Millennials Spend $3K More on Summer Than Boomers — Here's Where It Goes
Millennials are bleeding cash this summer to the tune of about $3,000 more than boomers. And it's not just wanderlust driving the gap. Sure, travel is the main culprit, but there's more going on here. Between milestone trips, concerts that cost more than rent and expensive bills at trendy restaurants, millennials have managed to turn summer into a financial endurance test that boomers apparently didn't get the memo for.
So, where exactly is all that money going? Let's break it down.
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Vacations Do the Heavy Lifting
Travel is where the spending gap really opens up. A survey conducted by AAA and Bread Financial found that 76% of all summer travel is tied to important life milestones like birthdays, weddings, anniversaries and other celebrations. Gen Z and millennials are the generations leading that surge. While 89% of Gen Z and 88% of millennials are reportedly planning their travel around these milestones, only 57% of boomers are doing the same.
A separate report from McKinsey found that in 2023, millennials took nearly five trips on average while boomers took less than four.
Then there's the international angle. Millennials are way more likely to book flights overseas than boomers, which immediately puts their per-trip costs in a different stratosphere. Factor in that millennials with kids have more flexibility around school schedules, and summer becomes prime time for that extra trip nobody technically needs but everyone does.
Given that the average one-week vacation in the U.S. runs between $1,991 and $2,275 according to Pacaso, just one trip can eat up more than $2,000 of your summer budget.
Live Events Continue To Draw Millennials
If travel is the headline, concerts are the surprise expense that sneaks up on you. Millennials will straight-up sacrifice other budget categories for live events — grocery shopping, dating apps, streaming subscriptions, you name it. A PayPal survey found that 45% of millennials plan to catch a concert or festival this summer, compared to 38% of Americans overall. That's not just casual interest. That's prioritization.
AMW group reported that the average concert ticket runs $144, which sounds manageable until you factor in parking, overpriced venue beer and the fact that millennial-favorite artists can command a serious premium.
Take Taylor Swift's Eras Tour as an example. Seat Data found after analyzing 87,000 secondary market sales that the average price of a ticket was $2,800. Even if you're not a Swiftie, that same price inflation applies to other major acts that draw millennials.
Millennials Spend More on Dining
Here's the thing about summer travel: you're not cooking. Nearly every domestic summer traveler — 98% according to the National Restaurant Association — plans to eat out during their trip.
After a full day of sightseeing, hiking or just existing in a new city, the kitchen feels like a punishment. Restaurants are convenient, inevitable and for millennials specifically, a huge part of the vacation experience. So much so in fact, that 30% of U.S. restaurant revenue comes from travelers and visitors. And since millennials make up the lion's share of that traveler demographic, they're footing a disproportionate amount of those bills.
But dining isn't just a travel expense. It's a millennial thing year-round. Millennials simply eat out more than boomers do, which means their summer dining bills are already higher before they even leave home.
Visiting major cities and tourist destinations only compounds those costs, since restaurants in prime locations are likely charging a premium for their food. Combine that with the fact that millennials are more likely to have young families and boomers are more likely to be empty nesters, and millennials can find themselves spending hundreds of extra dollars on dining this summer.
If you're a millennial watching your summer budget evaporate, at least now you know exactly where it's going, and you can decide if those priorities still track for you. Summer's expensive, sure. But that doesn't mean it has to break you (or empty your bank account).
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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