There is a mug on my table in the office that says, “But first, coffee.” I bought it because that’s exactly what I do before I start working. Drink coffee. Then do the things.
It’s caffeine dependence, I admit. But as it turns out, many people of my age are so dependent on caffeine—or in love with it that their daily caffeine fix is literally drinking the world supply dry, and they are also spending more on a cup of java than putting money in their retirement savings.
In an October 2016 report of Bloomberg, it stated that millennials account for about 44 percent of US coffee demand, with more and more young individuals consuming coffee (48 percent increase among ages 18-24, and 51 percent up among 25-29).
For 29-year-old Joanna*, drinking coffee is part of her daily routine. “I drink coffee in the morning before going to work, after having lunch and before or after having dinner,” she told Manila Standard Young Life.
“It’s psychological, I guess, because I can’t seem to function very well without having my first coffee in the morning,” she shared.
Much like many others, drinking coffee also serves as her meditation, she said. “Having my morning coffee is also a means of savoring time for myself. In the afternoon, when I take a break over coffee, I take it as a time to reaffirm the positive events that took place earlier and to motivate myself to do more and be positive for the rest of the day.”
Millennials’s love for coffee is evidently growing stronger, as according to the first Money Matters Report of micro-investing app Acorns, almost half or 41.29 percent of its 1,911 18- to 35-year-old respondents said they spent more on coffee in the past year than they invested in their retirement. The survey, which looked at the spending habits of Generation Y, was commissioned through Survey Monkey in November 2016.
Joanna’s multiple visits to nearby coffee shop across her residence costs her about P4,000 a month. “I know this amount could have gone into my savings,” she admitted.
But at least, she said, it’s “more or less” the same money she sets aside for her retirement, “but I’m looking at adding more as I get older.”
Sandy*, a store supervisor in a large coffee shop chain told MS Young Life that the largest market in their branch are customers age 25 to 35. The number could be because the branch’s said location is near offices, but could also be because the “always-on-the-go” generation needs to be on top of their game as they embark on tasks or awake as they spend time having fun with friends.
If one spends more money on coffee than investing in their future, that could be a dangerous thing, no matter how perky one becomes as he takes on any challenge. Jacob Funk Kirkegaard, a senior fellow at the Peterson Institute for International Economics, told USAtoday.com the youth need “to drastically change their financial behaviors and start saving towards retirement.”
However, as the young lot chug down their cups of joe, only 8.47 percent of Acorns’ survey respondents are actually prioritizing saving for their sunset days.
There’s nothing wrong in indulging in a cup of java, or even being dependent to its stimulating effect, especially at times when you need it. But if a chunk of your budget goes to coffee shops thereby straining your finances, then you’re probably better off getting a coffee maker and beans of your choosing, and brew your own coffee at home or in the office.
Don’t forget to get a reusable cup, too, so you don’t add up to the waste destroying our environment.