We refuse to accept the avocado toast theory. Here are the top 10 things people think millennials are wasting their savings on — and where research says their money is actually going.

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The Theory: Avocado on toast
Avo on toast isn’t the only thing Australia exported to Canada — so is the idea that millennials can’t afford to buy a house because they’re going out for brunch. This one all started when an opinion-editorial was published in The Australian in October 2016.
"How can young people afford to eat like this?” wrote columnist Bernard Salt. “$22 several times a week could go towards a deposit on a house."
RELATED: Where do Canadians spend the most money each year?
"How can young people afford to eat like this?” wrote columnist Bernard Salt. “$22 several times a week could go towards a deposit on a house."
RELATED: Where do Canadians spend the most money each year?

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The Reality: Housing
Just because millennials can’t afford to put a down-payment on a house doesn’t mean they’re homeless. Regardless of whether they rent or own, millennials still need somewhere to live and invest only slight more of their annual spending (35 per cent) than boomers (31 per cent) on housing.

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The Theory: Instagram followers
C’mon, really? (And even if they are, followers don’t actually cost that much.)
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RELATED: Instagram cult beauty products you need right now.

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The Reality: Education
The truth is that millennials aren’t trying to make a quick buck as influencers. We’re actually the most highly educated generation. And guess what, folks? All those degrees combined with rising tuition costs adds up to a heck of a lot of student debt.
RELATED: The most expensive private schools in Canada.
RELATED: The most expensive private schools in Canada.

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The Theory: Amazon Prime addictions
It’s just so convenient, right? However, contrary to what you might think, convenience doesn’t dictate millennial spending habits. . .
SEE ALSO: 20 things Canadians pay less for.
SEE ALSO: 20 things Canadians pay less for.

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The Reality: Goods from small businesses
. . . supporting small businesses does. According to an RBC survey, millennials are more willing than other generations to buy goods or services if they’re sold by a local business. We’re also more likely than other generations to research purchases before making them, and to buy products that have a human story behind them.

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The Theory: Uber
Think millennials “killed” car ownership? Not so fast...
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RELATED: 10 Canadian careers that'll be in demand in 2020 and after.

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The Reality: Cars
On the outset, it might look true that millennials are buying less cars. But most statistics on the subject don’t control for external factors, such as where millennials live. A 2019 working paper posted by the National Bureau of Economic Research looked at these external factors and determined that those born between 1980 and 1984 were actually just as likely to own cars as their parents’ generation.

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The Theory: Electronics
Gotta keep up with the Jonses, you know?
RELATED: Items that save you hundreds of dollars over time.
RELATED: Items that save you hundreds of dollars over time.

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10 / 20
The Reality: Experiences
Yes, we do need our smartphones. But ultimately, countless surveys and studies have demonstrated that millennials favour “experiences” over “things.” Millennials are much more interested in collecting memories than collecting china.
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RELATED: The best women's-only adventures you have to experience before 2020.

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11 / 20
The Theory: Expensive meals out
Okay, so here’s the thing — millennials are more likely to spend money on eating out than Baby Boomers or Gen Xers. But this doesn’t mean they’re eating exclusive at Michelin-starred restaurants. . .
RELATED: Financial mistakes Canadians make and out how to come back from them.
RELATED: Financial mistakes Canadians make and out how to come back from them.

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12 / 20
The Reality: Workday Lunches
It turns out that millennials affinity for eating out may have nothing to do with their generation and is actually a product of their life stage. Historically, expenses for food away from home decline with age. So while a retired person has plenty of time to prepare meals at home, those in the workforce are more likely to their lunch or go out for a meal with coworkers.
SEE ALSO: Why custom catering is becoming the next best dining experience.
SEE ALSO: Why custom catering is becoming the next best dining experience.

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The Theory: Entertainment
Millennials only spend about $2,311 annually on entertainment (including pets, hobbies, tickets and admission fees) compared to the $3,144 boomers spend. It’s probably because we’re too busy working to go anywhere.

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The Reality: Childcare
Here’s the other reason millennials may spend less on entertainment — getting a babysitter is expensive. For those millennials with kids, it’s estimated that they spend more than $10,000 a year on childcare.
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RELATED: This is how to maximize your Canada Child Benefit.

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15 / 20
The Theory: Fast fashion
This one is kind of true. Millennials do spend more on clothing and personal services. However, there’s a catch as to why they’re spending more. . .
RELATED: 11 backpacks that are actually cool to wear as an adult.
RELATED: 11 backpacks that are actually cool to wear as an adult.

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16 / 20
The Reality: Sustainably made clothing
Forget fast-fashion. Thanks for trendsetters like Marie Kondo, millennials are more minimalist than previous generations. Instead of buying cheap, they look for quality and sustainably produced clothing. This, however, puts clothing at a premium, which may explain they invest more in this category.

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The Theory: Booze and cigarettes
Despite the proliferation of craft breweries and distilleries, millennials are less interested in alcohol than previous generations. Not only are alcohol sales down, sales of non-alcoholic beverages are on the rise. They also smoke less than previous generations.

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The Reality: Health food & beverages
While we’re not giving up booze just yet, we’re definitely interested in healthy, holistic and clean living. According to a Nielsen Global Health survey, millennials are more likely to pay more for premium health foods that have been sustainably sourced.

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The Theory: Millennials are bad with money
Like columnist Bernard Salt, Australian property developer Tim Gurner called out his generation on a news program for fiscal irresponsibility. “When I was trying to buy my first home I wasn't buying smashed avocados for 19 bucks and four coffees at $4 each," he said.
We’re not entirely sure how Gurner thinks $4 coffees add up to a down-payment (or how someone so astronomically bad at math managed to become a millionaire.
RELATED: 10 things new parents don't need to waste their money on.
We’re not entirely sure how Gurner thinks $4 coffees add up to a down-payment (or how someone so astronomically bad at math managed to become a millionaire.
RELATED: 10 things new parents don't need to waste their money on.

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20 / 20
The Reality: Retirement Savings
Millennials are saving money, not wasting it on coffee. It’s estimated that more than a third of millennials have a financial plan, compared 18 per cent of Baby Boomers. We’re also putting aside about 12 per cent of our earnings for retirement.
Translation: We’re looking forward to noshing on plenty of avocado on toast in our retirement.
RELATED: Why millennials are having less sex than any other generation.
Translation: We’re looking forward to noshing on plenty of avocado on toast in our retirement.
RELATED: Why millennials are having less sex than any other generation.
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