10 Gen-Z Budgeting Habits That Everyone Could Benefit From

The younger generations tend to get a lot of flack from those who have been there before — but as it turns out, there are a lot of budgeting and frugal living habits that Gen-Z has adopted that could actually make a lot of sense for all generations to emulate to save more money and have a more balanced lifestyle overall.

Gen-Z has watched their parents struggle through a tumultuous financial landscape while being fed the narrative that their older counterparts, millennials, have ruined their financial life by way of avocado toast. They’re also the first generation to have technology and social media at their fingertips since birth so it only makes sense that they have a strong response to their own personal finances. In fact, studies show that the chronically online generation is leading the way in financial literacy and savings. 

Here are the most savvy Gen-Z budgeting habits that folks of any generation can learn from and potentially implement into their own financial picture.

You’ve probably heard about the “underconsumption core” trend that has swept social media this year. The trend is simple and straightforward — and one of the best things young people could be doing for their finances. Underconsumption core simply means living with less and not rushing out to buy the latest trendy items or cheap trinkets.

Instead young people are leaning into having just one or two of items like sneakers, accessories, or kitchen items, and rather than rushing out and replacing items as they get old or damaged, those who practice underconsumption core will do what they can to repair their items to avoid buying new.

Tinned fish like sardines and mackerel were known as “hot girl food” earlier this year with social media users posting their hauls and sharing date night ideas that included the relatively affordable grocery item. This wasn’t the only cheap food trend to sweep social media, either.

Gen-Z has been “romanticizing” cheap grocery items and pantry staples across the board with things like “girl dinner” becoming even cooler and more on-trend than being seen at a trendy restaurant. Girl dinner can be whatever you want it to be but it essentially boils down to a mash-up of small side dishes like pickles, bread, nuts, cheese, and whatever leftovers you might have in the fridge.

Studies show that Gen-Z and Millennials are responsible for a “reading renaissance” with local libraries seeing a major uptick in young library card holders. Not only does this allow Gen-Z to save money on things like new books, audiobooks, and other media, but it also creates a third place where young people can meet up and socialize without having to spend money.

There’s a major lack of third places— places where people can gather and connect outside of the home or workplace — that don’t involve spending money, which has only added to the loneliness epidemic. But the library renaissance means that young people are seeking out ways to build community while also being mindful of budget.

Gen-Z loves thrift shopping and buying second-hand, so much so that certain thrift shops have noticed a decline in the quality and variety of items in your average thrift shop. Young people are no longer buying new and then decluttering last season’s gear at the same rate as their older counterparts. Instead, they prioritize the hunt, with the intention of scoring a unique item that costs a fraction of what they’d find online or at the mall.

Many Gen-Z don’t feel the need to buy the latest and greatest items as soon as they receive their paycheck. Instead a lot of young people today are prioritizing experiences rather than physical items. This can look like hiking and enjoying a beach day with friends or setting off on a budget-friendly holiday.

While experiences can certainly cost more than things if you’re not careful, Gen-Z tend to invest in cheaper experiences regularly and not purchasing as many items as their older counterparts also mean that Gen-Z can live in smaller and less expensive apartments as they don’t need the additional space to store their items.

The younger generation has a healthy amount of skepticism when it comes to big companies and brands. Most of the time they would prefer to buy from local artists or businesses over the big guys which means they aren’t buying into marketing as heavily as older generations might have, hence spending and consuming less overall.

A study by the National Society of High School Scholars has shown that 35% of Gen-Z have started saving for retirement in their 20s, while another 10% started saving as teenagers. It’s no secret that this will set them apart from many members of older generations who put off thinking about planning for retirement until their 30s or who assumed their savings would be enough for a comfortable retirement.

You might have heard the Albert Einstein quote about compound interest being the “eighth wonder of the world” and Gen-Z certainly has time on their side in this case. Investing early and substantially will allow the younger generation a better chance at retiring early and comfortably.

Gen-Z has grown up watching the people around them struggle through a shaky financial landscape and understand that it’s up to them to become financially stable. Their self-reliant attitude toward the future means they’ve already become more careful with their money and grasp that the only way to live comfortably is to make their own way in the world.

They’re not waiting to win the lottery, hoping for a windfall from a rich relative, or walking around thinking the world owes them something. Instead, they’re banking on themselves to create the future they want.

Have you heard of the “loud budgeting” trend? It’s single-handedly one of the best social media finance trends to come out of this year. Loud budgeting basically means being loud and proud about the fact that you’re prioritizing getting your finances in order and saving money rather than spending frivolously.

Gen-Z no longer feel the need to impress their friends and colleagues with their material items; the younger generation doesn’t care about keeping up with the Joneses. Gen-Z doesn’t have a problem telling their friends that going out for dinner doesn’t fit into their budget this week and will happily suggest a cheaper activity that aligns with their financial goals.

Dismantling this external validation means that younger folks no longer need to be embarrassed if they make less or choose to live below their means and this shift in perspective is key to this generation having a healthier financial future.

The younger generation might seem more savvy than their older counterparts — and there’s a reason for that. Gen-Z cannot remember a time without social media and technology and while this certainly has its fair share of problems, it also means that the younger generation has access to a huge wealth of knowledge at their fingertips.

There are hundreds of social media influencers across platforms like YouTube and TikTok who distill financial basics and make it easy for younger folks to understand economics at a younger age. You’ll find a dozen YouTube videos that explain pretty much any aspect of budgeting, investing, and retirement planning that you might be wondering about, which makes it incredibly simple to learn and understand all aspects of finances without the commitment or barrier to entry of having to open a textbook or walk into a bank.