in New York City and own a home in Utah. Other times, it means they rent in Bali and are saving to own a place in a small town in France, where they hope to raise their family one day. Buying and living in the place that you've bought doesn't make a lot of sense right now. The earning potential to home ownership price is too steep, so it has to be broken up into different strategies.

You either move to a city with a high earning potential and rent while buying a place somewhere with a lower cost of living, or you're a digital nomad who lives in a place with a low cost of living and then has some spare savings to put toward buying in an area that you can afford.

And that's all from us today, Aluxer! Let us know in the comments below which generation you are from, and do you agree with these spending habits or do you think it's utter nonsense? Let's chat in the comments section; we'll see you there. Until next time, my friend, take care! [Music]