11 Frugal Gen Z Habits People Make Fun Of That Actually Work
Would you consider trying out one of these money saving tricks?
DukiPh | Shutterstock.com While Gen Z's financial goals certainly look different than those of other generations as a result of their wildly different economic environment, it’s not surprising that their choices around saving are vastly different as well. According to a Bank of America survey, many Gen Zers are modifying their lifestyles to invest more heavily in their financial futures — tightening their budgets around everyday costs like groceries and spending less on non-essentials like clothing in order to ensure they’re able to focus on those things they value most, such as comfort, social connection, and proper nutrition.
Many of the frugal Gen Z habits people make fun of not only actually work, but they support their are strongly held priorities, allowing them to prepare for their futures without sacrificing important things like social outings and investing in memorable experiences.
Here are 11 frugal Gen Z habits people make fun of but actually work
1. Using money-saving browser extensions
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According to a PYMNTS survey, many Gen Zers are interested in credit card rewards — like flash sales and event access — as opposed to people in older generations who simply value cashback. However, it’s not simply credit card perks and leveraging spending with credit that Gen Zer’s have used and been ridiculed for in their daily lives to save money. They also largely rely on technology like money-saving browser extensions to get the best deals.
Typically used to scour the internet for coupons and deals, according to Bankrate, browser extensions like PayPal’s Honey or Rakuten not only help purchasers to save money on their expenses, they also rack up membership points that can be used in other places.
Like the other loyalty programs Gen Z adopts in their daily lives, there’s truth to the argument that if they’re already making these purchases, having a third party save them money without any commitment may be worth it.
2. Opting for food loyalty programs over delivery services
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According to Modern Restaurant Management, over 50% of Gen Z interacts with at least one restaurant loyalty program a week, compared to just 22% of older generations like baby boomers. Considering they’re more likely to order food on a fast food app or sign up for a loyalty program at their favorite restaurant, they’re more willing to rack up perks and rewards for things they’re already investing money on regularly.
Especially considering they’re collectively tightening their budgets on things like eating out, Gen Z is steering away from consistently relying on food delivery services like DoorDash and Uber Eats with outrageous fees and upcharges, instead ordering in-house, driving to the restaurant, or ordering directly from restaurant apps.
3. Living in their parents' homes
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While the vast majority of Gen Z still living at home with their parents aren’t doing so by frugal choice, but out of financial necessity, it’s still a privilege that gives them a chance to save money, pay down loans, and prepare to set up other facets of their adult lives.
According to a survey from the Pew Research Center, the pandemic sparked this mass movement of young adults back to their parents' homes, grappling with economic uncertainty and a tumultuous job market. Having to reconsider their spending habits, budget for student debt, and save to afford rising rent costs, many Gen Zers also battle stigmas around being back with their parents.
Whether it’s an internal stigma, guided by societal stereotypes and a misalignment with their once-exciting goals for early adulthood, or otherwise, this is certainly one of the frugal Gen Z habits people make fun of but actually work.
4. ‘Loud budgeting’
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A trend born on social media platforms like TikTok, “loud budgeting” is one of the new frugal Gen Z habits people make fun of but actually work — encouraging people to stick to their budgets and avoid peer pressured spending.
Rather than silently planning their budgets and trying to stay on track amid expectations from friends and family, Gen Z loudly announces their spending plans and goals — encouraging others to respect their financial boundaries and even support them in sticking to their plans.
It’s this added layer of support and acknowledgment that often fuels people in making better financial decisions, giving them a chance to restructure their routines, find new ways to connect with people without spending too much, and combat the feelings of shame, guilt, and anxiety commonly associated with missing out in hopes of saving.
5. Seeking out deals through influencers and social media
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One of the frugal Gen Z habits people make fun of but actually work for saving money is their reliance on social media. Whether it’s a purchase they were already planning to make or not, a great deal of the consumption and spending decisions Gen Z makes happen online, typically from influencers with deals, coupon codes, or perks to take advantage of.
These same Gen Z users online are also leveraging social media and financial influencers to learn financial literacy, according to the NatWest Group, learning how to best budget and save their money with things like high-yield savings accounts, relevant investments, and cost-effective tips.
Despite not having the formal opportunity to learn these skills early in life, living with busy parents and a lack of educational priorities on healthy money habits and skills, social media can offer up unique teaching moments, even if they are somewhat controversial to some.
6. ‘Soft saving’
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“Soft saving” may not be one of the financial decisions Gen Z makes consciously, but it's still one of the frugal Gen Z habits people make fun of but actually work, according to Bola Sokunbi, the founder of Clever Girl Finance. Rather than rigidly commit to paying off their debt, investing into retirement and savings, and overwork themselves trying to seek out financial freedom, “soft saving” helps individuals focus on feeling fulfilled first.
While they still may be contributing to savings accounts and budgeting, they’re also setting boundaries around finances and ditching traditional “hustle culture” mindsets about sacrifice and money stability. “The choice between prioritizing quality of life over long-term financial health is really a personal one,” Sokunbi says, “and it all depends on the individual’s values and circumstances.”
While Gen Z may be ridiculed by older, more traditional, generations — who also aren’t privy to the unique financial and economic circumstances young people are currently living through — for their “laziness” or privilege, they’re much less likely to burn out, have later regrets, and sacrifice their emotional wellbeing for financial freedom by committing to “soft saving” habits.
7. Romanticizing the mundane purchases
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Considering Gen Z is less likely to have the financial capacity to realize or save for larger purchases like home ownership that many people in older generations sacrificed and planned for, they have the bandwidth to invest in “romanticizing the mundane” when it comes to consumption.
Whether it’s meeting up with friends for a coffee or investing in their health by joining a running club, Gen Z thoughtfully invests money into nourishing their emotional and physical health — in ways that can protect them from toxic coping mechanisms like overspending.
While it may be one of the frugal Gen Z habits people make fun of — mocking their “avocado toast” breakfasts and social outings — it’s one that largely protects them from relying on consumption as a means to cope with feelings of guilt and shame around missing out on the present moment.
8. Adopting a vegetarian diet
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According to a U.S. Department of Agriculture study, meat can be incredibly expensive for people on a budget, with steak costing around $10 per pound and chicken costing nearly $4 per pound. By adopting a vegetarian lifestyle — even if it’s just “flexitarian,” eating meat only a couple times a month — Gen Zers are able to combat the rising costs of fresh meats, cooking at home in ways that can help them to save and invest their money elsewhere.
Especially considering that Gen Zers are more likely to adopt a vegetarian lifestyle than other generations, with nearly 51% arguing it’s an “easy change” for most people to make, it’s not surprising that it’s become one of the frugal Gen Z habits people make fun of but actually work for saving money.
9. Carrying around a reusable water bottle
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While water bottles like the Stanley mug have become controversial in their own right, manifesting as a status symbol that people in older generations despise, they’re still one of the frugal Gen Z habits people make fun of that actually work.
With the average disposable water bottle costing nearly $2, being able to refill a reusable water bottle can save young people hundreds in just a couple of weeks. Not only is it a sustainable venture for Gen Zers committed to combating climate change, it’s a money saving habit, as well.
10. Going to the library
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While going to the library and opting out of “fast literature” culture is a money saving venture in itself, many young people are using the library as an unexpected “third place” as well, meeting new people and connecting with their friends without having to go out to eat or spend money on an outing.
So, while saving money is becoming more important to many Gen Zers crafting their adult lives in an uncertain economic context, they’re also looking for ways to prioritize the things they value most in their lives — social networks, nourishing their emotional and physical wellbeing, and finding community.
11. Running errands with friends
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While having a dedicated day for errands is one of the frugal habits that can save Gen Z time and money on things like transportation or lost wages at work, making it a social outing is equally beneficial. Not only does finding a buddy to carpool save everyone money on gas, it’s a social interaction that aligns with Gen Z values of companionship and resourcefulness.
Social media and individualism in our culture may spark negative ideas about a frugal habit like this — making mundane tasks and complaint-worthy errands a group effort — but the truth is that small favors are the key to both saving money and building community.
Zayda Slabbekoorn is a staff writer with a bachelor’s degree in social relations & policy and gender studies who focuses on psychology, relationships, self-help, and human interest stories.