What are the top 3 categories that Gen Z spends its money on? (2024)

What are the top 3 categories that Gen Z spends its money on?

Gen Z spending habits show they care the most about fashion, makeup and beauty products, technology, and their pets. This is perhaps due to their young age and few major bills.

What are the 3 categories that Gen Z spends its money on?

What do Gen Z spend the most money on?

Gen-Z spending big on entertainment

Not much has changed with Gen Z as they're currently clocked with 90% putting money towards entertainment monthly and a 2% increase in those spending over $300 each month.

What are the top 3 types of products Gen Z is most likely to splurge on?

Key takeaways from the report include where Gen Z consumers are likely to splurge, with most revealing that they spend primarily on products within the clothing, makeup and skin care categories. Areas where they tend to save include shoes, jewelry and handbags/accessories.

What types of purchases does Gen Z make?

What is the Gen Z category?

In a 2022 report, the U.S. Census designates Generation Z as "the youngest generation with adult members (born 1997 to 2013)."

What do Gen Z spend their entertainment money on?

Generally, the younger generations have similar spending habits. They spend more on eating out, traveling and experiences such as concerts, streaming services, online shopping, retirement savings, and brands that promise to be kind to the environment, according to the Pew Research Center.

What is Gen Z spending power?

As Gen Z grow up, their dollars matter more and more in the global economy. This generation, born between 1997 and 2012, represents an estimated $450bn (£353bn) in spending power across the world – with $360bn (£282bn) in the US alone, according to some estimates.

Does Gen Z like spending money?

The youngest adult generation has relied on 'little treat culture' to get through the day. Now, they're found ways to buy much bigger treats, even with inflation. Young adults are big spenders and big savers. And even with economic uncertainty and stress, the Gen Z generation is not paralyzed by money decisions.

What does Gen Z splurge on?

McKinsey's latest ConsumerWise research finds that Gen Z consumers in the United States say beauty products are among the categories they intend to splurge on most in the next three months (behind only groceries and tied with apparel).

What are the top three reasons that Gen Z buys secondhand items?

The top three reasons Gen Z are buying used clothing is to save money, to be more sustainable, and to have more fun shopping, the report said.

What is the #1 spending category across all generations?

While spending habits vary depending on the age group, there are some categories that remain fairly consistent across the board. One of the most consistent spending categories is housing—it's by the far the biggest expense for all age groups, accounting for more than 30% of total annual spending for every generation.

What Gen Z likes the most?

Despite being the most online generation, Gen Z likes shopping in-store. They also like having real shop assistants to help them with queries. Gen Z'ers have high expectations as consumers, both in terms of customer service and product quality.

What attracts Gen Z the most?

Gen Zers are known for their social responsibility, dedication to social and political issues, and their demand for authenticity when it comes to brands and advertising. 53% of US Gen Zers want brands they shop at to support mental health, more than any other cause, according to a survey from ICSC and Big Village.

What's the #1 way Gen Z is different from Millennials?

Generation Z are different from Millennials because they grew up with social media and the internet. Generation Z were born between 1996 and 2010. According to some studies, they're more likely to work independently. There's a rise in entrepreneurial aspirations when it comes to Generation Z.

What products do Gen Z prefer?

According to Klarna, the products that Gen Z shoppers spend on the most are clothing and shoes, groceries, beauty products, electronics, entertainment, pharmaceuticals, home and garden accessories, and automobile parts or accessories, among others.

How is Gen Z with money?

More than half of Gen Z, 56%, do not have enough emergency savings to cover three months' worth of expenses, Bank of America's survey found. It's a good idea to sock away any extra cash you can, said Boneparth, and to think about what's important to you to stay motivated.

What do Gen Z buy the most online?

Gen Z online shopping data reveals that fashion and electronics rank among the most frequently purchased categories. Still, their participation in these segments remains lower than millennials and Gen X.

How old is the oldest Gen Z?

Why does Gen Z look older than Millennials?

Those seeking to cast blame have tried to pin Gen Z's supposedly accelerated maturation on vaping, makeup, cancel culture or karma. Some have suggested the anti-aging products and procedures used by Gen Z-ers have, ironically, made them look older.

What is Gen Z called now?

Generational definitions are most useful when they span a set age range and so allow meaningful comparisons across generations. That is why the generations today each span 15 years with Generation Y (Millennials) born from 1980 to 1994; Generation Z from 1995 to 2009 and Generation Alpha from 2010 to 2024.

Where do Gen Z invest their money?

“Close to six in ten, (56 percent) of U.S. Gen Zs ages 18 to 25 report owning at least some investments. Two in ten (19 percent) are currently invested in cryptocurrency and/or non-fungible tokens (NFTs) only.” Even more impressive, 25% of U.S. Gen Z investors began investing before they were 18.

What motivates Gen Z to buy?

Gen Z is not just interested in buying a product to own it – they're also motivated to buy items to create social media content around it. Zoomers go above and beyond to get in on these kinds of trends.

How do Gen Z spend their free time?

However, some common hobbies among Gen Z individuals include technology and social media usage, gaming, and streaming content. Additionally, many Gen Zers are interested in fashion, beauty, and self-expression through social media platforms like TikTok and Instagram.

What are the spending priorities of Gen Z?

Gen Z shoppers prioritize Health and wellness, lean brands, technology, education, and Sales. Gen Z is less likely to splurge on luxury products or brands.