The findings indicate that Generation Z exhibits a distinct preference for investing in expensive retail items compared to other generations and over allocating funds for upcoming events or entertainment. Conversely, the older the generation the more likely they are to prioritize spending on trips.
GLOAccording to research from PYMNTS Intelligence, as consumers save up for significant purchases, Generation Z stands out as the only demographic prioritizing the acquisition of tangible goods over experiential memories. The study, titled “New Reality Check: The Paycheck-to-Paycheck Report – Why 60 Percent of Gen Z’s Live Paycheck to Paycheck,” draws insights from a survey of over 3,500 consumers in the United States, shedding light on financial behaviors across different age groups.
The findings indicate that Generation Z exhibits a distinct preference for investing in expensive retail items compared to other generations and over allocating funds for upcoming events or entertainment. In fact, members of this cohort are seven times more inclined to prioritize purchasing high-value products compared to attending events. Conversely, millennials and bridge millennials are more likely to prioritize event attendance as their primary financial goal.
However, it’s worth noting that Gen Z does show a preference for allocating funds towards trips or vacations over purchasing expensive products, albeit still maintaining a stronger inclination towards retail purchases.
In a contextual perspective, Jacqueline White, president at i2c, highlighted Gen Z’s profound impact on the digital payments landscape, noting their status as the first generation of digital natives with a clear preference for digital payment methods over traditional ones. Looking ahead, Karen Webster of PYMNTS observed that by 2030, Gen Z will constitute a significant portion of the workforce, with their disposable income and spending projected to increase substantially. As they benefit from intergenerational wealth transfers, Gen Z emerges as a coveted demographic for businesses across various sectors, recognizing them as the future workforce, customers, partners, and investors.
Source: GLO
