“The Rise of Coffee Shaming for Millennials”

Frankly, as a millennial myself, I’m tired of hearing about how our $5 coffees are the sole culprit that is putting us behind the eight ball for purchasing a home, saving for our kids college, or being set up for retirement.  Singling out one specific purchasing habit and assuming it is a “problem” for an entire generation fails to address the myriad of financial issues that we do face.  Additionally, I sit firmly in the camp that believes you can buy what you want (including a Starbucks coffee) and not feel guilty about it if you’ve set out a budget for yourself.  Unfortunately, there are personal finance “experts” of the old guard that think differently, and in this article we put forward a couple of reasons on why this is the case and why it might be a flawed view of personal finance.

“Generational Bias”

It is certainly true that millennials’ love for coffee is certainly more acute that generations before.  Millennials make up roughly 25% of the American population but consume 44% of our coffee.  Coffee has become a cause for social gathering, business meetings, or simply some alone time, but it is true that us Millennials love our coffee more than the generations before.  Therefore, most of the “latte critics” that you hear out there are not surprisingly from an older generation who didn’t consume coffee the way that we do.  I think this bias is natural and unsurprising, but certainly something the older generations could acknowledge as a factor towards their viewpoint.  As a millennial, just don’t ask them how many lattes it took them to buy their 4,000 square foot suburban mansion; that really gets them going!

“The 80/20 rule has a lot of Application”

The 80/20 rule, sometimes called the Pareto rule, states that for most events in life 80% of the effects come from 20% of the causes.  I think this absolutely true when it comes to personal finance.  The reality is that if you can ensure that your expenses are not outpacing your income on a consistent basis (20%) then so many issues of your financial future are solved (80%).  To be honest, not pinching every penny and watching every dollar has been a learning process for me.  However, I’ve come to find that if someone can get the basics taken care of with their income and spending habits, then spending money on things that bring you joy (including a coffee) should be celebrated and not shamed! 

Personal finance is just that…PERSONAL!  Everyone’s goals, issues, and solutions are different.  Assuming that coffee purchases are a big problem for an entire generation is just simply short sighted, and instead should be viewed in light of an individuals overall financial picture.  Do some millennials have spending problems?  Absolutely!  Do some baby boomers have spending problems?  You bet!  Getting clear about your goals and having a written game plan to achieve them is where the real gold is found.

July 26th, 2019