Which 'Cheap' Purchases Are Keeping Gen Z Broke? Financial Experts Spill the Tea
Is your fiscal future bleeding out from a thousand cuts?
Most people don’t go broke from one big financial mistake. Instead, it’s often from a series of small, easy purchases that feel harmless in the moment.
For Gen Z, small cheap purchases can chip away at income and make it harder to build real financial momentum. Financial experts pointed out to us the key “cheap” purchases that can keep Gen Z broke.
Don’t Trip: The Biggest Debt Payoff Mistake People Make When They’re Already Stressed About Money
Don’t Delay: Start Growing Your Net Worth With Smarter Tracking
1. Habitual Treats That Add Up
Daily coffee or snack habits are among the most frequent low-cost purchases. Adem Selita, co-founder of The Debt Relief Company, contended that small purchases “can actually do more harm than big ticket items over the lo ng term” because they’re sneaky drains.
A $7 coffee five times a week adds up to over $1,800 per year just from one habit, he pointed out.
The key, according to Matthew Cilento, a certified financial planner at Chelsea Financial Services, is not to justify “micro-purchases” just because they’re cheap.
Keep Financial Literacy Month going — learn how the MoneyLion app helps you track, manage and move your money in one place.
2. Food Delivery and Takeout
Convenience-driven food spending is another way small purchases turn into big expenses, Cilento said, pointing to the example of a $10 meal easily becoming $15 to $20 with food delivery fees.
“That’s a 50% to 100% increase just for the convenience factor that the apps offer,” he said.
3. Streaming Subscriptions and Recurring Charges
Subscriptions are one of the most common and dangerous “set it and forget it” expenses.
“Micro-transactions and subscription-based services are convenient, but they also tend to be silent killers long term,” Cilento warned.
Many people sign up for a subscription to capitalize on a one-time deal, then simply forget that they ever signed up for the service.
4. Digital Purchases and Microtransactions
Digital spending often doesn’t feel as “real” as handing over cash, which makes it easy to repeat.
“The most common cheap purchase I see adding up for Gen Z are digital purchases and smaller purchases on Amazon and Temu,” Selita said.
He said that frictionless nature creates “spending dopamine” that can lead to spending in other, larger purchase areas. “They can quickly become a default behavior rather than a conscious choice.”
5. Trend-Based Spending
Spending tied to trends create a constant cycle of low-cost purchases, Selita said.
Many of these purchases fall into the “wants” category instead of needs “and they do a lot to muddy up your budget,” he added.
Because trends change quickly, these items often don’t deliver lasting value, even though they feel justified in the moment.
6. The 'It’s Only $10' Purchases
Across all these categories, it’s easy to fall into mthe indset of believing that small purchases don’t matter: a mistake made to your budget’s detriment.
“If you spend $250 a month on coffee for 10 years, that’s $30,000 total,” Cilento said. “This can make a massive difference in your long-term savings plan and growth.”
What Selita called this the “it’s only $10 mindset” and said it does a lot more harm than the actual purchase. “Anytime you make a justification you are enabling yourself to make bad or unnecessary financial decisions.”
How These Small Purchases Delay Bigger Financial Goals
Individually, these expenses may seem manageable, but together, they can slow progress toward major milestones.
What you spend today could instead be saved and invested into a retirement fund or another future purchase like a home,” Selita said.
"Early investing is extremely sensitive to consistency,” Cilento said. In other words, you need to build up that nest egg steadily at the start, and the sooner you do it, the more astronomically the gains compound.
How To Cut Back Without Feeling Deprived
The solution isn’t to eliminate all small spending but to become more intentional about it.
Ask if you really need what you’re purchasing, Cilento said and review your bank and credit card statements regularly.
Also, institute habits like waiting to make a purchase, Selita said. “If you can close out the shopping cart and come back to it later… you could stand to save a lot of money in the long term.” Who knows? The website often even sends you additional discounts to lure you back to the purchase. If you've made up your mind, you'll either stay resolute or have scored a discount on a purchase you were going to make anyway.
The earlier you adopt healthy financial habits and cut back on small spending, the better your finances will be.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion: