How To Cash In on the Gen Z Thrift-Shopping Boom Right Now
The secondhand apparel market is booming, and financial experts say there's real money to be made both as a savvy shopper and a seller. According to a new report from ThredUp, the U.S. secondhand market has exploded from roughly $28 billion in 2020 to approximately $56 billion today, with 62% of Gen Z participating in secondhand shopping last year.
But while the opportunity is real, so is the potential to turn a financial win into a spending trap. We asked finance experts for their best approaches to capitalize on this trend without letting low prices trick you into mindless spending.
Consider This: 6 Money-Saving Habits That Separate Regular Shoppers From Frugal Shoppers
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Find a Thrift Store or Platform You Like
Before committing to a regular thrift habit, you need to find a place where you actually enjoy shopping. Not every platform or store will feel right, and that's fine.
As Melanie Musson, a finance expert with Quote.com, explained, “If you walk into a massive Goodwill store, you may feel overwhelmed and have a strong desire to leave. That’s okay. If you walk into a local hospital boost club thrift store, and it’s so tiny with low ceilings and you feel closed in, it’s okay to leave. However, if you love the experience, embrace it.”
Musson recommended checking out at least five different stores or platforms to find what works for you.
Start With the Categories Where the Savings Are Largest
Most people think of clothing when they think of thrifting, but that's not where the real financial wins are.
According to Ali Zane, personal finance expert and CEO of IMAX Credit Repair Firm, "The biggest dollar gaps are in furniture, kitchen equipment, small appliances and items that get outgrown before they wear out. Someone furnishing a first apartment can cut that cost dramatically without any change in what they actually own in the end.”
This is where thrifting delivers genuine financial impact. It's not just incremental savings on a shirt, but hundreds or thousands of dollars off major household purchases.
Buy Secondhand for the Things That Depreciate the Instant You Own Them
Not everything makes sense to buy used. “A solid wood dresser or a cast iron pan doesn't care who owned it first,” Zane noted. “Anything with a motor, a battery or a safety rating deserves more scrutiny.”
The rule: If an item depreciates the moment you own it new — furniture, cookware, non-electronic goods — secondhand is smart. If it has mechanical or safety components, you're better off assessing condition carefully or buying new.
Turn Your Own Closet Into Cash
The same platforms that make thrifting easy make clearing out your own closet easy, and that money is more useful applied to a balance than sitting in an account.
“If someone is carrying revolving debt at a high rate, a few hundred dollars from a weekend of listing does more for their financial position than almost any other quick move available to them,” said Zane.
Rather than letting unused clothes sit in your closet, list them and apply the proceeds directly to debt payoff.
Don't Let Cheap Prices Manufacture Spending
This is the trap that turns a money-saving strategy into a budget killer. Low prices are psychologically powerful, and retailers know it.
"Thrifting saves money only when it replaces a purchase you were going to make anyway," said Zane. "Low prices make it very easy to buy more, more often, and end the month with less money and a fuller closet. If it's going on a card, the discount is irrelevant."
The math is simple: A 70% discount on something you didn't need is still a purchase you shouldn't have made.
The Bottom Line
So how do you make secondhand shopping genuinely profitable? Zane put it bluntly. "Decide what you need before you walk in and treat the savings as savings by actually moving the difference toward a goal. Otherwise, it's just cheaper shopping, not a financial strategy."
The Gen Z thrift boom works financially only when it replaces intentional purchases and the savings fund actual goals like debt payoff, emergency funds or investments. Everything else is just cheaper consumption.
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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