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What Should Millennials Consider Doing With Their Money?

Insights from experienced financial professionals.

As the oldest millennials have reached their forties, this generation is purchasing homes, paying off student loans, and starting their families. But while millennials might get some teasing for their "avocado toast" tastes and penchant for convenience, these 30-to-40-year-olds represent a powerful economic force. What are millennials spending their money on now, and what might they do to help increase their assets over the next few decades?

What Do Millennials Spend Money On?

The millennial generation was born between 1981 and 1996 and they already face financial obstacles.1 From graduating just before the Great Recession to taking on unprecedented amounts of student loan debt, millennials have to manage some serious economic issues.

Generally, millennials tend to prioritize convenience, spending more than other generations on:

  • Online shopping

  • Debt repayment

  • Eating out

  • Streaming services

  • Socially conscious products and services

  • Experiences and travel

Millennials prize the value of their time and tend to pay more for convenience, from online shopping and Instacart to streaming services, which may help make their lives easier.

What Should Millennials Do With Their Money?

With this love for convenience in mind, there are a few key things that millennials may do now to potentially help make their financial lives easier in the future.

Build a Solid Financial Foundation

Once you are not living paycheck-to-paycheck, it might be challenging to decide how to allocate extra funds. By creating a list of financial needs and prioritizing them, you may better assess your overall financial situation.

Some of the questions you may want to ask yourself during this process include:

  • How would you cover expenses in an emergency?

  • Are you taking advantage of any 401(k) match your employer offers?

  • Do you have high-interest debt that you should pay down?

  • What are your financial goals over the next five to 10 years?

It is important to have a source of funds you can use to pay a sudden vehicle or home repair or a health emergency. It's also a good idea to pay off any high-interest debt you have before you begin investing your excess cash. By taking stock of your overall financial situation, you will be better able to set your goals.

Consider Your Future

For many millennials, the idea of FIRE (Financial Independence, Retire Early) is appealing. Instead of working well into your 60s or 70s, you may be able to retire early and do all those things you want to do in retirement. Even if you are not sure the FIRE lifestyle is a good option, planning for an earlier-than-expected retirement may help you if you have to leave a job before your expected retirement date.

By running the various scenarios available to you, you may have a better idea of your options. By talking to a financial professional, you might design a path forward toward your goals over the next 20, 30, or 40 years. Everyone has their own risk tolerance, goals, and preferences, so there is no one-size-fits-all answer to a millennial's financial needs.


1 A Look at How Millennials Spend Their Money, U.S. News and World Report,

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Investing involves risks including possible loss of principal. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by WriterAccess. LPL Tracking #1-05301724