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 and £705.96 a year on eating out. And you can add £522.60 a year on takeaways and £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.
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.
Three-quarters of those surveyed (75 per cent) said they would be willing to make short-term compromises on their spending to fund their long-term life goals such as buying a home, going on a luxury holiday or purchasing a car. When asked what they would do with more disposable income, 44 per cent of those surveyed said they would save it, while just 13 per cent said they would spend. Four in 10 (40 per cent) said they would balance it between spending and saving.