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GDP is slowing. Every week, another big company announces thousands of layoffs. More and more economists are predicting a recession is around the corner.

You couldn’t tell from Gen Z. They’re spending more than they ever have before, even as every other generation pulls back. So we conducted a survey across generations to see how and why they’re spending and saving (or not), with an eye toward where Gen Z stands out.

Turns out Gen Z breaks down into four financial personas:

The Savvy Savers

Not all of Gen Z is on a spending spree. In fact, of all the generations we polled, Gen Z reported the most of any generation that they were reacting to rising inflation by saving more. Then again, it was still fewer than one in five.

Gen Zers were also more likely to say that their living expenses decreased as well as that they got a new or better-paying job, and they were tied with millennials to report that their salaries increased.

In order to meet their savings goals, Gen Z said they were more likely to seek professional help and work more than one job, and they reported starting side gigs nearly as much as millennials. Maybe Gen Z isn’t over hustle culture yet after all.

As for why, the answer is simple: Gen Z over-indexed on wanting to meet financial goals like a house or retirement.

The Treat Yoselfers

For every saver, there’s a spender — or maybe two or three, 37% of survey respondents reported that they had taken on debt to make a luxury purchase. For Gen Z, 48% reported spending on small luxuries frequently (things like takeout, self-care, or coffee shops), higher than other generations.

Specifically, Gen Z over-indexed on dining out, sports, theater, and… uhh, golf? You heard it here first, folks!🏌️

They're buying more big-ticket items too, including clothes and travel (more on that later), though millennials still spend more on technology.

Many in Gen Z are borrowing from their futures to pay for their present: 24% reported cutting back on retirement contributions, with 25% saying these savings aren’t a priority. Notably, they're not saying they can't afford to save for retirement… they just don't care as much as others. Maybe it's because, as the youngest generation in the workforce, they're looking at what the future holds and just giving up entirely on the prospect of retiring early.

The Travelers

Gen Z loves to travel, period. Our survey found that 25% of Gen Zers are saving for a bucket list trip, compared to 18% of millennials. They're also more likely to save for travel than other generations...

…and less likely to spend on it.

We’re not the only ones catching the vibe. A Morning Consult survey found that 52% of Gen Z took at least three leisure trips in the past year, on par with millennials and way ahead of Gen X (41%) and boomers (35%). Though Gen Z spent less on traveling, they're more likely to travel more. Why? They’re likely being more frugal; the same survey found that 61% of Gen Z frequent travelers are in households with incomes under $50K.

The Thunbergs

“Conscious consumer,” “sustainability-minded,” “ethical consumer,” “eco-friendly”... whatever buzzword you call it, Gen Z cares about the environment and climate change more than any other generation. Even though an overwhelming percentage of them know this branding is usually a BS marketing gimmick, it still shows in their spending habits.

When our survey asked why people cut back on their everyday spending, 39% said it was due to lifestyle changes including environmental/sustainability concerns — way more than any other generation. Hand-in-hand with this is perhaps the one thing that unites Gen Z: “prioritizing experiences over material possessions.”

Between Savvy Savers, Treat Yoselfers, Travelers and Thunbergs, the common thread is a desire for rewarding experiences, not money in the bank for its own sake. It’s what the Savers are saving for, how the Thunbergs want to live their lives, and what the other two spend on most. So far, our topsy-turvy economy has yet to dash that dream — even if it’s made Gen Z splinter on how to achieve it.

Best,

Michael Hershfield

Founder & CEO, Accrue Savings

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