Young people aren't splurging: the data debunks the myth

The myth of the young person who spends it all on treats: the consumption data says otherwise

With a salary of 1,200 euros and rent that rarely drops below 900, the question of why a young person doesn't buy a house seems to have an obvious answer. But the official narrative insists on another one: that they spend it all on Netflix. Data from Spain's Household Budget Survey says otherwise: young people are the group that has cut its spending the most over the last decade, while real consumption across all groups has been falling for ten years.

The statistical trap of youth spending

There's a nuance that gets ignored: the survey classifies households by the age of the head of household, so only someone who has managed to move out counts as a young household. The one still living in their parents' room at 30 doesn't appear in the series. The generation's real spending is even lower than the chart shows.

Spending little or saving little?

Some retort that if they spend less, they should save more. But saving depends on income, not effort. Pensioners earn more on average than young workers: they can spend more and still save less. The transfer isn't going on treats, but on rent: 88.8% of those over 65 own their home.

Here's the figure that throws things off: young people's consumption is falling while pensioners' is rising. Not because some are more prudent and others more wasteful: it's that 2008 broke the board. Those who already owned a home came out unscathed; those who arrived afterwards found a labour market in ruins and unaffordable housing. Blaming the young is the most comfortable way to avoid looking at who collects the profits of a model that no longer works for everyone.