Save, splurge, (don't) stress: How Gen Z is putting their spin on personal finances

Young adults are big spenders and big savers. And even with economic uncertainty and stress, the Gen Z generation is not paralyzed by money decisions.

A vast majority (89%) of Gen Z — or people born between 1997 and 2012 — said they have saved money on something in 2023, more than any other generation, according to a Harris Poll conducted in May. Yet they're also not shy about splurging on items. Seventy-five percent of Gen Z said they spent a lot on something in 2023, also more than other age groups.

Many graduated high school or college during the COVID-19 pandemic, a time when Americans who were separated from family or co-workers had time and space to think more deeply about what they valued most. At the same time, soaring inflation over the past 2 1/2 years has forced Americans of all ages to scrimp and save.

Gen Z adults, who range in age from 18 to 26, have been deeply affected by both phenomena. They're more likely to buy less of something if it doesn't matter to them and to splurge on the things they say matter most, like luxury pet food and ski equipment.

Gloria John, a 21-year-old health screening coordinator in San Antonio, Texas, said she will shell out as much as needed to see indie pop singer Lana Del Rey live but stops buying certain makeup items if the price rises just slightly.

“I will be so cheap with certain things, where I’m not even willing to spend an extra dollar," she said in an interview with USA TODAY. "But then there’s other things that I’m very willing to put money into because I think it’s worth it."

Overall, while a majority of people in Gen Z feel good about managing their bills each month (73%) that doesn't automatically translate into feelings of long-term security, according to a more recent Harris Poll conducted exclusively for USA TODAY in late August. That survey revealed two-thirds (67%) of Gen Z doubt they will feel financially secure anytime soon. And 60% fear they are one financial emergency away from being completely underwater.

"There is a little bit of stress there," John of San Antonio said. "But because there’s stress, I feel like I’m pretty good at cutting back where I can."

The thrifty generation

To lower costs, some unfussy Gen Z shoppers consider thrifted, or used, clothing to be "new" because it's new to them.

“If I buy new things they’re from thrift stores," said Bella Longerbeam, a 23-year-old graduate student and bartender in Seattle. As a result, most of the clothes in her closet are thrifted, and she doesn't buy new apparel from places like Target or Urban Outfitters, she said.

At a Goodwill store in Raleigh, North Carolina, 21-year-old Patrick Macalintal was combing through the entire men's section on a recent Friday in a hunt for pieces made in Italy.

“I’d like to say I’m pretty good with my money," said Macalintal, an intensive care unit nurse.

Besides shopping for fancy used clothes, Macalintal said he cooks at home as much as possible, spends time in nature to save on leisure activities, and has an apartment close to work to cut down on gas costs. He also meticulously cleans his tennis shoes with toothpaste and a toothbrush to keep them looking like new. Pointing to the New Balance sneakers on his feet, he said he's been wearing them since 2018.

Everything in moderation

Gen Z consumers said they'd rather buy less of something, like alcohol and gasoline, than spend too much. In 2023, 36% of Gen Z respondents opted out of social events in order to save, especially when travel was part of the cost, according to the Harris Poll taken in May.

Jacob Mata, a political field organizer in San Francisco, said he doesn't let himself have more than one drink at a bar any time he goes out. That way, he can drive himself home.

"I know that an Uber ride would be just like, robbing me," Mata, 25, said.

Even though he has a car, Mata typically combines public transportation with walking and riding his bike.

More than any other generation, Gen Z also spends in a way that reflects "eco-conscious values" that align with "budget-conscious values," said Libby Rodney, chief strategy officer at Harris Poll.

Get that discount

Gen Z shoppers are savvy about how they cut back, applying online codes and sorting through coupons to lower the cost of full-price items, Rodney said.

This summer, when John was shopping for a dress to wear to a wedding, she wasn't satisfied with finding the perfect look at an online retailer. She needed to get the price down too, she said.

So she turned to TikTok and searched "coupon code" and the name of the retailer.

“I tried as many as I could until I found one that worked," she said, and got 15% off.

Longerbeam is just as strategic.

When she recently went shopping for a new pair of black boots, she visited an online store that often has sales. After she put the black boots in her cart, she waited and refreshed, and waited and refreshed some more. Soon enough, the boots went on sale and she got them at a discount, she said.

Big purchases don't cause stress

While it may seem paradoxical, it makes perfect sense that Gen Z shoppers are both savers and spenders, Rodney said, noting that pinching pennies on necessities allows them to splurge on luxury items.

John uses the cash she saves on makeup and other staples to buy her concert tickets. As she completed the online check-out process for the Del Rey concert seats, she "didn’t even think about how much it was going to cost," she said.

The 75% of Gen Z who spent freely in 2023 were most likely to do so on luxury fashion items, high-quality home goods, or luxury beauty or skincare products, the Harris Poll in May found.

And don't forget pets.

“My cats are my children," Mata said. “For them, I’m willing to splurge.”

Every meal, Mata's cats Blue, Piper and Gwen get to eat human-quality raw meats that cost him $100 per month.

In his apartment, Mata also has five cat trees, four stainless steel litter boxes, and four travel carriers. This summer, he is preparing to purchase a cat stroller so that he can take them on walks, he said.

Gen Z has their eyes on the future

For Mata, feeding his cats raw, healthy food instead of kibble is a long-term investment because the special diet could help prevent the animals from getting kidney disease later in life, leading to expensive vet bills, he said.

“At the end of the day, it’s going to give me the best results," he said.

Macalintal said he'll keep thrifting for Italian menswear and taking items to the tailor. With the money he saves, he's seen Broadway productions of The Lion King, Wicked, Peter Pan and Miss Saigon.

"It doesn't have to be that deep," he said. "Sometimes it's just nice to relax and be taken on a journey."

Learn more about each generation

• What years are Gen X? Find out
• What makes a millennial? Find out
• Is Zillenial a real thing? Find out
• What years are Baby Boomers? Find out