Question of the Day: How much do millennials spend annually on coffee?

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Sep 09, 2018
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Budgeting, Behavioral Finance, Retirement, Question of the Day, Investing

Answer: $2,008

Thanks to Lynn Fischer of Kimberly High School (WI) for recommending this Question of the Day! 

Questions:

  • Assuming that they buy a coffee every day of the year (365 days in a year), what would be the daily cost of a cup of coffee? 
  • What are ways that millennials could reduce their cost of coffee without going "cold turkey" and not drinking it anymore? 
  • Are there things that you buy on a daily basis that would add up to hundreds of dollars spent on an annual basis? Any ideas on how you could reduce that cost?
  • Why do you think that it is easier to spend money on coffee than it is to save for retirement? 

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (The Simple Dollar Blog):

The average 25- to 34-year-old reported spending $2,008 per year at coffee shops, and according to a survey by the money app Acorns, 41% of millennials admitted to spending more on coffee in the past year than they had invested in their retirement accounts.

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Extend this latte question into investing with this NGPF Activity: What If You Invested That Latte? 

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.