Forbes once called Gen Z the biggest online spending power in history. With their purchasing power expected to increase to 12 trillion by 2030, it is no surprise that Gen Z is a huge and powerful market force. On the other hand, Gen Z also marks the generation with more consumer debt than any other generation.
As a certified early Gen Z myself (2001, baby), I can’t say I was shocked to hear that the average member of this generation has over $90,000 in debt. I’m not even a stranger to this myself, having faced both credit card debt and student loans. We are not exactly known for our financial wisdom.
And while part of this has to do with out of control inflation and rising housing costs, some of it also has to do with what we are spending (or wasting) our money on. We have been making efforts to try and control our spending in certain areas, but still fall short in quite a few areas.
1. Food Delivery & Takeout
Gen Z spends more money on takeout and delivery services than any other generation. Some studies report that around 69% of young adults spend money on delivery or takeout on a consistent weekly basis.
And this isn’t just about restaurant service, apps like Doordash and UberEATS can tack on an extra 91% in fees compared to picking up.
Don’t get me wrong, either - I get it. Cooking sucks sometimes, especially if you live on your own. It can be a lot more convenient to just order takeout when you are burnt out.
But even with these services often inflating prices, some countries are still seeing their young population spend over $4,000 a year on food delivery. It might be a smarter idea to maybe try food prepping, or even learning how to make your favorite takeout dish at home.
2. Self Care and Beauty Products
Who doesn’t love a good face moisturizer? I know I do.
One study found that 58% of Gen Z spends their money on beauty products (including makeup), which is more than any other generation. The same study reported that of the 38% of consumers that cherish their self care and beauty routines, 47% of that is made up of Gen Z buyers.
But over time I have had to force myself to realize that a lot of the ingredients in the expensive brands are chemically similar to the brands that cost more. I used to be someone that would easily shell out way too much money for a product I probably could go without.
3. Fast Fashion Hauls
This is one category that I am very against. With the amount of clothing waste we create each year, fast fashion and the haul trends that come about from them are only making the problem worse. Brands like Shein, Temu and FashionNova feed off Gen Z’s desire to have more for less.
And the strange thing is, Gen Z is aware of the environmental issues being created by these brands. Yet, they continue to be the biggest consumer base buying these brands.
The answer to this one is simple: stop buying fast fashion.
I can almost guarantee that you have something to wear for 99.9% of occasions, and there is never a need to overconsume clothing for things like vacations. And if not? Go thrifting! Go spend your hard earned money on clothing that is made from good quality and sustainable materials, not poorly-sewn polyester made with child labor.
4. Trends
Here, I am specifically talking about the items that we see on TikTok or Facebook and go out of our way to buy because they are trendy. This is a really subjective category, but it irks my mind every time I see what is very much an undisclosed paid advertisement selling me the next random thing I don’t need (Seriously, what the f*ck is a labubu?)
I fear that I may be alone in feeling this way.
It’s not even that surprising considering these apps are socially engineered to get the most clicks. With Gen Z being the generation that grew up with technology, we are almost unable to resist their tactics.
5. Impulse Buying (I’m looking at you, TikTok Shop)
Bouncing off the last point, impulse buying platforms such as the TikTok Shop do nothing but exacerbate Gen Z’s spending problem.
Gen Z also leads in this category once again, with one study by Klarna finding that about 75% of Gen Z’ers have bought something on a whim. So-called “social shopping” is only growing as platforms continue to copy the TikTok shop.
Everything seems to be an advertisement nowadays.
Gen Z is currently surviving in a world that’s financially unstable and digitally addictive. With everything being so emotionally draining, our finances only reflect that. But there comes a point where we need to be honest with ourselves and realize that some of our spending habits may be hurting us more than they are helping.
This article was written by Haley Marie Salgado for Cash Flow Diaries.
Comments
Post a Comment