6 Things Older Generations Won’t Waste Money on, but Gen Z Keeps Buying
Just like tastes in clothing and entertainment can change over time, so too can preferences for spending. In fact, if you compare the budgets for seniors and Gen Z spenders across the United States, you may see a few similarities and some big differences.
“This one really comes down to money personalities more than generations to me,” explained Taylor Kovar, certified financial planner (CFP), co-founder of UseKlear.com. “What looks like overspending to a boomer is often just someone with a different comfort zone.”
Here’s a look at five things Gen Z refuses to stop buying that may not make it into the budgets for some older generations.
Trending Now: How To Fix Your Budget When Everything Feels Like a Necessity
For You: Start Growing Your Net Worth With Smarter Tracking
1. Food Delivery
“One of the biggest differences I see between generations is their use of food delivery services like DoorDash, Uber Eats and Grubhub,” said Ashley F. Morgan, bankruptcy and debt attorney at Ashley F. Morgan Law, PC. “Many older people view food delivery as a treat or something you use occasionally when you’re sick, busy or celebrating a special occasion. Many younger consumers see delivery services as a normal part of everyday life.”
2. Convenience
Morgan said she has some clients that average delivery service usage every day or twice a day.
“Convenience has become something many younger adults are willing to pay a premium for,” Morgan added. “There is certainly value in saving time, especially if someone is working long hours or juggling family responsibilities. The problem is how much it costs for that convenience.”
Morgan and other financial pros noted that by the time you add delivery fees, service fees, tips and menu markups, a meal can easily cost 30% to 50% more than picking it up yourself. “This additional cost may not seem like much, but if someone is ordering delivery several times a week, it can quietly become one of the larger discretionary expenses in the budget,” Morgan said.
3. Pay Later Financing
Per Morgan, another trend she sees much more frequently among younger consumers is Buy Now, Pay Later financing.
“Previous generations generally thought of financing as something reserved for larger purchases like a home, vehicle or major appliance,” she added. “Today, it is common to see people finance clothing, electronics, beauty products, furniture and even groceries or DoorDash orders.”
4. Streaming
According to Morgan, streaming subscriptions are another interesting example.
“Baby boomers and much of Generation X use streaming services today, but often have one service they purchase,” she explained. “Younger generations have grown up with the idea that different shows are spread across different platforms. Individually, most of these subscriptions seem inexpensive; but, together they can easily total several hundred dollars each month.
5. Gaming
Per Brandon Gregg, CFP, advisor with BBK Wealth Management, this includes streaming, subscriptions to content creators and in-game purchases.
“The gaming industry has exploded over the last 10 to 15 years, largely due to the massive amount of content creation surrounding gaming,” he explained. “It's not that older generations won't game at all, but to spend money on a consistent basis outside of the game itself is a newer thing. In-game purchases, apparel or spending money on live-streamed content creators is something foreign to older generations, yet video and streaming platforms continue to grow year after year.”
6. Experiences
Many financial pros who talked to MoneyLion noted younger generations tend to place a higher value on experiences than previous generations. They added that travel, concerts, festivals and other experiences have become a much bigger spending priority.
In addition, the experts noted that this isn’t necessarily a bad thing. Instead, it represents differing spending priorities and focusing on expenses that can bring some levels of happiness.
The Bottom Line
“What older generations ‘won't waste money on’ is often just a product of when they bought,” said Cameron Walker, manager of the Agent Network at Clever Offers. “For example, boomers and older Gen Xers bought homes when prices and rates made the sacrifice worth it. Ask a 28-year-old renter today to skip six years of small pleasures for a down payment that keeps moving further away and the calculation looks very different.”
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: