The Expected Spending Habits Of Generation Z

Generation Z-ers are those born between 1995 and 2010. This demographic is known as Gen Z and by all accounts are supposed to break the mould. Whilst millennials and baby boomers might be getting all the attention for their hard-and-fast or black-and-white opinions, Gen Z might just be the collective that challenges it all – doesn’t that sound exciting. How are Gen Z going to fight the system? Their spending habits say it all, we’re taking a look below:

Financial Security

History suggests we either learn from our parents’ mistakes or are destined to repeat them. Gen Z were the generation born to experience the credit crunch of 2008.

This catastrophic financial disaster could have shaped the lives of the Gen Zs. As a result, it is expected that Generation Z might be the most responsible generation with money yet. Their early experience might have taught them extreme care and reports suggest they will favour long-term investments and safe purchases. This includes home owning rather than renting but also money available in the bank and easy access to emergency funds.

Financial security is considered to be achieved through job security and it is expected that Generation Z are likely to be on the hunt for sustainable and safe employment. It is anticipated that jobs with the most security are likely to become the most competitive. Industries include software engineering and web development, mechanics and engineering, medicine.

Education & Learning Materials

Pegged as the ‘work hard, play hard’ generation, Gen Z might not fear a little competition. They will always have been raised to be aware that there is a population problem and more people competing than there are jobs available. The millennial generation have carved out the need to constantly be relevant. Gen Z have adapted this and acknowledge they need to continuously develop skills to stay competitive. This suggest that they will be willing to fund educational experiences. This does not necessarily mean formal higher education but single day learning courses and at-home education. Incidentally, Gen Z are 55% more likely to want to start a business than millennials.

Competitive Spending

Their cautious spending habits coupled with innate competitiveness suggest that Generation Z are going to be bargain hunters. It is not yet distinguished whether Gen Zers value branded goods, studies only show that they rate well-known brands for employment. However, US studies highlight that Gen Z are going to love a bargain. This could be them trying to save money on branded goods, and the rise of biddable clothing apps (DePop and ThredUp) certainly does support this. Alternatively, they could just be out and out bargain hunters, spending more time in low-cost shops and online marketplaces.

Currently, millennials are distinguishing themselves by their preference for experiences rather than material goods. Material items do not hold the same value as they once did, and millennials are more likely to brag about the best destination they’ve been to or the best concert as opposed to the model of car they own or how much their wardrobe cost. Perhaps Generation Z are learning from their forebearers and trying to have it all; they are demanding merchandise at low prices so they can explore experiences and still have a nest egg for financial security. This could spread them very thin and leave little in their current accounts, but only time will truly tell.


Technology is also changing the way Generation Z shop for the items they do want to buy. We know that YouTube content (Gen Z’s favourite social media platform) influences shopping as unboxing and product review content performs extremely well and helps the demographic keep apprised of the latest trends. This does also suggest that Gen Z are likely to spend more time researching a product before they commit to buying it.

Generation Z certainly prefer mobile technology as opposed to static and restrictive devices. Smart phones are the favoured device for Gen Zers, with the average person spending 15 – 24 hours on their phone per week. 2017 reports also highlight the increase in mobile or handheld device shopping. This is in line with the increased screen size of handheld devices or smartphones such as the iPhone + models. Improved technology affords Generation Z the freedom they are supposedly on the hunt for and suggests they are more likely to shop on the move.

Sustainable, Eco-Friendly Decisions

A US study highlights that 29% of Gen Z consumers find a product more appealing if it has the word ‘vegan’ attached to it. As a society, we are becoming more aware of our carbon footprint and our impact on the world around us. Generation Z are the first group to be raised and educated about this. Products that could be more appealing if they are more animal and eco-friendly include:

  • Non-leather apparel
  • Synthetic garments
  • Cruelty free cosmetics
  • Pet-safe household goods
  • Food products

As we become more aware of the impact of fast fashion, sustainable fashion brands are coming up trumps, too! Brands such as Reformation are even targeting younger generations and Generation Z consumers with their marketing strategy. Youngsters are definitely the driving force behind eco-fashion and although new affordable brands are popping up onto the market, at the moment, sustainable fashion is costly, but it doesn’t seem to be deterring Gen Z shoppers.

At Wizzcash, we are thrilled that Generation Z are pegged to be the best and most responsible generation with money yet. We hope this means they never enter financial struggles; sometimes, financial emergencies cannot be planned for. In these situations, Wizzcash may be able to help.We supply payday loans on a short term basis for financial emergencies only. Find out more or contact Wizzcash about our company and lending criteria.