With the cost of living on the rise and saving money seeming more challenging than ever, how do today’s young people manage their spending and saving? We conducted a survey around Gen Z financial habits to see what this group is spending money on, how much they’re saving, and what their biggest money worries are.
Generation Z is the name given to people born between 1997 and 2012. According to the latest census data, Gen Z makes up 20% of the U.S. population with over 67 million people in this age group.
This makes them the third-largest generation group in the U.S., following millennials (21.93%) and baby boomers (21.45%). [1] Statista - U.S. Population By Generation https://www.statista.com/statistics/797321/us-population-by-generation/
Of our survey respondents, over three-quarters (76.3%) in the Gen Z age group were employed full-time. Those who had a part-time job made up 12.4% of the group, while 3.8% were in college and 2.3% were in school. The least common occupation was a freelance job, with just 2.2% of the group selecting this as their occupation.
| Occupation | % |
|---|---|
| College | 3.79 |
| Freelance job | 2.19 |
| Full-time job | 76.27 |
| Part-time job | 12.36 |
| School | 2.29 |
| Unemployed | 3.09 |
As well as asking about their main occupation, we also asked our respondents whether they had a side hustle, defined as an extra source of income outside of their main occupation. A huge majority (81.9%) of Gen Z said that they did have a side hustle.
This links back to data from our side hustle study, where we found that 70% of people aged 18-24 were planning on starting a side hustle. We also found that those aged 18-24 were making an average of $533.43 per month from their side jobs, or just over $6,400 a year.
When asked about their current living situation, the most common answer was living at home with parents or family, with 39.4% of the group. However, 43.5% said they rented a property, either on their own, with roommates or with a partner. Only 16% of Gen Z said they owned their own home.
| Current situation | % |
|---|---|
| Live at home with parents or family | 66.90 |
| I rent a property on my own | 35.19 |
| I rent a property with a partner | 29.01 |
| I rent a property with roommates | 9.67 |
| I own my property | 27.12 |
| Other | 1.79 |
With Gen Z being quite a wide-ranging age group, earnings can vary from teenagers who get a weekly or monthly allowance, to those in their mid-20s with a degree and a full-time job. The findings show that Gen Z respondents earned an estimated average of $1,910.39 per month, with an annual average of $22,924.68.
The most common monthly earnings among our respondents were between $501-$1,000 per month, with 29.3% saying they earned this much. However, around half (54.9%) said they earned between $501-$2,500 per month.
| How much Gen Z earns | % |
|---|---|
| $0-$100 | 8.37 |
| $1,001-$2,500 | 25.62 |
| $101-$500 | 11.37 |
| $2,501-$5,000 | 16.85 |
| $501-$1,000 | 29.31 |
| Over $5,000 | 8.47 |
Recent reports suggest that Gen Z has a spending power of an estimated $323 billion. [2] Snapchat - Building Brands with Gen Z https://forbusiness.snapchat.com/blog/building-brands-with-gen-z-kantar But what do people in this age group spend their money on?
With Gen Z’s ages ranging from young teens to mid-20s, there’s a mixture of things they are most likely to spend their money on. Some will get most of their money in the form of an allowance, some might have part-time jobs, and others may work full-time and live in their own home. Let’s take a look at the breakdown of spending.
In the survey, respondents were able to select more than one answer for the things they spend the most money on. From the people we asked, the most common thing they spent their money on was household bills and expenses, and this was closely followed by clothes and accessories.
| Type of spending | Percentage |
|---|---|
| Household bills and expenses | 52.34% |
| Clothes and accessories | 44.07% |
| Going out/entertainment | 37.49% |
| Food delivery/eating out | 36.99% |
| Toys and games | 15.45% |
| Travel | 38.78% |
| Online services | 16.75% |
| Personal care | 17.65% |
| Sports or gym | 11.47% |
| Healthcare products/medication | 13.96% |
| Technology | 11.76% |
| Paying off debt | 8.47% |
| Student loans | 7.78% |
| Other | 2.99% |
When asked how much they typically spend per month on household expenses, the average amount Gen Z said they spent was $613.05, which is $7356.60 per year. Around half (52.6%) said they spent between $51 and $600 on these costs. The most common answer was $101-$300 with 21.1% of the group.
On the highest end of the scale, only 2.9% of our respondents spent over $2,000 per month on household bills and expenses, while 3.8% said they spent nothing at all on these types of costs.
| Money spent on household bills per month | % |
|---|---|
| $0.00 | 3.79 |
| $1 - $50 | 9.17 |
| $51 - $100 | 13.46 |
| $101 - $300 | 21.14 |
| $301 - $600 | 18.05 |
| $601 - $1,000 | 15.25 |
| $1,001 - $1,500 | 11.37 |
| $1,501 - $2,000 | 4.89 |
| $2,000+ | 2.89 |
The estimated average amount Gen Z spent on entertainment was $157.07 per month, amounting to $1,884.84 per year, which includes streaming services, music, gaming and similar products. However, one-fifth (20.4%) of the group said they spent between $21 and $50 on entertainment. Across the group, almost two-thirds (61.3%) said they spent between $1 and $110 on entertainment.
A small percentage (0.8%) said they spent over $1,000 per month on entertainment, with 2.5% saying they spent $700 or more.
| Money spent on entertainment per month | % |
|---|---|
| $0 | 3.99 |
| $1 - $20 | 13.46 |
| $21 - $50 | 20.44 |
| $51 - $80 | 13.86 |
| $81 - $110 | 13.46 |
| $111 - $150 | 11.76 |
| $151 - $200 | 8.28 |
| $201 - $300 | 4.49 |
| $301 - $500 | 5.18 |
| $501 - $700 | 2.59 |
| $701 - $1,000 | 1.69 |
| $1,000+ | 0.80 |
When it came to spending on socializing like eating out or going to a bar or club, the estimated average amount Gen Z spent was $166.75 per month, or just over $2,000 per year.
To break it down, 16.7% of our respondents said they spent between $21 and $50 per month. But across the entire group, over two-thirds (67.5%) spent between $1 and $150 on socializing each month.
| How much Gen Z spend on socializing per month | % |
|---|---|
| $0 | 4.89 |
| $1 - $20 | 10.07 |
| $21 - $50 | 16.75 |
| $51 - $80 | 13.96 |
| $81 - $110 | 13.86 |
| $111 - $150 | 12.76 |
| $151 - $200 | 11.47 |
| $201 - $300 | 6.28 |
| $301 - $500 | 3.59 |
| $501 - $700 | 3.49 |
| $701 - $1,000 | 1.69 |
| $1,000+ | 1.20 |
We asked our survey respondents how much money they typically spend on shopping for clothes, cosmetics, gadgets and similar items each month. The estimated average amount Gen Z spent on these items was $178.11 per month, a yearly sum of $2137.32 per year. The largest proportion of the group (15.9%) said they spent between $51 and $80 a month on shopping for these items.
More than half (54.6%) said that their spending on clothes, cosmetics and gadgets was between $1 and $110 per month. 1.3% of our group even said they spent over $1000 per month on shopping for these items.
| How much Gen Z spend on shopping (clothes, cosmetics, gadgets) | % |
|---|---|
| $0 | 4.89 |
| $1 - $20 | 9.47 |
| $21 - $50 | 14.46 |
| $51 - $80 | 15.85 |
| $81 - $110 | 14.66 |
| $111 - $150 | 11.76 |
| $151 - $200 | 9.57 |
| $201 - $300 | 6.08 |
| $301 - $500 | 6.28 |
| $501 - $700 | 3.49 |
| $701 - $1,000 | 2.19 |
| $1,000+ | 1.30 |
The majority of people in the Gen Z age group said they did most of their shopping online, with more than half of the group (51.5%) saying they mostly shopped online for their clothes, accessories and gadgets.
Making up most of the other half of the group were those who shopped at individual stores (21.8%) and those who mainly shopped at a mall (22.8%), while 4.1% said they mostly shopped at thrift stores. The remaining few respondents gave a mix of answers, stating that it depended on the item or that they used a variety of shopping options.
| Store type | % |
|---|---|
| At individual stores | 21.83 |
| At the mall | 22.23 |
| Online | 51.55 |
| Thrift stores | 4.09 |
| Other | 0.30 |
When looking at Gen Z’s personal finance habits, we asked our survey respondents whether they ever bought products after seeing them on social media. Two-thirds (64.2%) said that they sometimes buy items they have seen on social media, 29% said they did this often, and only 6.8% said they had never bought an item after seeing it on social media.
| How often Gen Z buy items after seeing them on social media | % |
|---|---|
| Never | 6.78 |
| Often | 29.01 |
| Sometimes | 64.21 |
In the U.S., 54% of Gen Z said they thought social platforms were more useful in helping them find out about new products than search engines. [3] Statista - Social Media Product Discovery By Generation https://www.statista.com/statistics/1252639/us-social-media-product-discovery-by-generation/
This was slightly lower compared to 58% of millennials, but much higher than Gen X at 29% and Baby Boomers at 3%.
The results of our survey showed that the estimated average amount Gen Z had in savings was $2,410.57.
Comparing this figure to other generations, Millennials have a median savings amount of $23,000, Gen X have $66,000 and Baby Boomers have a median of $156,000 in savings. [4] How Much Generations Have Saved for Retirement https://money.com/this-chart-shows-how-much-millennials-gen-x-and-baby-boomers-have-saved-for-retirement-see-how-you-compare/
Just under a quarter (24%) of our respondents said they had between $501-$1,000 in savings. This is roughly in line with the amount most Americans have in savings, with statistics showing that 41.5% of Americans have between $0 and $1,000 saved.
At either end of the savings scale, 5.2% of Gen Z said they had no savings at all, and 5.4% said they had over $10,000 saved.
| How much Gen Z has in savings | % |
|---|---|
| $0 | 5.18 |
| $1-100 | 12.96 |
| $1,001-$5,000 | 20.04 |
| $101-$500 | 22.43 |
| $5,001-$10,000 | 9.97 |
| $501-$1,000 | 24.03 |
| Over $10,000 | 5.38 |
As well as asking about their total savings amount, we also asked our respondents whether they set money aside to cover the costs of emergency events. An overwhelming majority (85.3%) said they did save money specifically to use in an emergency.
In a previous study, we found that the average amount a person spends on emergency spending in a period of 12 months is $2,821.84 so it’s a good sign that Gen Zers are already setting money aside to deal with these unexpected costs when they may arise.
When it comes to financial security, this can mean different things depending on your circumstance. In general terms, having financial security or stability can mean you are able to pay your essential bills, you have access to safe housing, healthy foods and other necessities, and you’re able to plan for the future.
The survey asked respondents whether they felt financially stable. Two-thirds (66.2%) of those in the Gen Z age group said they did feel that they had personal financial stability. A quarter (26.8%) said they didn’t have financial security, and 7% said they didn’t know whether they did or not.
With student loan debt on the rise and the cost of living increasing, we looked into how many Gen Zers are in debt, and how much debt they’re in. We also found out how common it is for them to take out a loan, and what kind of things they take loans out for.
Student loan debt is on the rise with the total amount of student debt in the U.S. sitting at $1.75 trillion. In our recent study of student debt statistics, we found that the Millennial generation (age 25-34) had the most student debt, with 14.9 million borrowers, compared to 7.6 million Gen Z borrowers (aged 18-24).
Two-thirds (65.9%) of our Gen Z survey participants said they had student loan debt.
Many people may take out loans to cover unexpected costs, or for things like college tuition and car payments. Three-quarters (76.7%) of those we asked said that they had taken out a loan of some sort.
Participants were asked if they had taken out a loan, what reason they had taken it out for, with the option to select all that applied to them. Not including student loans, the most common thing Gen Z had taken a loan out for was medical costs, with 34.3% saying they used a loan to cover these costs.
This was followed by regular household expenses at 32.5% and home repairs at 29.1%. Some of the less common reasons people had taken a loan out included weddings, Christmas shopping and building credit.
| Reasons Gen Z have taken out a loan | % |
|---|---|
| Medical costs | 34.3 |
| Regular household expenses | 32.5 |
| Home repairs | 29.1 |
| Car repairs | 28.3 |
| Pet emergency | 18.2 |
| Emergency travel | 17.1 |
| Other | 5.4 |
The use of ‘buy now, pay later’ (BNPL) plans has become increasingly popular with online shopping platforms. Shoppers can use these plans to buy items on credit and spread the cost over monthly payments. Some people reported using BNPL plans to avoid credit card debt. [5] Using Buy Now Pay Later Plans https://www.retaildive.com/news/report-80-of-us-shoppers-use-buy-now-pay-later-to-avoid-credit-card-debt/622541/
Three-quarters (74.6%) of survey participants said that they had used a BNPL plan to purchase something.
They also told us what they had used one of these plans for, with the option to select multiple answers. The most common thing Gen Z used a BNPL plan for was buying clothing and accessories, with 37.1% saying they used one for this reason. The next most popular was purchasing home furnishings, one-third of our respondents used a BNPL plan for this.
| Item | % |
|---|---|
| Clothing or accessories | 37.1% |
| Home furnishings | 33.6% |
| Vacation | 28.2% |
| Household bills | 26.3% |
| Home remodeling or building work | 25.4% |
| Food or groceries | 24.1% |
| Electronics | 20.6% |
| Payday loan | 18.7% |
| Debt consolidation | 14.8% |
| Gifts | 12.6% |
| Other | 3.9% |
Of those who had used a BNPL, three-quarters (77.8%) said they would use one again, 11.8% said they wouldn’t, and 10.3% said they didn’t know if they would.
Money worries can be normal for people of all generations, but how do Gen Zers feel about their finances, and which money worries cause them the most anxiety?
Survey respondents were asked how often they worried about money-related issues. One-third said they worried about money every day, with almost two-thirds (61.3%) saying they worried about money at least once a week.
Only 3.7% of those in the group said they never worried about money, and 8.3% said they only worried about money a few times a year.
| How often Gen Z worry about money? | % |
|---|---|
| Every day | 33.60 |
| Once a week | 27.72 |
| Once a month | 26.72 |
| A few times a year | 8.28 |
| Never | 3.69 |
The most common thing that Gen Zers said they worry about when it comes to their finances is saving money, with 29.5% saying this is what worries them the most. This was followed by household bills which a quarter (23.1%) said they worried about the most in relation to money.
One-fifth (19.1%) worried the most about paying for healthcare and medical bills. Only 7.6% said they worried the most about economic stability throughout the U.S.
| Financial concerns that Gen Z worry about the most | % |
|---|---|
| Household bills | 23.10 |
| Healthcare and medical bills | 19.14 |
| Paying off debt | 12.21 |
| Saving money | 29.54 |
| Paying for college | 4.13 |
| Economic stability in the U.S. | 7.59 |
| Paying for a car | 3.14 |
| Home repairs | 1.16 |
As we mentioned, almost all of our participants (96.3%) said they worried about money at least sometimes. We also asked them whether they did any kind of financial planning, 79.2% said yes, they did do some form of financial planning.
Credit scores can have a big impact on the financial aspects of our lives, they affect whether we can buy a house, get a credit card, or be approved for a loan. We asked our Gen Z participants how important they thought a credit score was on a scale of 1 - 5, with 1 being ‘not important at all’, and 5 being ‘very important’.
Over 80% scored the importance of a credit score as a 4 or a 5, with 41.97% saying it was very important. Only 1% of our respondents thought a credit score was not important at all.
| How important do Gen Z think a credit score is? (Scale of 1 - 5) | % |
|---|---|
| 1 - Not important at all | 1.00% |
| 2 | 2.69% |
| 3 | 13.36% |
| 4 | 40.98% |
| 5 - Very important | 41.97% |
We also asked whether our participants knew what their own credit score was. Over 90% said that they did know their own credit score.
The study surveyed 1,702 Americans between April 1st and April 24th, 2022 using Amazon’s Mechanical Turk platform to ask them about their financial habits. Of the respondents, 1,003 were in the Generation Z age group and all were over 18.
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