(WXYZ) – Millennials may not be thinking about saving for retirement.
In fact, a new report suggest Millennials spend more money on coffee than they do investing in their future.
Coffee can be a treat to some and a necessity to others.
According to Acron’a Money Matters Report, out of nearly 2,000 millennials surveyed, 41% of them spent more money on coffee than investing in their retirement.
Financial advisors say it doesn’t take a lot to save a lot for the future.
Jack Riashi of Bloom Asset Management explained, « Putting that into a 401K or putting it into a Roth IRA, where you invest the money and over a period of 30 or 40 years making 5% or 6%, that amount of money can grow. »
We asked some coffee drinkers how much they spend on their cup of joe!
Kelly O’Neil is a Millennial coffee drinker and spends $10 a week.
She said, « I try to but sometimes it doesn’t work that way. »
22-year-old Paul Bell says he has a savings plan but he spends more than $40 a week at coffee shops.
That could be a savings of $2,000 a year.
« Probably to more important things like school, gas money, probably some into my savings, » he said.
Financial advisors say it’s best to enroll in your company’s 401K and save at least 10% of your income in two different accounts, one for rainy days and one for retirement.
You don’t have cut the java out altogether, make like a tea and add some green.
Riashi added, « If they know 10% of their income is going towards savings retirement, then they know how much they should be able to spend on coffee. »
Financial advisors say it’s never too early to start thinking about investing.
