Generation Z was raised on the internet and spends a significant amount of time using phones, tablets and other mobile devices to connect with friends as well as brands and influencers. They have high expectations for the appearance, functionality and security of the online stores they shop at.
America has another 110m of these Gen Zs and millennials, a third of the population. The annual spending of households headed by American Gen Zs and millennials hit $2.7trn in 2021, around 30% of the total. A good place to start dissecting the psyche of young consumer is to consider the economy that has moulded them.
Gen Z consumers are more likely to buy sustainable, high-quality, products. 73% of Generation Z consumers are willing to pay 10% more for sustainable products, according to a report from First Insight. They value personalised products and are often drawn to brands that share their point of view on political issues.
The data found that stocks (60%) were the most common investment type for Gen Z, and when looking at types, growth stocks (59%) and value stocks (57%) tended to be their preferred type of stocks.
According to a recent survey of Gen Z's shopping habits, the top products consumers in this age group (defined as those aged 18 to 24) purchase online are those in the clothing and shoes category. As many as 65% of Gen Z shoppers—or close to two in three—say they get these items over the internet.
Increasing income was the most completed financial goal in 2022. 45.1% of Gen Zers have a homeownership-related goal for 2023. 42.6% of Gen Zers have spent more than they earned. 69.1% are currently saving money.
Gen Z Most Likely to Use BNPL
According to Investopedia, Gen Z digital buyers were the most likely to use Buy Now Pay Later (BNPL). It is said that nearly 60% used this type of payment service, over credit cards.
They prefer to shop directly from brands.
Gen Z is known to favor eco-friendly products from sustainable brands, and, as consumers, they're more likely to abandon a purchase from brands that don't meet their ethical standards.
Nearly 3 in 4 Gen Zers say they would rather have a better quality of life than extra money in the bank. In fact, experiences matter more than money to Gen Z, as 66% say they are only interested in finances as a means to support their current interests.
The careers of their parents' generation are no longer necessarily stable options, so they instead often look to their peers, who are innovating new pathways through experimental side hustles, amplified on digital platforms.” The versatility that side hustles provide are also key to Gen Z.
According to a study from Credit Karma, Generation Z, which is defined as people born between 1997 and 2012, accumulated a higher percentage of debt at the end of 2022. The study shows that Generation Z had, on average, $15,796 of debt between March and May of 2022.
The graph pins down just how much money Americans spend each year, based on 2021 figures. Far and away, Generation X (Americans born between 1965 and 1980) spent the most of any U.S. demographic that year, cracking open their wallets to the tune of $83,357.
Additionally, she said that Gen Z spends a lot on electronics, technology and health/wellness, while millennials prioritize spending on travel and experiences. Further, Gen Z is more likely to shop secondhand and resell items. They also have less credit card debt than any other generation.
The average salary that young adults said would make them feel as if they've finally “made it” is $121,553 per year, with Gen Z aiming slightly higher and pining for $124,494 and millennials earmarking $120,902.
Gen Z loves free stuff. Who doesn't? But it goes deeper than our inherent desire to enjoy free product. This is not an open endorsement to give away your product 100% of the time either.
Gen Z. The youngest and lowest-giving generation on the list is Generation Z. These teenagers and young adults give $341/year on average, and 44% of all Gen Zers donate to charity.
Older millennials are racking up more debt than any other generation, data shows. Here's why.
According to data on 78.2 million Credit Karma members, members of Generation X (ages 43 to 58) carry the highest average total debt — $61,036.
Baby boomers have the highest household net worth of any US generation. Defined by the Federal Reserve as being born between 1946 and 1964 (currently in the ages between 59 and 77), baby boomers are in often in the sunset of their career or early into retirement.
Gen Z consumers are starting to buy luxury goods — everything from designer handbags and shoes, to watches, jewelry, apparel and beauty products — at age 15, three to five years earlier than millennials did, the report said.
Gen Z and millennials are also more likely to seek luxury items than previous generations. “Higher spending is kind of ingrained in the way that they think. They view higher cost items and luxury items as investment pieces,” says Phillips.
You'll find that they are quite different from the previous generations. Gen Z prioritises positive relationships, work-life balance, schedule flexibility, and job stability. 90% of them want human interaction at work and direct communication from their co-workers.