In Our Investment Era
The Gen Z philosophy on what’s actually worth the splurge 💸
Last week’s Reality Check with The Up and Up’s Gen Z community revealed more than just cultural takeaways about ‘red flag summer.’ It showed a shift in the way young adults are spending. Rooted in rising economic anxiety, young people want experiences with lasting value. This is an evolution from the ‘feel-good economy’ that I wrote about in May.
While viral marketing led to some one-off spending this summer, on the whole, the young adults I heard from are bringing an investment mindset to their purchases, buying things with a lifespan: trips with friends, technology for their college dorm rooms, and jewelry to wear on repeat.
Beyond the basics of what they splurged on (shared below), I asked The Up and Up Community how their daily spending habits have changed this summer. Aware of rising prices, young people are cutting back on solo indulgences (like takeout) and instead, they’re putting money into moments that feel memorable or meaningful, especially ones shared with friends.
I heard from nearly 40 young adults ages 17-31 in 18 states and Washington, D.C.
Here’s what they had to say.
Have your spending habits changed at all this summer? If so, how?
Everything feels so much more expensive
Yes, walk everywhere!!
Less takeout
Spending on events
Spent more on dinners and drinks out
Spending more, working more
Buying less food out of home
Spend so much more
Want to spend on myself to treat myself, redefining important expenditures like food or drinks
Spending way more
Making more money this summer and putting it all in my savings expect for a little, so I have to transfer money if I want to buy something
I've spent more money socially than I do during the school year because of more free time spent with friends. Also, I'm making more money currently than I do during the school year because I am working 3 jobs, which I don't typically have time for with my school work
Yes, I am saving more money and sticking to a budget
They have definitely gotten worse but, you only are this young one time so live while you can
There’s a feeling that spending is required to have fun, evident in that last comment.
“You only are this young one time so live while you can,” a 21-year-old from Virginia said, justifying spending more money.
What’s been your biggest $ splurge of the summer?
$1,300 plane ticket
Vacation to Asia with my best friends
I am considering buying a TV for college
Disney annual passes! $900 for myself and $900 for my wife
Pretty soon, it’s gonna be a new PC to replace my college laptop
Splurged a decent amount on fishing gear
Trip to NYC for flights, meals, etc was about $300 — but, I still was able to be cost effective with cheap flights, budget food, and lucky to have a friend to stay with there
$375 David Yurman ring
Trip to London
Trip to the Hamptons over Memorial Day weekend - probably spent close to $1,000 all in after house, food, alcohol
Silver is back, $300 David Yurman used cuff bracelet
Vacay experiences!! $100 put in to a group fishing trip on a charter boat and of course $300 on round trip airplane tickets
Planning my trip to Ibiza! My flight and hotel
About $300 for a smart watch
Apartment / watch
$750 for a wedding dress
Alcohol, unfortunately, and food really I rarely go out it’s just lake days and late nights
All my friends turned 21 late last year so whenever we go out they want to drink
From big trips with friends to investment purchases like jewelry and watches, there’s a clear theme: young people are spending on pleasure beyond one singular moment.
The takeaway: The quick-fix, little-treat economy is fading. Strapped for cash and searching for meaning, young adults are prioritizing spending to make memories.
Noteworthy reads
Stop Complaining About Gen Z Workers – and Start Helping Them, Susan Lucia Annunzio for The Wall Street Journal
What does Gen Z want from jewelry?, Amy Francombe for Vogue Business
Broadway Isn't Overpriced, It's Undervalued: New Study Finds Gen Z & Millennials Will Spend More Than Triple When They See What's Behind the Curtain, No Guarantees Productions, PR Newswire
Gen Z's broken school-to-work pipeline, Erica Pandey for Axios
Gen Z professionals are flocking to this unexpected Midwest hub instead of big cities, Joshua Nelson for Fox Business
I wonder if this 'search for meaning' (and the resulting focus on making memories) isn’t just something natural. The Gen Z is getting older (it happens to all of us), and with that comes a desire to spend money in more meaningful ways. Maybe it isn't something specific (it just 'adulting')