5 Things Gen Z Spends Money On (2024)

Gen Z live online.

Their favorite places are YouTube, Instagram, Snapchat, and TikTok. Most of the time they are glued to their phones, tablets, and laptops.

This online lifestyle hugely influences their shopping habits. Online shopping is the norm for Gen Z and enables discovering products from new and small companies they wouldn't find in person.

The distinguishing factor for Gen Z is that they don't buy a product to buy it. Buying a product goes beyond the product itself, emphasis is on the product aligning with:

• Values
• Social and Political Beliefs
• Recommendations of favorite Influencers.

Madeline Skrovan, a marketing student at Arizona State University describes Gen Z's passions perfectly, "We are a generation for the people, and we tend to gravitate toward brands that align with similar beliefs similar to our own. If a brand can showcase that they stand with similar things we do, they're in a great spot..."

Millennials and older generations prioritize spending on travel, experiences, home goods, and furniture.

What about Gen Z?

Let's dive into what Gen Z prioritizes.

Spending Priorities of Gen Z

1. Health & WellnessGen Z values their health highly, body, social, environment, and especially their mental health. Mental health is deemed important as it plays a huge role in healthcare trends, the workplace, and future generations' well-being.This group leads in wellness building by focusing on promoting mental health, ethical product sourcing, and the effects of each ingredient on their body. For example, Gen Z is more likely to purchase natural remedies over traditional remedies.Health and Wellness are rated highly by Gen Z.
2. Lean brandsSmall brands' rise in recent years is not a flash in the pan. This trend is tied to the transparency of small businesses in the way they source their products, the causes they uphold, behind-the-scenes information, and customer data use.This transparency fosters a strong bond between the brand and its customers contributing to the thriving of the local economy.Transparency is key to tapping into Gen Z.
3. TechnologyAs mentioned earlier, Gen Z lives online. This lifestyle places them at the center of trends in the technological sector experiences. One such experience is gaming rise in the world, for instance, EA Sports FIFA and PES.Gen Z needs a demonstration of the reason one needs a brand's product, how the product could solve daily boredom or woes, and why it's better than a competitor's.Gen Z prefers the latest electronic gadgets that not only improve their lives but also give them fun.Fun experiences and Improvement in daily life are the glue that seals your brand's connection with the Gen Z.
4. EducationGen Z shoppers believe that a good education will change their lives by getting them a great job with high pay. This belief is reflected by the spending on school-related purchases, eBooks, courses, and educational programs which will contribute to more future earnings.Shape your product as an educational or career solution in your promotions and campaigns.This generation wants to learn new things.Gen Z's interest in learning is rooted in their need for Financial Stability.
5. SalesThe majority of Gen Z (80%) will wait for a product or service to go on sale before buying it because they are very price-conscious. This has been the outcome of a front-row ticket to the economic troubles experienced by their families.Gen Z focuses on price and value when purchasing a product.This focus has led to the rise of BNPL (Buy Now and Pay Later) purchasing model and Discounts.Gen Z has the goal of avoiding Financial Instability.

Conclusion

Gen Z shoppers prioritize Health and wellness, lean brands, technology, education, and Sales.

Gen Z is less likely to splurge on luxury products or brands.

Gen Z put value first.

If your brand targets Gen Z shoppers, you have only one question to answer.

"How can my brand provide better value to my customers?"