Gen Z is reversing the script when it comes to finances. This generation isn’t just copying millennial hacks or boomer tricks; they’ve developed budgeting habits that feel weird on the surface—but the deeper you go, the more sense they make.
A survey of 10,000 people in the UK by British bank NatWest found that 69% of Gen Z respondents set a budget, compared to just 42% of Baby Boomers.
With economic uncertainty looming over their heads and inflation being the third wheel on every date, Gen Z has discovered unique ways to stretch a dollar but still live their best life. Here’s a peek at some of their best quirky and practical budgeting practices.
Spending on Quality, not Quantity
Gen Z won’t shell out cheap to save money in the short term. Instead, they spend on long-lasting, high-quality stuff that will endure. A First Insight survey reported that 62% of Gen Z would choose quality over quantity shopping.
Instead of buying three $10 T-shirts, they’ll opt for a sustainable brand’s one $40 tee that won’t disintegrate after just two wearings.
Streaming Together
Call it “streamtwinning.” Gen Z loves collaboration, especially when it comes to monthly subscriptions. Watch parties come with shared costs as friends and family split their Netflix, Disney+, and Spotify bills.
According to Bloomberg, 39% of consumers share their streaming service logins, with the majority being Gen Z.
Thrifting is Thrilling
Why spend more on fast fashion when thrift stores offer better items at much lower costs? Thrift stores and sites such as Depop are a Gen Z playground. A Statista report indicates that the secondhand market is expected to expand by 127% by 2026, driven primarily by Gen Z shoppers.
Secondhand shopping is also a planet-friendly choice, making it an environmentally responsible option.
Cash-Stuffing Their Way to Savings
Who would have thought Mom’s vintage cash envelopes would make a comeback? Gen Z is making it happen with “cash stuffing,” a budgeting technique that involves holding onto actual cash for specific purposes (groceries, entertainment, bills).
Budgeting expert Rachel Cruze considers it a simple yet great way to remain in command of your spending.”
Side Hustle Nation
One gig for Gen Z is never enough. They switch between steady gigs, freelancing on websites such as Fiverr, and selling artisanal goods on Etsy. A staggering 55% of Gen Z work freelance, according to Upwork.
Their hustler attitude generates multiple streams of income and shields them from economic fluctuations.
Ditching the Car Life
Skip car loans, gas, and insurance. Gen Z uses Uber, Lyft, or the city’s public transportation, saving thousands of dollars a year. A report by Deloitte revealed that 47% of Gen Z believe owning a car is a must, compared to 77% of baby boomers.
Loyalty Programs Are Their Besties
No rewards program? No thanks. Gen Z is drawn to brand loyalty programs for discounts, cash back, and freebies. McKinsey found that 72% of Gen Z participants are happy to engage in such programs when the rewards are genuine.
Those few points from their coffee shop add up!
TikTok as a Financial Guru
Financial literacy TikTok (#FinTok) is shaping Gen Z’s shopping behavior. YouTubers and influencers dissect budgeting apps, paying off debt, and saving strategies into bite-sized, entertaining morsels of information.
More than 2.3 billion times, #BudgetHack has been watched, and valuable tips have gone viral.
Mutual Support Instead of Loans
Borrow money from a bank? No, Gen Z will likely turn to community-based mutual aid funds, which pay no interest or profit motivations. The Pew Research Center reports this trend as an indicator of their solid belief in collective responsibility and grassroots action.
Grocery Hacks Are an Art Form
Why go shopping without a grocery list when TikTok offers meal-planning challenges that maximize fresh ingredients for minimal cost? Chef and food influencer Carla Lalli Music says, “Gen Z’s focus isn’t just saving but doing so with clever, nutritious meal solutions.”
Financial Apps? Yes, Please
Gen Z loves apps such as Mint, You Need a Budget (YNAB), and Acorns. The apps make saving money or investing spare change a game. Insider Intelligence reports that 77% of Gen Z consumers use financial or fintech apps every week.
DIY Everything
Home decor, skincare, fashion tailoring, name one. Gen Z learns it all online and does it all by themselves to save on professional fees. Homemade oat milk soap is not only more affordable but also more fulfilling and visually appealing, making it an excellent choice for Instagram-worthy products.
Meme Investing
Stocks boring? Crypto too complex? Meme stocks align with Gen Z via platforms like Reddit’s r/WallStreetBets. A Bankrate analyst notes, “While risky, these investments resonate with their hunger for participation and community.”
Safe? Maybe not always. Strategic? As memes continue to profit them, yes.
Key Takeaways
These are the habits that verify the youngest workforce generation is rewriting the book on financial success. They combine creativity and planning to achieve economic success, from splitting bills to avoiding unnecessary purchases.
Start incorporating these unique habits in your life and see the difference.
Disclaimer: This list is solely the author’s opinion based on research and publicly available information. It is not intended to be professional advice.
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I’ve discovered seven practical strategies anyone can use to save on international money transfers. Whether you’re sending a hundred dollars to a family member or paying for a service in a foreign country, these tactics will help you hold onto more of your hard-earned cash.
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Do you have a kitchen hack we should know about?
