Millennials’ Vices: Where Do Young Americans Spend the Most Money on Guilty Pleasures?
30 July 2014 - 12:00AM
Business Wire
Level Money Report Analyzes Millennials’ Coffee
Shop, Bar, and Fast Food Purchases; Reveals the Most Popular Brands
and Top Spending States for Generation Y
Level Money, the mobile-first financial services company, today
released a national report revealing how Millennials spend money on
their guilty pleasures. Level Money was designed for Millennials,
and the company has deep insight into their financial habits and
needs. The report analyzes spending activity during the first half
of 2014. The results provide an important look into the spending
behaviors of Americans aged 18 to 35, specifically how they spend
their hard-earned money across popular “vices” in the categories of
coffee, alcohol and fast food.
Millennials, a demographic of nearly 75 million people, wield
powerful purchasing power. Given this influence, merchants and
brands have a lot to learn from Millennials’ regional preferences
and how their spending habits differ from other age groups.
Specifically, Level Money’s data shows that brand loyalties of
Millennials are shifting from those of previous generations. While
Starbucks and McDonald’s still lead as top brands for coffee and
fast food purchases, respectively, Millennials are branching out in
wide swaths: McDonald’s lead among Millennials is only 2-to-1,
compared to a 3-to-1 lead among the general population1.
“By better understanding this generation’s unique financial
behaviors and motivations, and their brand interactions, those of
us in the technology, personal finance, and business industries can
better reach and serve them,” said Level CEO and Co-Founder Jake
Fuentes. “In doing so, we can help them build successful financial
futures and kick-start life-long, beneficial customer
relationships.”
Key findings of the data report include:
States in which you are likely to find the
most caffeinated Millennials: You might think that the home
of Starbucks—Washington—would be the most caffeinated state. Not
quite! Washington posts a strong showing at #5, but the most
jittery Millennials can be found in Maine. Also of note,
Millennials don’t drink a lot of coffee in the South or the Plains
States. A Millennial from Maine or Massachusetts spends six times
as much at cafes as one from Mississippi or North Dakota. Those
states where Level Money members spent the most and least at coffee
shops:
Top States for Coffee Shop Purchases:
- 1. Maine
- 2. Massachusetts
- 3. New Hampshire
- 4. Connecticut
- 5. Washington
States with the Lowest Coffee Shop Spending:
- 46. Utah
- 47. Wyoming
- 48. West Virginia
- 49. North Dakota
- 50. Mississippi
Where Millennials are eating on the
go: The South and Plains States top the list for most fast
food purchases. The leader, Oklahoma, spends almost three times as
much per day as the least fast food-oriented state, Vermont. The
Northeast leads the pack of Millennials who spend the least at fast
food establishments. Top and bottom states for fast food
purchases:
Top States for Fast Food Purchases:
- 1. Oklahoma
- 2. Kansas
- 3. Texas
- 4. Virginia
- 5. Maryland
States with the Lowest Fast Food Purchases:
- 46. Montana
- 47. Pennsylvania
- 48. New York
- 49. Connecticut
- 50. Vermont
States that embrace happy hour: The
Northeast is well-represented in the category of highest bar and
liquor store expenditures. Top and bottom states for bar/liquor
store purchases:
Top States for Bar and Liquor Store Purchases:
- 1. Massachusetts
- 2. Colorado
- 3. New York
- 4. Wyoming
- 5. Illinois
States with the Lowest Bar and Liquor Store Spending:
- 46. West Virginia
- 47. Iowa
- 48. South Dakota
- 49. Alabama
- 50. Mississippi
Top brands for fast food:
McDonald’s retains its lead percentage-wise with Millennials at
11.7% of total purchases, but by a smaller margin than in the
general population. Level Money data also shows that Millennials
differ because they favor Chipotle over Subway as the runner-up.
The following are the top fast food restaurants with Millennials
nationwide (and percentage of users for each):
- 1. McDonald’s, with 11.7% of total fast
food purchases
- 2. Chipotle, with 6.4% of total fast
food purchases
- 3. Subway, with 6.2% of total fast food
purchases
- 4. Taco Bell, with 4.6% of total fast
food purchases
- 5. Chick-Fil-A, with 4.2% of total fast
food purchases
Top brands for coffee: The big
brands still remain the leaders, with almost half of Millennials
choosing Starbucks as their go-to for a caffeine fix; however,
while Starbucks may come in first, the data shows Millennials are
steadily branching out to other chains such as east coast favorite
Dunkin' Donuts. The top coffee shop brands with Millennials
nationwide (and percentage of users for each) are:
- 1. Starbucks, with 45.5% of total
coffee shop purchases
- 2. Dunkin' Donuts, with 12.9% of total
coffee shop purchases
- 3. Peet’s Coffee, with 1.2% of total
coffee shop purchases
- 4. The Coffee Bean & Tea Leaf, with
0.9 % of total coffee shop purchases
- 5. Tim Horton’s, with 0.9% of total
coffee shop purchases
To view the full report and accompanying graphics visit:
https://levelmoney.com/assets/ya-vices-1.pdf
Methodology: Level Money anonymously analyzed the
spending behaviors of its over 500,000 member base from January
2014 – June 2014. Based on the data, Level Money determined in
which states Millennials spent the most and least at coffee shops,
bars and liquor stores, and at fast food restaurants. They also
analyzed the percentages of the total spend across brands to
determine the most and least popular among their members.
About Level Money: Level Money is dedicated to building a
financially sustainable society for today’s young adults. Level
Money’s approach begins with everyday decisions: the Level Money
application provides an instant, at-a-glance read on financial
health. Level Money applies the “quantified self” approach to
finances, eliminating the need for budgets. Level Money’s mission
is to create a fully-integrated, next-generation financial services
company designed for the 21st century. Level Money is led by a team
with deep experience in design, mobile engineering, and finance,
all oriented towards a common objective: setting up the next
generation for financial success. Named a top startup to watch in
2014 by Mashable and Business Insider, the company is funded by
Kleiner Perkins Caufield & Byers and is headquartered in San
Francisco, California. For more information, visit
LevelMoney.com.
1 http://www.qsrmagazine.com/reports/qsr50-2013-top-50-chart
SutherlandGold for Level MoneyVictoria Krammen,
415-848-7178press@levelmoney.com