What a Starbucks Habit Meant in 2015 vs. Today — And How Daily Treats Add Up Now
That daily trip to Starbucks or your favorite coffee shop may be affecting your budget and financial mindset more than you think. It could also tell you more about the economy than you expected.
Read on for a closer look at how daily treats add up amid the battle for your money.
Be Smart: Worried about market swings? See why investors are moving to gold and silver IRAs
Learn More: FREE 2026 Investor Guide + Up to $25,000 in Silver with Qualifying Purchases
Starbucks as Metric of Everyday Costs and Spending Power
“Starbucks isn’t just coffee,” said Melanie Musson, a finance expert with Quote.com. “It’s the new cup, the breakfast options, pastries and snacks that are easy to add to your order. That makes it even more expensive to stop every day.”
“Comparing a Starbucks habit in 2015 to today is interesting because it is a very visible example of how the cost of everyday life has changed,” said Ashley F. Morgan, bankruptcy and debt attorney at Ashley F. Morgan, Law PC. “People obviously earn more in nominal dollars than they did 10 years ago, but they are also paying significantly more for everyday expenses, like housing, groceries, insurance, vehicles, childcare, restaurants and countless other expenses.”
According to Morgan, Starbucks is a good way to show that spending power is down because people remember when getting coffee felt like a relatively inexpensive treat.
“A 2015 Starbucks menu, for example, listed a grande Caffè Latte at $3.99,” she said. “A comparable latte today can cost more than $5, and plenty of specialty drinks can cost more than $7 or $8, depending on the drink, customization and location.”
Per Morgan, the real issue is that Starbucks is only one of dozens of things competing for someone’s paycheck.
“Your coffee costs more, but your rent probably costs more too,” she said. “At the end of the day, groceries, insurance, eating out and many other normal expenses are just more costly. Even if someone’s paycheck has increased substantially over the last 10 years, the amount left after paying for everything else may not have increased nearly as much or at all.”
Starbucks vs. Salaries vs. Financial Choices
This higher cost of living is why people can make substantially more money today than they did 10 years ago and still not feel wealthier, according to Morgan.
“A $100,000 salary sounds like a lot of money, and it is a good income, but $100,000 today does not buy what $100,000 bought 10 years ago,” Morgan added. “I regularly review budgets with people earning well over $100,000 per year who still feel like they are living paycheck to paycheck.”
“Buying Starbucks isn’t the issue,” Morgan said. “These numbers aren’t to suggest everyone should stop spending money on their morning latte. I don’t like financial advice that suggests eliminating every small thing you enjoy. If you genuinely enjoy getting coffee every morning, have budgeted for it, have emergency savings, are contributing to retirement and aren’t accumulating debt, the coffee isn’t your financial problem.”
Bottom Line
Per Morgan, as someone’s income increases, $10, $20 or $30 purchases stop feeling significant. She added that people pay less attention because individually they can afford each purchase.
“But being able to afford each transaction isn’t necessarily the same thing as being able to afford all of them together,” she said. “Budgeting shouldn’t necessarily be about finding the cheapest possible way to live. It should be about intentionally deciding where you want your money to go.”
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion:
