4 Frugal Habits Gen Zers Are Starting To Pick Up
There’s a lot of reputable research out there about the ways Gen Z is, collectively, quite unlike millennials, Gen X and boomers. One of the key ways Gen Zers are different from older generations is in their opinions and attitude around money. Not only do they spend differently than their elders, but they save differently.
As they mature, many Gen Zers are building more and more economically minded strategies that can help them adhere to their budgets. We talked with financial experts to learn about four frugal habits many Gen Zers are starting to pick up.
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Being Thoughtful and Realistic When Trimming Expenses
“Instead of cutting everything, they’re becoming more selective,” said Nicole Carlon, financial advisor at WiseOak Wealth LLC. “They’re pulling back in areas that feel low value, like subscriptions or impulse spending, so they can prioritize experiences and things that actually matter to them now.”
This is a pretty smart frugal habit, provided you don’t cut back on shopping only to spend much more on an exciting experience like a concert or a trip.
Choosing Quality Items Over Cheap Ones That Won’t Last Long
Gen Zers are clearly keen on savings, but they’re being very smart about it. Many are saving up for more expensive, long-lasting items, rather than buying the cheapest version that is likely to break or soon be unfashionable.
“Rather than replacing cheaper items over and over, many Gen Zers are choosing higher quality pieces that last longer,” Carlon said, adding that though this makes good sense, you need to use buyer discretion when taking this approach.
“Not everything labeled as quality actually saves money over time,” Carlon said. “Sometimes it’s just a more expensive purchase that feels easier to justify in the moment.”
Shopping Secondhand
“Buying secondhand or going thrifting is the most popular frugal habit my generation picked up from wanting to be aesthetic but also saving money along the way,” said Taylor Price, founder of Priceless Tay. “Thrifting started off as reminiscing on Y2K and over the years has become a feasible way to get more bang for your buck.”
And you can find expensive items for low prices.
“I recently went to Goodwill and bought 12 clothing items (two Italian leather belts, blazers, blouses) for a total of $110,” Price said. “Just one of those belts alone cost $300+ new.”
Using Technology as a Vessel to Savings
Overall, Gen Z is very smart about saving money, and they use technology to keep on track with the habit.
“Gen Z uses technology to help automate savings,” said Ashley Morgan, attorney and owner at Ashley F Morgan Law PC. “The hacks include cash-back extensions, price comparison tools, budgeting apps and even AI tools to track spending.”
This method is not unlike the coupon clipping strategy of yesteryear, but it does vastly expand your opportunities of ways to budget and save.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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