India is home to more than 600 million young people in the age group of 18-34 years. They account for around 50% of our population. The young generation, or “millennials”, as they are often referred to, prefer access over ownership. So, what do they spend their money on?

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In order to study their money habits, Slonkit examined data of millennials who used the Slonkit card across a broad range of categories. Following are the insights about the spending habits of millennials as revealed in the survey.

Shopping (30%)
Millennials spend nearly one out of every three rupee they have on shopping. To be precise, they spend about 30% on shopping. A whopping 87% chose shopping online as against going to a physical outlet. Price comparisons, peer ratings, online reviews and free home delivery are among the key factors that enhance the appeal of online shopping for millennials.

Bills (29%)
Millennials spend around 29% of their money on utility bill payments. Convenience is a major driving force, as they can pay bills at the click of their smartphones and avail interesting pay back options.

Food and Drinks (27%)
Millennials are surely a busy generation, but they enjoy dining out more often than their previous generations. They also love to take away or get the food delivered to their homes. More than 60% of the millennials eat outside at least thrice a month. Research says, millennials who have recently entered the workforce spend three times as much on restaurant or club visits as they do on any other form of entertainment including movies, theatre and other recreational activities.

Groceries (8%)
Millennials spent around 8% of their income/ allowances on grocery. Majority of this is spent on online grocery shopping through e-commerce platforms.

Commute (6%)
Millennials are spending 6% of their income on daily commute. Majority of this spend is going to online cab aggregators. Also, we have witnessed occasional spend on travel portals.

Our data reveals that millennials do not mind going the extra mile to avail best offers available and to maximise the value of money.

By Javed Tapia
(The author is 
founder, Slonkit)
Source: DNA Money