When it comes to Gen Z, the generation continues to surprise retailers with their general attitude towards money, spending, and debt. A new report by Cash App titled “2024 Gen Z Money Manners Report” explores this generation’s consumer behavior sentiment towards summer spending, wedding-related expenses, and more.
The study, conducted by DKC Analytics, surveyed 1,000 Americans between the ages of 16 and 26 and found that money remains a tight situation for Gen Z.
53% of Gen Z surveyed said they have spent more than they earned. Additionally, 79% of those surveyed said they have some regrets about overspending last summer, with dining out being the most common reason cited by 42%.
As WWD previously reported, Gen Z continues to experience friendship losses due to money, with 73% of the generation reporting at least one bad experience with sharing expenses with a friend. Additionally, 80% of Gen Z said it makes them feel stressed about going on vacation with friends.
Additionally, 42 percent of survey respondents said they’ve argued over splitting expenses, and 21 percent said they’ve struggled to pay because of splitting expenses with friends. However, 39 percent said calculating the exact bill is their preferred method when going to a restaurant or bar. And notably, 43 percent said they wouldn’t be comfortable splitting the bill equally if one person orders significantly more.
“Gen Z grew up in an era of clear communication and clear boundaries,” Lindsay Bryan-Podvin, a financial therapist at Cash App, told WWD, “and this is reflected in their relationships with money and friends.”
Excessive spending on weddings, related activities, and travel is also a major source of stress, with 40% of Gen Zers feeling that “it’s inappropriate to ask attendees to foot the bill for large amounts that may be beyond their financial means.” Brian Podvin points out that Gen Z is a value-driven, empathetic generation that tends to challenge the status quo assumption that their friends should “give up” and spend or go into debt beyond their means for a major life event like a wedding.
“Generation Z is in a transitional period in their lives, navigating the early stages of their careers, competing with financial demands like weddings and vacations with friends, and struggling to cope financially while still wanting to enjoy life,” Brian Podvin concludes. “Anecdotally, they seem to split into two categories: those who feel they can’t recover from financial overspending and continue to overspend, and those who are overcorrecting and saying ‘no’ to expensive trips more frequently.”
