Written By: Grace T.
Coffee has become one of the most popular drinks in the world. From starbucks, to collectivo, to brewing your own at home, it all comes with a cost. Four to five dollars doesn’t seem like a lot, but how much are you really spending chasing that caffeine kick? To most millenials (41%), they are willing to spend more on coffee than their retirement fund.According to Cliff & Pebble, the average american spends anywhere from $1,221-$1,577 per year at starbucks. Each visit seems harmless as we are “just spending $5”. But that turns into a habit. It consistently turns into no big deal and quite possibly a daily routine. Not only does the illusion of coffee prices entice us into buying a coffee, but the convenience as well. There are 15,144 locations across the nation and 31,256 worldwide. With that being said, odds are there is at least one starbucks on your way to school or work. Another part of convenience is online ordering. Being able to online order shortens wait times and takes the cost directly out of your bank account. This reduces the probability that one is consciously tracking spending and realizing the determinants of buying starbucks coffee every day.
Although those numbers seem scary, there are many solutions and alternatives. The cheapest alternative is to brew at home. Making a cup of coffee at home costs about $245 a year. Although that may take up more time, that is saving anywhere from $976-$1,332 a year-which is a big enough difference to be worth it. Another alternative is cheaper coffee shops. Places like Duncan Donuts, Panera, and Caribou Coffee all are a dollar or so less than starbucks per cup. That will save a small amount of money each time which accumulates to save more in the long run. The final solution is to limit the amount spent per week. Rather than going every day, limit it to a few times per month/week to lower the annual cost.
Coffee chains are never going away. With coffee being the leading beverage for adults above 18, coffee shops will continue to evolve. Knowing how to budget and the importance of tracking spending can help reduce how much is spent in a year and save money for the future.
Works Cited
Cliff & Pebble. “Here's How Much Your Starbucks Habit Costs You.” Cliff & Pebble, cliffandpebble.com/blogs/our-blog/heres-how-much-your-starbucks-habit-costs-you.Editors of Publications International, Ltd. “Coffee Facts.” HowStuffWorks, HowStuffWorks, 29 May 2008, recipes.howstuffworks.com/coffee-facts.htm.
Herrera, Tim. “Here's Some Money Advice: Just Buy the Coffee.” The New York Times, The New York Times, 24 June 2019, www.nytimes.com/2019/06/23/smarter-living/personal-financial-advice-coffee.html.
Lock, S. “Starbucks: International and U.S. Stores 2019.” Statista, 19 Nov. 2019, www.statista.com/statistics/218366/number-of-international-and-us-starbucks-stores/.
Rella, Emily. “This Chain Restaurant Has the Cheapest Small Cup of Hot Coffee.” AOL.com, AOL, 15 July 2016, www.aol.com/article/2016/03/04/this-chain-resturaunt-has-the-cheapest-small-cup-of-hot-coffee/21323049/#.
VanderKnyff, Rick, et al. “Should I Be Spending $6 on a Coffee?” NerdWallet, 13 Dec. 2019, www.nerdwallet.com/blog/finance/should-i-be-spending-6-on-coffee/.
I am not an avid starbucks coffee drinker, but I do enjoy coffee in general. I usually either make a cup at home, or buy it at Kwik Trip. It shocked me to learn that the average american spends anywhere from $1221 - $1577 annually at starbucks. That’s 2% of the average american’s salary. With approximately $1500, you could buy a refrigerator, a microwave, a flat-screen tv, an iPhone, and more, if you spend your money wisely. There are many other more productive ways to spend money, like investing in the stock market, saving for a retirement plan, or paying off student loans. It really made me think about how much people depend on coffee, and in turn, how much it has culturally affected the US as a nation. Imagine the economic impact if we suddenly wouldn’t be able to rely on coffee imports, or if starbucks, dunkin donuts, or any other large coffee-producing company went out of business.
ReplyDeleteI am definitely one to fall for the coffee trap you described here. Typically, I will purchase between 1-4 drinks a week depending on the week. I also feel as though as my life has gotten busier and ordering has become more convenient with online technology, I am spending more and more on coffee. I have, however, began buying coffee at some of the "cheaper" options you mentioned. From here on out, it is definitely a good idea to track my spending on coffee and attempt to limit this amount.
ReplyDeleteIs it cheaper to brew at home for just straight black coffee or more complicated drinks as well? I would guess it is probably still cheaper even if you want to have it blended or add flavors into it but it is interesting to factor in that as well. I would say most Americans are all about convenience and wouldn't want to take that extra time to make it themselves, even if it saves them a lot of money.
ReplyDeleteI do not drink coffee myself but I love Starbucks hot chocolate and get it ton during the winter. To make that more convenient, I also have the app and I tend to spend more since it is just a quick click on my phone rather than handing over the cash. It was interesting seeing in your article how much people really spend. It can save people hundreds of dollars and even time to just brew at home and also waste less but using your own reusable cups.
ReplyDeleteI am one of those coffee lovers that you talk about and I can completely see myself looking at the price of a coffee and saying "it's only 4 dollars" but in the long run it becomes a lot of money. My brother and his wife bought their own fancy coffee maker to allow them to make almost any drink. While the machine was a lot, they say that they have saved hundreds of dollars instead of going to collectivo every day. Making your own coffee at home is probably the best way to save on coffee because you can make it exactly how you want it while saving hundreds of thousands of dollars.
ReplyDeleteInformation like this is why I'm kind of glad I don't drink much coffee (or soda, similarly). We spend so much money on it that could go to other things, and all in all it isn't too healthy anyways. One thing I like that this brings up again is the concept of things being worth it in the long run, even if they might be expensive at first. Prices build up, though it's not easy to see unless you're thinking of the future. Another thing I want to comment on is that it is also good to, as an alternative, support local businesses like the Brewers Two Cafe down by the lake.
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