11 Things Gen Z Overspends On That Boomers Would Not Waste Their Money On
A deep dive into how generational spending habits and shifting values have shaped our financial priorities.
MPH Photos | Shutterstock When it comes to finances and spending habits, Gen Zers and boomers are vastly different. Boomers tend to prioritize traditional expenditures, like magazine subscriptions and lottery tickets. In contrast, Gen Z's upbringing during a technological revolution has shaped their spending to reflect their modern lifestyle and personal preferences. Given Gen Z's different spending habits compared to boomers, Gen Zers have no problem splurging on some items, while boomers might be more hesitant.
Here are 11 things Gen Z overspends on that boomers would not waste their money on:
1.Streaming Services
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Gen Z ditches cable in favor of Netflix, Hulu, and Disney+ — often juggling multiple subscriptions simultaneously. While boomers might only stick with cable or a few services, younger folks go all-in, racking up recurring costs that can quickly add up.
Unlike boomers, who rely on cable TV instead of streaming services, Gen Zers spend most of their money on entertainment. A recent survey by First Merchants Bank highlights the role streaming services play in younger Americans' budgets. According to the findings, 15% of Gen Z report overspending on streaming platforms. In contrast, only 7% of Gen X and 6% of baby boomers say they exceed their budgets on these services.
Almost all U.S. households (99%) subscribe to at least one streaming service, making them a common expense. Younger consumers tend to subscribe to multiple platforms, showing enthusiasm for digital content and diverse entertainment.
2.Food Delivery & Takeout
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DoorDash, Uber Eats, and Postmates are practically Gen Z’s personal chefs. It’s quick and convenient, but the fees and markups are no joke. Boomers typically pinch pennies by cooking at home or opting for simpler dine-in experiences. Gen Z spends much of its disposable income on dining out and using app food delivery services, averaging $2,483 annually, according to the Bureau of Labor Statistics BLS.
Similarly, a report from Morning Consult found that Gen Z estimates that about 40% of their monthly spending goes to restaurants and packaged foods. Boomers, on the other hand, are more likely to save their money, prepare food at home, and spend their funds on grocery shopping.
"As more and more Gen Zs enter the workforce, the generation's spending power is on the rise, but currently they still lean more towards affordable options in restaurants than all other generations," Fabiola Del Rio, VP of integrated marketing communications at Panda Express, told Business Insider. "Discounts, specials, and menu prices are strong considerations when treating themselves to fast-casual dining."
3.Apparel
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Trendy clothes are king for Gen Z — even if it means dropping serious cash on the next big look. Boomers lean toward classics and long-lasting pieces, while Gen Z keeps upgrading wardrobes to stay on top of the latest TikTok or Instagram fashions.
Gen Z has become synonymous with an eclectic style, usually made of carefully curated items that are either trending or coming into style. Edubirdie, an online academic aid platform, discovered that fashion is a key concern. The survey, which involved 2,000 Gen Z individuals, highlighted the significant mental toll many face for needing to keep up with fashion trends.
Forty-seven percent of Gen Z individuals feel pressured to buy clothes just to "fit in," pointing to broader issues driving this preoccupation with appearance. A more significant 56 percent of these young people reported feeling "financial strain" from keeping up with fashion trends, which led to increased feelings of stress.
Despite Gen Z's revolutionary approach to finding their style and challenging fashion norms, their dedication has also led to financial strain.
4.Coffee
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An $8+ latte is part of Gen Z’s daily ritual — especially if it comes with a brand-name vibe or responsibly sourced beans. Boomers prefer to brew coffee at home, saving that extra chunk of change for something more substantial.
While millennials may have once played a pivotal role in the coffee industry's boom, Gen Z seems to have become a more marketable demographic. Many boomers love to use this to point out why Gen Zers cannot spend their money on things that can improve their lifestyle, like saving to buy a home.
Even though buying an expensive latte doesn't quite help save up for a home, a recent National Coffee Data Trends report shows that 46% of Gen Z respondents reported drinking coffee the past day. Gen Z is also willing to spend more on products that align with their values, making them a prime target for the coffee industry’s next wave of offerings.
5.Luxury Goods
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"Doom spending" happens when Gen Z invests in designer labels to cope with stress or uncertainty about the future. Conversely, Boomers are more likely to set that cash aside for a rainy day (or skip luxury logos altogether).
In January 2024, Bloomberg highlighted that younger generations increasingly use their savings to purchase luxury items. Data from Credit Karma reveals that 35% of Gen Z individuals engage in this behavior.
Considering the state of the world and the hopelessness many Gen Z young adults feel, it's no wonder they try to seek happiness from something as materialistic and frivolous as spending money on luxury goods. In contrast, boomers prefer a more classic lifestyle and are used to saving their money in times of crisis.
With the high cost of student loans, inflation, and a somewhat competitive and challenging job market, Gen Zers know they probably won't ever be able to afford property, kids, or retire with a sizable amount of money in their bank accounts.
6.Skincare & Beauty Products
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Influencer-endorsed toners, lotions, and serums are big business. Gen Z splurges to emulate flawless Instagram feeds. Boomers are more old-school — sticking to tried-and-true products or a basic skincare routine they’ve used for decades.
In line with the idea of "doom spending" and indulging in luxury items, members of Gen Z are willing to invest their money in things that bring them joy, with skincare being a prime example. Although 33% of consumers regret spending too much on beauty products, this percentage increases to 52% within the Gen Z demographic, based on a LendingTree survey.
Contrary to boomers, Gen Zers are growing up in a time of social media and constant comparison. They see influencers and A-list celebrities using certain skincare brands, and this need to adhere to beauty standards isn't lost on young adults, no matter how much we want to resist.
7.Pets
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Gen Z sees pets as family and doesn’t mind paying for top-tier food, grooming, vet care, or fancy accessories. Boomers love their animals, too, but they might balk at the thought of elaborate pet wardrobes and hefty monthly insurance bills.
Considering that many Gen Z young adults refuse to start families when they're still not financially independent, they probably choose to splurge on their furry friends.
A survey by The Harris Poll asked 2,125 adults aged 18 and over about pet preferences and spending habits on their pets. The results revealed younger generations are spending more on their pets, with some even going into debt. American pet owners spend an average of $4,366 annually on their pets. The survey outlined a stark contrast that Gen Zers are outspending baby boomers. Gen Z spends an average of $6,103 annually on their pets, while baby boomers spend $2,454.
This spending includes food, vet care, insurance, grooming, clothing, and toys. It's reached the point where 29% of Gen Zers admitted to facing debt because of these expenses.
8.Experiences & Travel
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Catching flights over feelings, Gen Z invests in wanderlust, even if it means whipping out the credit card. Boomers are no strangers to travel, but they’re more likely to plan carefully to avoid debt or stick to local trips to save money.
Younger generations, especially Gen Zers, seem to have no problem spending money on travel.
Gen Z (44%) are more likely to spend on travel in 2024 than boomers (24%), according to Bankrate research. Travel is the most popular debt-funded purchase for young people, surpassing live entertainment and dining out. Bankrate’s 2024 summer travel survey shows that 42% of Gen Z will use debt for summer travel in 2024, compared to 22% of boomers.
It's not that boomers aren't willing to travel either, but they might make smarter decisions about their financial status regarding traveling. In contrast, Gen Zers are willing to spend money they sometimes don't have just for the experience of going abroad.
9.Fitness & Wellness
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From boutique gyms to personal trainers and the hottest workout classes, Gen Z is investing in wellness. While health-conscious, Boomers typically choose more budget-friendly options like standard gyms or community fitness programs.
A report from ABC Fitness’s inaugural Q1 Wellness Watch Report shows that traditional gym check-ins in the first quarter of 2024 were up 60% from 2023. Gen Z might be driving that trend more than other generations.
ABC Fitness says Gen Zers are most invested in physical and mental health. Twenty-nine percent of new gym joiners are Gen Zers, and 38% of Gen Z respondents use traditional health clubs. Compared to Boomers, Gen Z is more likely to seek out personal trainers or coaches (38%) than the general population (29%).
Gen Z's desire to invest in fitness and wellness stems from their desire to build community. Going to workout classes and engaging in group activities is more than just exercising; it also connects them with others.
10.Latest Tech
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Gen Z loves the latest iPhones and laptops, while Boomers hold onto older devices until they fail, saving money.
Given Gen Z's extensive use of social media, it's understandable that they are eager to invest in the latest technology. Recent data from Morning Consult reveals that many Gen Zers aspire to careers in social media.
According to the report, 57% of Gen Zers say they’d be influencers if the opportunity presented itself. To be successful influencers, they must invest in the latest tech and resources to get them there.
11.Aesthetic Home Products
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LED lights, sunset lamps, and the newest decor trends are right up Gen Z's alley — even if it means spending on stuff that might be "so last season" in six months. Boomers typically purchase timeless, cost-effective furnishings that won’t break the bank.
Whether embracing minimalist, maximalist, or other trendy styles, Gen Z places significant importance on creating a homey atmosphere, even if it involves spending money they might not have or need to pay. In contrast to boomers, who typically prioritize timeless and practical decor, Gen Z aims for a more playful approach in their living spaces.
Typically, showing off their home decor pieces and accessories on places like TikTok and Instagram has made it even more tempting for Gen Zers to ensure they're keeping up with all of the latest home decor trends.
Nia Tipton is a staff writer with a bachelor’s degree in creative writing and journalism who covers news and lifestyle topics that focus on psychology, relationships, and the human experience.