This is especially true for millennials: 89% of millennials say rising prices have them tracking their spending more closely, compared with 84% of Gen Xers, 80% of Gen Zers and 79% of baby boomers.<\/p>\n
Note: The survey defines Gen Zers as those 18-29; millennials, ages 30-45; Gen Xers, ages 46-61 and baby boomers, ages 62-80. <\/p>\n
Millennials are starting to hit their peak earning years, so it could be surprising that they\u2019re also the generation most likely to focus on tracking their spending due to rising prices. But this cohort is likely also in its peak spending years: The median first-time home buyer is 40 years old, according to the National Association of Realtors, and many Americans are starting or continuing to grow their family into their 30s and 40s. This could make millennial finances tight and reining in spending especially important in the face of rising costs.<\/p>\n
Which costs are standing out to millennials<\/p>\n
Some millennials are finding surprises in both necessary and discretionary expenses.<\/p>\n
When asked which categories they were surprised to discover they were spending more than they expected in the past six months, about two-thirds of millennials (66%) said groceries and 54% said gas. Dining out (42%) and household goods (41%) were also among the most commonly cited categories.<\/p>\n
Necessities like groceries, gas and healthcare may be hard to reduce. But even amid rising costs, you can take steps to identify why your spending has increased and make adjustments for more breathing room in your budget going forward.<\/p>\n
How to keep budgets in check<\/p>\n
1. Separate inflation from habit creep<\/p>\n
Yes, the cost of living is up. But that isn\u2019t necessarily the only contributor to higher spending.<\/p>\n
If you haven\u2019t already, track your purchases<\/a> for a month. Consider whether increased expenses are due to inflation, habit creep or a little of both. Spending money isn\u2019t a bad thing, but if it\u2019s gotten a little out of hand, it may be time to scale back.<\/p>\n 2. Target the biggest categories first<\/p>\n Identify your discretionary expenses, or the spending you could feasibly cut back on. Which categories are taking up the largest chunk of your budget? Work on those first. Focusing on the big stuff can make a greater overall impact than trimming a little bit across the board.<\/p>\n It also may be worth looking at how much you spend on necessities. Groceries are a non-negotiable expense, but there may be some more affordable swaps you can make, like opting for lower-cost proteins or shopping weekly sales.<\/p>\n 3. Set realistic limits for high-cost categories<\/p>\n A tempting \u201cfix\u201d to a potential spending problem is cutting costs to the bone, but this is often not sustainable. Let\u2019s say you want to cut back on dining out and you typically spend $500 a month on this category. Slashing your budget to $25 a month probably isn\u2019t realistic over the long term.<\/p>\n Instead, try cutting your dining out spending by $50 or $100 this month. If that\u2019s not enough, cut it again the month after that, and so on. The goal isn\u2019t dramatic cost cutting followed by burnout. It\u2019s to build sustainable habits that improve your finances going forward.<\/p>\n 4. Build in a cushion for uncertainty<\/p>\n Some price increases simply can\u2019t be helped, and that\u2019s where a buffer can come in handy. If possible, keep a few hundred dollars extra in your spending plan to account for costs that are higher than expected. That way, you can handle it when factors outside of your control put you over budget.<\/p>\n This also might be a good time to reevaluate your emergency fund<\/a>. Experts recommend saving enough to cover three to six months of expenses. Does your current savings still meet that need at today\u2019s costs? To determine your goal emergency fund amount, consider necessities only \u2014 like housing, groceries and insurance \u2014 plus a little extra for any surprises.This survey was conducted online by The Harris Poll on behalf of NerdWallet from May 5-7, 2026, among 2,072 U.S. adults ages 18 and older, 585 of whom are millennials. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +\/- 2.7 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact [email\u00a0protected]<\/a>.<\/p>\n Disclaimer<\/p>\n NerdWallet disclaims, expressly and impliedly, all warranties of any kind, including those of merchantability and fitness for a particular purpose or whether the article\u2019s information is accurate, reliable or free of errors. Use or reliance on this information is at your own risk, and its completeness and accuracy are not guaranteed. The contents in this article should not be relied upon or associated with the future performance of NerdWallet or any of its affiliates or subsidiaries. Statements that are not historical facts are forward-looking statements that involve risks and uncertainties as indicated by words such as \u201cbelieves,\u201d \u201cexpects,\u201d \u201cestimates,\u201d \u201cmay,\u201d \u201cwill,\u201d \u201cshould\u201d or \u201canticipates\u201d or similar expressions. These forward-looking statements may materially differ from NerdWallet\u2019s presentation of information to analysts and its actual operational and financial results.<\/p>\n
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