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Necessities cost Millennials 143.22 hours of work a month



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With the rising cost of living, it’s not surprising to see that Millennials will have to work longer and harder than previous generations. But, exactly how long do they have to work to afford their expensive lifestyles filled with daily Starbucks runs, restaurant dinners, Uber trips, and their love for new tech?

According to calculations in a new GOBankingRates study, using the 40-hour workweek, the typical Millennial would need to work about 143.22 hours a month – slightly more than three and a half weeks – to afford the basic necessities of rent, utilities, health insurance, groceries, a tank of gas, monthly internet, and a typical student loan.

While the study was conducted in the United States, the theme hits close to Malaysia, where an earlier study by JobStreet.com found 98% of 1,454 employees are urging employers for pay increases of 5% to 50%. This demand could have been fuelled due to the implementation of of Goods and Service Tax (GST). Another 90% of the local employees disclosed that they are unable to cope with their daily expenses.

Here’s how many hours Millennials need to work to afford their current lifestyles:

Monthly utilities
Estimated cost: US$146.38
Equivalent number of work hours: 9.45 hours

Health insurance monthly premium
Estimated cost: US$314 per month
Equivalent number of work hours: 20.27 hours

One month of groceries
Estimated cost: US$334.09
Equivalent number of work hours: 21.57 hours

Full tank of gas
Estimated cost: US$33.29
Equivalent number of work hours: 2.15 hours

Typical student loan monthly payment
Estimated cost: US$280
Equivalent number of work hours: 18.08 hours

Monthly internet
Estimated cost: US$50.92
Equivalent number of work hours: 3.29 hours

Monthly rent
Estimated cost: US$1,059.51 per month
Equivalent number of work hours: 68.41 hours

ALSO READ: Rising living costs worry 85% of Singapore’s employees

Here are some other Millennial “essentials” GOBankingRates listed out:

Food and drinks

Starbucks venti caffe latte
Estimated cost: US$4.15
Equivalent number of work hours: 0.27

Bottle of wine
Estimated cost: US$10
Equivalent number of work hours: 0.65 hours

Dinner at a restaurant
Estimated cost: US$39.40
Equivalent number of work hours: 2.54 hours

McDonald’s Big Mac
Cost: US$3.99
Equivalent number of work hours: 0.26 hours

Chipotle chicken burrito
Estimated cost: US$6.50
Equivalent number of work hours: 0.42 hours

ALSO READ: Why Malaysia might be attracting fewer expatriates

Travel

Uber trip
Estimated cost: US$13.36
Equivalent number of work hours: 0.86 hours

Subscriptions

Spotify premium membership
Cost: US$9.99 per month
Equivalent number of work hours: 0.64 hours

Netflix subscription
Cost: US$9.99 per month
Equivalent number of work hours: 0.64 hours

Entertainment

Movie ticket
Estimated cost: US$8.42
Equivalent number of work hours: 0.54 hours

Disneyland ticket
Estimated cost: US$105 (“regular” ticket)
Equivalent number of work hours: 6.78 hours

Beyonce ‘Lemonade’ album on iTunes
Cost: US$17.99
Equivalent number of work hours: 1.16 hours

Taylor Swift concert tickets
Estimated cost: US$111.90
Equivalent number of work hours: 7.23 hours

Upgrades

Pair of new Nike running shoes
Estimated Cost: $74.48
Equivalent number of work hours: 4.81 hours

iPhone 6s (16 GB)
Cost: US$649
Equivalent number of work hours: 41.90 hours

Want to know how much you’re working to afford your “essentials”? Here’s the formula:

Cost of the item / Your hourly pay = Number of hours you must work to pay for that item

“While many Millennials fork over half of their income – or more – per month for rent and other bills, there is always a band concert or iPhone upgrade looming in the distance,” said Kristen Bonner, lead research on the GOBankingRates study.

“We hope that our study findings will put into perspective the true costs associated with being a young adult today, and help millennials struggling with a budget to realise that some of those ‘essentials’ might just not be worth it.”

Image: 123RF

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