Shopping: Gen Z: Future Saving Feels 'Pointless' Amid Economic Strains, New Survey Finds

Why it is the topic trending:

• This article addresses a significant shift in financial attitudes among a key demographic – Gen Z. Their feeling that future saving is "pointless" has broad implications for individual financial well-being, the economy, and the future of investment and savings industries.

• The survey data from Intuit Credit Karma provides a quantifiable measure of this sentiment, highlighting a potentially concerning trend where immediate gratification and experiential spending are prioritized over long-term financial security.

• The article connects this attitude to specific economic factors, such as tariffs and lower relative wages, adding context and credibility to the findings. It suggests that external economic conditions are playing a significant role in shaping Gen Z's financial outlook.

• The contrast between Gen Z's spending plans and the more budget-conscious approach of older generations further emphasizes the uniqueness and potential challenges of this trend.

Overview:

A new survey by Intuit Credit Karma has revealed that nearly half of Gen Z (49%) feel that saving money for the future is pointless, preferring to spend their money now on experiences like dining, travel, and entertainment. This sentiment persists despite rising costs and economic uncertainty, with 37% planning to spend more this summer than in previous years and 48% prioritizing experiences over saving, even if it leads to financial strain. Experts suggest this focus on immediate gratification might be a response to a challenging economic year marked by tariffs and relatively lower wages for this generation. While older generations are more inclined to cut back on spending, Gen Z views travel as a non-negotiable expense for many, leading some to rely on "buy now, pay later" services and potentially accrue debt.

Detailed findings:

• 49% of Gen Z say planning for the future feels pointless.

• 37% of Gen Z plan to spend more on dining, travel, and entertainment this summer compared to previous years.

• 48% of Gen Z will prioritize experiences over saving, even if it causes financial strain.

• The survey suggests this apathy towards future saving is linked to a rough economic year fueled by tariffs and relatively lower wages for Gen Z.

• First-time homebuyers made up just 24% of the market in 2024, a record low, reflecting concerns about affordability among younger generations.

• Nearly half of Gen Z say vacations are non-negotiable, even if they have to sacrifice in other areas.

• 46% of Americans report feeling anxious about affording their summer plans, with older generations more likely to cut back or skip vacations.

• 45% of Gen Z say they've used or plan to use "buy now, pay later" (BNPL) services for summer purchases, with 68% of these users admitting they wouldn't be able to afford certain events without it.

• 77% of Gen Z users of BNPL services say it has encouraged them to spend more than they can afford.

• 32% of Gen Z expect to take on debt over the summer, with 40% predicting balances between $1,000 and $4,000.

Key success factors of product (trend):

• Psychological Response to Economic Uncertainty: Feeling powerless over long-term economic conditions might lead to a focus on what can be enjoyed in the present.

• Emphasis on Experiences and Immediate Gratification: Cultural values and social media often promote the importance of experiences and living in the moment, especially for younger generations.

• Availability of "Buy Now, Pay Later" Options: The ease of accessing credit for immediate purchases can lower the perceived barrier to spending.

• Perception of Future Financial Instability: Lower wages relative to past generations and concerns about the housing market may contribute to a feeling that future saving is futile.

• Social Influence and FOMO: The pressure to participate in social activities and travel, often amplified by social media, can drive spending.

Key Takeaway:

A significant portion of Gen Z currently feels that saving for the future is pointless amid economic strains, leading to a prioritization of present spending on experiences, often fueled by easy credit options like "buy now, pay later." This attitude contrasts with the more cautious approach of older generations and raises concerns about the long-term financial well-being of this demographic.

Main Trend:

The main trend highlighted in this article is "Present-Focused Spending Amidst Perceived Economic Futility," where a significant segment of Gen Z is prioritizing current experiences and spending over future saving due to a sense of pessimism or powerlessness regarding long-term economic prospects.

Description of the trend (please name it):

This trend, "Present-Focused Spending Amidst Perceived Economic Futility," describes a shift in financial behavior among a significant portion of Gen Z, characterized by a diminished motivation to save for the future. This lack of enthusiasm for future planning stems from a feeling that economic conditions are challenging and may not improve significantly, making long-term saving seem less impactful or even "pointless." Consequently, this demographic is more inclined to prioritize immediate gratification through spending on experiences like travel, dining, and entertainment, often utilizing readily available credit options to fund these desires, even at the risk of incurring debt.

What is consumer motivation:

• Seeking Immediate Happiness and Experiences: In the face of uncertainty, there's a desire to make the most of the present and create positive memories through experiences.

• Feeling a Lack of Control Over the Future: Economic anxieties and perceived limited opportunities for upward mobility might reduce the motivation for long-term planning.

• Social Pressure and FOMO: The desire to keep up with peers and not miss out on social activities and travel, often amplified on social media, drives current spending.

• Short-Term Focus and Instant Gratification: Younger generations, in general, may have a stronger inclination towards immediate rewards and less experience with long-term financial planning.

• Perception of Limited Impact of Small Savings: With concerns about major expenses like housing affordability, the impact of smaller, consistent savings might feel insignificant.

What is driving trend:

• Economic Uncertainty and Inflation: The current economic climate, marked by rising costs and concerns about recession, makes future financial planning feel less secure.

• Relatively Lower Wages for Gen Z: Compared to previous generations at similar life stages, Gen Z may have less disposable income to save.

• High Cost of Living: Significant expenses like housing and education can make saving for the future seem like an insurmountable task.

• Easy Access to Credit and "Buy Now, Pay Later" Services: These options facilitate immediate spending without the immediate pain of payment.

• Marketing and Media Emphasis on Experiential Spending: Advertisements and social media often promote the value of experiences and living in the moment.

What is motivation beyond the trend:

• Desire for Connection and Social Engagement: Experiences like travel and dining often involve social interaction and contribute to a sense of belonging.

• Seeking Stress Relief and Escape: Spending on leisure activities can be a way to cope with economic anxieties and the pressures of daily life.

• Investing in Personal Development and Memories: Some experiences, like travel, are seen as opportunities for personal growth and creating lasting memories.

Description of consumers article is referring to:

The article specifically refers to the demographic cohort known as Generation Z, in the United States, with a focus on their financial attitudes and behaviors regarding saving and spending amidst current economic conditions. We can infer the following about these consumers:

Who are the consumers implied by article:

• Gen Z Individuals: Those born roughly between the mid-1990s and the early 2010s.

• Adults in the US: The survey polled US adults, but the focus is on Gen Z findings.

• Likely Experiencing Financial Strain: The article highlights concerns about lower wages and housing affordability, suggesting this segment faces economic challenges.

• Active on Social Media: The popularity of BNPL services and the cultural emphasis on experiences often intersect with social media trends.

Who are them:

• Young adults in the United States, part of Generation Z, who are currently navigating their financial lives amidst economic uncertainty and rising costs.

What kind of products they like:

• They prioritize spending on dining, travel, and entertainment. They also utilize services like "buy now, pay later" for purchases.

What is their age?

• Approximately 15-28 years old in 2025.

What is their gender?

• The survey polled both genders, and the trend likely applies across genders within this demographic.

What is their income?

• The article suggests relatively lower wages compared to previous generations at their age. Many are likely in entry-level positions or early stages of their careers.

What is their lifestyle:

• They are often digitally native, value experiences, and are influenced by social media trends. They may be juggling education, early career jobs, and social lives.

What are their category article is referring shopping preferences:

• The article refers to their preferences for spending on experiences over saving, and their willingness to use credit (BNPL) to facilitate these purchases.

Are they low, occasional or frequent category shoppers:

• They are likely frequent shoppers in categories related to dining, travel, and entertainment. Their usage of BNPL services for these purchases suggests a willingness to make these types of expenditures.

What are their general shopping preferences-how they shop products, shopping motivations:

• They are likely influenced by convenience, trends, and social media. The appeal of immediate gratification and the desire to participate in experiences seem to be key motivations, even if it means delaying saving or incurring debt.

Conclusions:

The Intuit Credit Karma survey reveals a concerning trend among Gen Z, where a significant portion feels that future saving is pointless amid economic strains, leading them to prioritize current spending on experiences, often with the help of "buy now, pay later" services and at the risk of accumulating debt. This attitude, potentially shaped by economic uncertainty and a focus on immediate gratification, has significant implications for their long-term financial well-being and the broader economy.

Implications for brands:

• Financial Institutions: Need to understand and address the reasons behind Gen Z's reluctance to save. This might involve reframing savings products or emphasizing short-term financial goals that align with their priorities.

• Travel and Entertainment Industries: Can capitalize on Gen Z's desire for experiences, but should also be mindful of the potential for debt accumulation through BNPL services.

• Retailers Offering "Buy Now, Pay Later": Should consider the ethical implications of encouraging spending beyond means and ensure transparency about the risks associated with BNPL.

Implication for society:

• Potential for Long-Term Financial Instability: A generation that prioritizes spending over saving could face significant financial challenges in the future, impacting retirement prospects and overall economic stability.

• Need for Financial Literacy Education: Addressing the feeling that saving is "pointless" might require better financial literacy education that highlights the importance of long-term planning, even in uncertain times.

Implications for consumers:

• Risk of Debt Accumulation: The reliance on BNPL services for experiences could lead to significant debt, especially if spending habits don't align with repayment capacity.

• Potential for Regret and Financial Stress: While enjoying experiences now, Gen Z individuals might face increased financial stress and regret in the future if they haven't adequately prepared for long-term goals.

• Importance of Balancing Present Enjoyment with Future Security: Finding a balance between experiencing life now and saving for future needs is crucial for long-term financial well-being.

Implication for Future:

• Possible Shift in Saving Attitudes as Economic Conditions Change: Gen Z's perspective on saving might evolve as they age and as the economic landscape shifts.

• Increased Focus on Short-Term Savings Goals: Financial products and messaging might need to adapt to emphasize more immediate savings goals that align with Gen Z's current priorities.

• Potential for Greater Government or Institutional Intervention: Concerns about the long-term financial security of younger generations might lead to policy changes or initiatives aimed at encouraging saving.

Consumer Trend (name, detailed description):

Experience-Driven Spending Over Future Saving: This trend describes a consumer behavior, particularly prevalent among younger generations like Gen Z, where disposable income is prioritized for immediate experiences, such as travel and entertainment, often at the expense of saving for long-term financial goals.

Consumer Sub Trend (name, detailed description):

• "Buy Now, Worry Later" Mentality: A tendency to make purchases, especially for experiences, using "buy now, pay later" services without fully considering the long-term financial implications or ability to repay.

• Perceived Futility of Long-Term Financial Planning: A growing sentiment among some younger adults that saving for the distant future is less meaningful or achievable given current economic uncertainties and immediate life priorities.

Big Social Trend (name, detailed description):

The YOLO (You Only Live Once) Economy: This broader social trend reflects a cultural emphasis on living in the moment and prioritizing immediate enjoyment and experiences, often influencing spending habits, especially among younger generations.

Worldwide Social Trend (name, detailed description):

Generational Differences in Financial Outlook: Across the globe, different generations exhibit varying attitudes towards saving, debt, and financial planning, often shaped by the specific economic and social contexts they have experienced.

Social Drive (name, detailed description):

The Pursuit of Happiness and Fulfillment: The desire to experience joy, create memories, and live a fulfilling life often drives spending on experiences, especially when the future feels uncertain or challenging.

Learnings for brands to use in 2025:

• Financial Institutions: Need to understand the psychological and economic factors behind Gen Z's saving attitudes to develop relevant and appealing products and messaging.

• Travel and Entertainment Businesses: Can continue to target Gen Z's desire for experiences but should also be mindful of responsible spending and potential partnerships with financial literacy resources.

• All Brands Targeting Gen Z: Should be aware of the financial pressures this generation faces and tailor their marketing and value propositions accordingly.

Strategy Recommendations for brands to follow in 2025:

• Financial Institutions: Develop savings products that align with short-term goals (e.g., saving for travel) or gamified savings apps to make saving more engaging for Gen Z.

• Travel and Entertainment Businesses: Consider offering more budget-friendly options or partnerships with BNPL services that have transparent and manageable repayment terms (if choosing to partner with them at all).

• All Brands Targeting Gen Z: In their marketing, acknowledge the economic realities faced by this generation and offer solutions or messaging that resonate with their current priorities while subtly promoting long-term financial well-being.

Final sentence (key concept) describing main trend from article (which is a summary of all trends specified), and what brands & companies should do in 2025 to benefit from trend and how to do it.

In 2025, the prevailing trend of "Present-Focused Spending Amidst Perceived Economic Futility" among Gen Z necessitates that financial institutions and businesses targeting this demographic acknowledge their current priorities and economic anxieties by developing products, services, and messaging that balance immediate gratification with future financial well-being, potentially through short-term savings solutions or responsible credit options.

Final Note:

• Core Trend: Present-Focused Spending Amidst Perceived Economic Futility: A significant portion of Gen Z prioritizes current experiences over future saving due to economic uncertainty and a feeling that long-term financial planning may be less impactful.

• Core Strategy: Balance Immediate Appeal with Future Financial Awareness: Brands targeting Gen Z need to acknowledge their desire for present experiences while also subtly promoting the importance of long-term financial health and offering relevant solutions.

• Core Industry Trend: The Challenge of Engaging Younger Generations in Long-Term Financial Planning: The financial services industry faces a challenge in motivating Gen Z to prioritize saving in the current economic climate.

• Core Consumer Motivation: Seeking Happiness and Experiences Now: Driven by a desire for immediate enjoyment and fulfillment, Gen Z's spending decisions are often focused on creating positive experiences in the present.

Final Conclusion:

The findings of the Intuit Credit Karma survey paint a picture of a generation facing significant economic anxieties that are influencing their financial behaviors. While the desire to enjoy the present is understandable, the feeling that future saving is "pointless" carries potential long-term risks. For financial institutions and businesses to effectively engage with Gen Z, they must understand these underlying motivations and develop strategies that resonate with their current priorities while fostering greater awareness and engagement in planning for their future financial security.

Core Trend Detailed:

The "Present-Focused Spending Amidst Perceived Economic Futility" core trend highlights a distinct financial behavior among a substantial segment of Generation Z. This behavior is characterized by a diminished inclination towards saving for the distant future, stemming from a belief that current economic challenges and uncertainties render long-term financial planning less meaningful or achievable. This sentiment leads to a stronger emphasis on spending disposable income on immediate experiences, such as travel, dining, and entertainment, often fueled by the accessibility of "buy now, pay later" services. This prioritization of present enjoyment over future security can be seen as a response to factors like inflation, relatively lower wages compared to previous generations, and concerns about major financial milestones like homeownership. This trend suggests a potential disconnect between the perceived value of saving and the immediate desire for life experiences and gratification within the current economic landscape.

Key Characteristics of the Core trend:

• Low Prioritization of Future Saving: A significant portion of Gen Z reports feeling that saving for the future is not a meaningful endeavor.

• Emphasis on Experiential Spending: Spending on travel, dining, and entertainment takes precedence over long-term financial planning.

• Reliance on "Buy Now, Pay Later" Services: BNPL options are frequently used to fund immediate purchases, particularly for experiences.

• Sense of Economic Pessimism or Powerlessness: Underlying the trend is often a feeling of uncertainty or a lack of control over future economic conditions.

• Potential for Debt Accumulation: The combination of prioritizing spending and using BNPL services carries the risk of accruing significant debt.

Market and Cultural Signals Supporting the Trend:

• Surveys Indicating Low Savings Rates Among Gen Z: Financial surveys consistently show lower savings rates for this generation compared to older demographics at similar life stages.

• Social Media Trends Promoting Experiences and "Living in the Moment": Platforms like Instagram and TikTok often showcase travel and leisure, reinforcing the value of these experiences.

• Increased Marketing and Availability of BNPL Services: The ease of accessing short-term credit encourages immediate spending.

• News Coverage Highlighting Economic Challenges Faced by Young Adults: Reports on student loan debt, housing affordability, and wage stagnation contribute to a sense of economic uncertainty.

• Lower Homeownership Rates Among Gen Z: Difficulty in entering the housing market may diminish the incentive to save for this long-term goal.

How the Trend Is Changing Consumer Behavior:

• Increased Spending on Discretionary Items and Experiences: A larger portion of Gen Z's income is allocated to immediate consumption.

• Less Emphasis on Traditional Savings Goals: Retirement planning and long-term investment may take a backseat to more immediate needs and desires.

• Greater Willingness to Take on Short-Term Debt: BNPL usage indicates a higher tolerance for immediate debt to fund current consumption.

• Potential for Delayed Financial Milestones: The focus on present spending may delay the achievement of long-term financial goals like buying a home or saving for retirement.

• Influence of Social Norms and Peer Behavior: The tendency to prioritize experiences is often reinforced by social media and the spending habits of peers.

Implications Across the Ecosystem:

• For Financial Institutions: Need to adapt products and messaging to resonate with Gen Z's current financial mindset.

• For Travel and Entertainment Industries: Opportunity to cater to this demographic's strong desire for experiences.

• For the Economy: Potential concerns about long-term savings rates and financial stability if this trend persists.

• For Gen Z Individuals: Risk of long-term financial insecurity if present-focused spending habits continue without adequate future planning.

Strategic Forecast:

• The "Present-Focused Spending Amidst Perceived Economic Futility" trend is likely to persist in the short to medium term, influenced by ongoing economic conditions and cultural values.

• As Gen Z ages and their financial situations potentially evolve, their attitudes towards saving may also shift.

• The financial services industry will likely need to innovate to find ways to engage and motivate this generation to prioritize long-term financial planning.

Areas of innovation (based on discovered trend):

• Gamified savings apps that reward short-term savings goals related to experiences: Engaging Gen Z by making saving feel more immediate and tied to their priorities.

• Educational content on personal finance delivered through short-form video platforms like TikTok: Reaching Gen Z where they spend their time with easily digestible financial literacy information.

• "Savings for Experiences" accounts with features that allow contributions from friends and family: Aligning savings with their desire for shared experiences.

• Financial planning tools that demonstrate the long-term impact of even small, consistent savings, framed within the context of their life goals: Helping them see the value of saving despite current economic challenges.

• Partnerships between financial institutions and lifestyle brands to offer exclusive rewards or discounts for saving: Incentivizing saving by linking it to their interests in travel, entertainment, and dining.

Final Thought (summary):

Gen Z's current inclination towards prioritizing immediate experiences over future saving, driven by economic anxieties and a focus on present enjoyment, presents a significant challenge and opportunity for financial institutions and businesses to adapt their strategies and messaging to better engage with this influential generation and foster a more balanced approach to their financial well-being.

Source: https://dailyvoice.com/ct/hartford/gen-z-future-saving-feels-pointless-amid-economic-strains-new-survey-finds/