Country wide, education costs and student spending are at an all time high. College tuition is a huge cost and most students have to adjust to living on a tight budget. College students are also stereotyped to be “broke” – but this does not mean they aren’t spending money. This demographic is adopting some spendy habits, according to new data by Bankrate. Additionally, according to a report by Charles Schwab, college students are more likely to spend money on comforts and conveniences like pricey lattes, Ubers, and trendy restaurants to buy the latest food and drinks. Sixty percent of millennials admit to spending more than $4 on coffee, 79 percent will splurge to eat at the hot restaurant in town and 69 percent buy clothes they don’t necessarily need.
The study discovered that college students are falling into common financial habits that are hard to shake: daily trips to Starbucks and other coffee shops, racking up bar tabs and dining out often.
The average college student eats out or buys take-out five times a week, and 29% said they buy coffee at least three times a week.
“Often, it is the minor, habitual expenses, such as take-out and alcohol, that wreak havoc on their budget,” said Sarah Berger, Cashelorette at Bankrate. “Small steps such as preparing meals at home and brewing coffee at home can add up to big savings over the course of a year.”
However, although college students are more liberal with their spending habits, they are more planning-oriented in comparison to previous generations. This planning is due to the fact that college students are constantly monitoring their bank accounts, planning ahead financially to their next traveling or other experience.
