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Millennials may spend less on 'nonessentials' than GenXers

Millennials say they feel the most insecure when it comes to financing, according to CNBC. Adobe Stock

SALT LAKE CITY — A new report found about two-thirds of millennials feel they are living paycheck to paycheck, CNBC reports.

The new report, which comes from Charles Schwab, said only 38 percent of millennials feel they are financially stable.

In fact, millennials say they feel the most insecure when it comes to financing, according to CNBC.

The report surveyed 380 millennials (ages 23 to 38) in the Schwarb's 2019 Modern Wealth Report.

Yes, but: The survey found that millennials spend $478 on "nonessential" purchases like eating out, entertainment, luxury items and vacations. That's less than Generation X, who say they spend $578 on "nonessential" items, but $359 more than baby boomers spend.

"It may seem odd that when we look at statistics that say so many millennials are living paycheck to paycheck, but on the other hand, they're overspending," says Farnoosh Torabi, personal finance author and host of the "So Money" podcast, according to CNBC.

There's been an ongoing debate about "nonessential" items and how much Americans spend on those items in recent days. USA Today shared a graphic that explained Americans spend close to $18,000 per year on "nonessentials," or about $1,497 per month.

The report listed the following average monthly expenses as "nonessential" items:

  • Restaurant meals: $209
  • Drinks: $189
  • Takeout/delivery: $178
  • Buying lunch: $174
  • Impulse purchases: $109
  • Rideshares: $96
  • Personal grooming: $94
  • Subscription boxes: $94
  • Cable: $91
  • Online shopping: $84
  • Gym classes or memberships: $72.53
  • Paid apps: $23.24
  • TV or movie streaming services: $23.09
  • Music streaming services: $22.41
  • Coffee: $20.25
  • Bottled water: $17.47

According to my report for the Deseret News, Twitter sounded off on USA Today for identifying things like "lunch" and "online shopping" as nonessential items.