Study Analyzes Spending Categories in Different Generations
Spending habits can reflect different hobbies, needs and values, especially among different generations. Economic pressures, age and life milestones, and other value and culture-based factors influence each generation’s spending habits. As we can see in this chart from Qualtrics, clear patterns on splurges among different generations emerge. We can learn a lot about how people spend their money through this study, which examined what percentage of each generation is likely to splurge on their top three categories. Then we see 18 examples of spending categories and the percentage that each of the four generations is likely to splurge on this item or service. Read more
First, let’s look at Generation Z, the youngest working generation. These young people struggle with the high cost of living, student debt, and entry-level wages. Perhaps because of these constraints and stresses, Gen Z still looks for places they can splurge on things they enjoy as a treat. 37% of Gen Z said they’d splurge on dining or drinking out, one of the few categories each generation had in common in their top three. Gen Z was the only generation with at-home entertainment in their top three. This consists of things like streaming services, video games, and e-readers. This splurge category may be because Gen Z grew up with screens and tablets, and their COVID experience at a young age pushed them to entertain themselves early on. Gen Z splurges on beauty and personal care products too, possibly because they engage with influencer culture.
When we compare it to Boomers, the oldest generation, we see some clear differences. Travel is their number one splurge since so many are retired and have time to see the world. Like other generations, they enjoy dining out as well, and they’re willing to splurge on groceries, which could be a mix of conveniences and necessities.
Consumer spending changes with the economy, but overall, the Qualtrics data makes it clear that generations prioritize different areas of spending.
