A staggering 40% of Gen Zers plan to splurge more on non-essentials this year. Is it time for a reality check?
As Trump’s trade policies continue to send shockwaves through the economy — creating fears of rising prices, layoffs and a potential recession — investors are bracing for impact. With markets in flux and uncertainty in the air, financial anxiety is mounting.
While no one can control the stock market, The Washington Post’s personal finance columnist Michelle Singletary says there’s one thing people can take charge of: their spending. But according to new data, Generation Z isn’t exactly slamming the brakes.
In fact, 40% of Gen Zers plan to spend more on non-essential purchases in 2025 compared to last year, according to Northwestern Mutual’s latest Planning & Progress Study — earning the title “Spend Z.” Their intention to spend outpaces every other generation and persists despite credit card bills (22%) and personal education loans (16%) being their main sources of outstanding debt.
While many in this position might choose to cut back on non-essential spending, Gen Z as a whole doesn’t seem to want to make any sacrifices. On a recent episode of the Post Reports podcast, Singletary didn’t mince words when offering advice to young adults navigating these choppy waters: “You have to put your adult hat on and say, ‘You know what? I wish I could eat out, but I can’t.’”
That may be easier said than done in an age where Uber Eats orders and late-night Shein scrolls feel like self-care rituals. But experts warn that trading savings for short-term splurges could leave young consumers vulnerable — especially with the economy on shaky ground.
There’s a good chance you may have found yourself uttering the phrase, “I really shouldn’t be spending this much” — mid trip to the mall with an oat milk latte in hand. But despite headlines warning of an economic slowdown and the not-so-soft whisper of a recession, a growing number of young adults are choosing indulgences over budgets.
According to a 2023 Morning Consult report, Gen Zers and millennials are spending more than $400 a month on non-essential purchases like travel, recreation and dining out. That’s significantly higher than the $250 Gen Xers spend and double the nearly $200 boomer benchmark.
