I Spend Therefore I am

We hear that Gen Zers have it worse than anyone, they’re making less money, they’re sinking deeper into debt – but what’s real and what’s sensationalized? With so many competing headlines about Gen Zers, we set out to really understand their financial mindset and what drives spending. Vox Media partnered with The Circus, an insight and data storytelling consultancy, to survey 1,000 Gen Zers ages 18-27, as well as 1,000 consumers ages 28+, to identify the ways in which Gen Zers are both similar and different from older generations when it comes to spending and financial well-being. We explored what Gen Zers value most, the tradeoffs they make to support their core values, the financial goals they’re ultimately working towards, and what influences these decisions — and our findings were more optimistic than recent headlines might suggest.

Gen Zers’ economic outlook is not doom-and-gloom. 70% of Gen Zers rate themselves as “middle class” or “wealthy,” and they’re more likely to think of themselves as “rich or well off” than all other generations. In many ways, this financial position is thanks to their parents, who have provided a strong financial foundation as well as ongoing support. With their discretionary income, they’re prioritizing self-actualization and personal growth. Gen Zers are making strategic spending decisions — not because they can’t afford things, but because they have a clear vision for the life they want to live and their own personal brand. Brands have a role to play with Gen Zers as products serve as symbols in their world, and the symbolic value, or the personality of a product, is part of what they’re paying for.

• Spending is growth, not acquisition: Compared to older generations, Gen Zers are significantly more likely to say they would work hard to continue spending on well-being and self-expression. They “justify” spending more, can be more impulsive, and find ways to spend on “growth” purchases as opposed to practical needs.

Implication: Focus less about what a product “does” and more about what a product “does for you”

• Forget quiet quitting; Gen Zers are willing to put in the work for financial freedom: Gen Zers are optimistic about their financial future, and are nearly as eager to prove it with long hours as they are confident in its likelihood of happening. That being said, over 60% don’t know enough about investing to feel comfortable doing it, which presents an educational opportunity for marketers, especially financial brands.

Implication: Consider opportunities for financial tools to support financial growth

• Digital publishers rival social media in influence: When looking at purchase categories where social media influenced a purchase, digital publishers have just as much influence on purchases in those categories. Digital publishers that are niche & brand-led will have the most authority, offering an authentic and high-quality POV across these categories.

Implication: Identify digital publishers that understand Gen Zers’ core priorities, which include niche hobbies/interests, well-being, and travel

Methodology:
In March 2024, the Vox Media Insights and Research team surveyed 1,000 Gen Zers ages 18-27, as well as 1,000 consumers ages 28+ with The Circus, an insight and data storytelling consultancy that specializes in original trend research, thought leadership, and strategic brand positioning rooted in a human-data-centric approach.

Design by Diana Young, D-constructed Design.

Take a look at the full report down below: