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Most of us don’t think of ourselves as wasteful spenders. And yet, according to a Motley Fool Money survey of 2,000 U.S. adults, 83% of Americans admit to wasting money at least occasionally.
The common culprits are mostly little things. It’s the DoorDash order you didn’t need. The streaming subscription you forgot you had. The Amazon impulse buy that shows up at your door and you barely remember clicking “buy now.” It all adds up — and most people don’t even realize it’s happening.
I’m no saint. I cover personal finance for a living, and I still catch myself falling into these traps.
Here’s the good news: Once you know where the leaks are, they’re not that hard to fix.
The most common money wasters, ranked
Dining out tops the list — 31% of survey respondents said it’s their biggest source of wasteful spending.
But food-related overspending doesn’t stop there. Here are the top culprits, according to our research:
- Dining out frequently: 31%
- Convenience store food and drinks: 26%
- Online impulse buying (think Amazon): 26%
- Unused streaming subscriptions: varies by generation (up to 26% of millennials)
- Food delivery apps (DoorDash, Uber Eats): 20%
Notice a theme? A lot of it is food. And a lot of it is convenience spending that feels small in the moment but isn’t.
Why younger generations are hit hardest
Millennials and Gen Z waste money more often — and in higher amounts — than older generations. Nearly 1 in 10 millennials (8%) say they waste money every day. And 18% of millennials report dropping more than $200 a month on impulse purchases, compared to just 4% of baby boomers.
The triggers are different too. Sales and discounts hook everyone equally, but emotional spending hits younger people harder. Nearly half of Gen Z (47%) and over half of millennials (51%) say stress or boredom drives their impulse buys.
Social media and online ads pile on too, influencing roughly 28%-31% of younger spenders versus just 16%-18% of older generations.
Late-night boredom scrolling is a surprisingly expensive habit. If your phone is the last thing you see before bed, there’s a good chance it’s also where you’re spending money you didn’t plan to.
How to actually stop the leak
One of the most effective moves is separating your spending money from your savings.
When everything lives in the same checking account, all your money feels equally available. But if you move your savings somewhere separate — it feels more untouchable. That tiny bit of space saves you a lot.
A high-yield savings account (HYSA) is a great tool for this. It pays a much higher interest rate than a traditional savings account, it’s FDIC-insured, and it keeps your money slightly out of reach from one-click impulse buys.
Set up an automatic transfer on payday, and you won’t even have to think about it. Compare today’s best high-yield savings accounts here.
Beyond that, a budgeting app can do a lot of the heavy lifting. When your spending is automatically categorized and visible in one place, it’s a lot harder to ignore where the money is going.
The one-day rule is also worth trying. Before any non-essential purchase, wait 24 hours. You’ll be surprised how often the urge to buy something just… goes away.
Wasteful spending is incredibly common, but it’s not inevitable. A little structure — automated savings, a budget, and a pause before you buy — can quietly redirect hundreds of dollars a month toward something that actually matters to you.
See our top picks for high-yield savings accounts and start building your financial cushion today.
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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Joel O’Leary has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Uber Technologies. The Motley Fool has a disclosure policy.
