3 Gen Z Money Trends to Know in 2024

Not so long ago, the Financial Independence, Retire Early (FIRE) movement was in full force. It was all about earning more, saving aggressively (as much as 50-70% of income), and retiring much earlier (in your 40s or even 30s)! 

But it looks like this simple living, high-saving strategy is losing steam amongst young adults, especially Gen Z (those born between 1997 and 2012). 

With 4 out of every 5 adults stating they’ve never received a personal finance education in school, is it any wonder that young people are starting to explore their own money management strategies–some of which are incredibly damaging long-term. 

With the help of viral Instagram and TikTok challenges, here are the 3 latest money trends Gen-Zers are drooling over in 2024. 

‘Soft Saving’ Trend is Emerging

Ask your grandma for money management tips, and she will probably tell you “pay your bills and debt, have an emergency fund, and save for retirement.”

But this traditional financial wisdom is losing popularity with the younger generation, which is taking a new approach to saving. It’s called soft saving. Simply put, they’d rather spend more of their money on the present, and less on the future. 

According to an Intuit report, 3 in 4 Gen Zers would rather have a better quality of life than extra money in their banks.

They are looking for a ‘soft life’ without having to worry about earning enough to save, build emergency funds, or plan for retirement, which is ‘years away.’ They take each day as it comes! Life is too short to worry about tomorrow and retirement is an eternity away.

So, in practical terms, SOFT SAVING = NO SAVING!

We understand their frustration with saving! With lasting effects of the COVID-19 pandemic along with rising inflation and interest rates, saving in today’s economy is harder than it used to be and millions are struggling to cover basic expenses. 

But here’s the reality. Living a YOLO life will catch up with you. The future always comes. And it won’t feel like you’re living your best life when you have no money for emergencies, which we promise are coming. 

Things happen, and it’s okay to take a break here and there to recharge and get stabilized. But, as we at uThrive Academy keep repeating, you can’t avoid saving money and still hope for financial freedom. The math will never add up.

‘Doom Spending’ is surging

Couple low personal savings rates with this next trend, doom spending, and you have a recipe for disaster. With lingering wars and a struggling economy, the feeling of being out of control of their financial future is pushing Gen Z to swipe their credit cards like the world is crashing down tomorrow. 

A survey by Credit Karma stated that 35% of Gen Zers admitted to doom spending, compared with only 21% of Baby Boomers. A sense of helplessness and uncertainty is making them hesitant to set long-term money goals. Two-thirds of young people think they will never have enough money to retire, so why start? After all, as the Titanic was sinking, the band kept playing. 

Instead they are looking to purchase their way out of their economic insecurity as a coping mechanism. And no, this isn’t just retail therapy. If retail therapy is a baby raccoon, doom spending is a full-grown hippo. Don’t believe me? 41% of Gen Zers bought a luxury watch in the last year, which averaged over $10,000!! 

TikToker and a member of Gen Z Maria Melchor (@firstgenliving) appropriately explained doom spending when she said: 

"When houses are a million dollars plus and an older couple will likely outbid us anyway, we're gonna relinquish any lingering delusions about homeownership and instead use that money to give our dogs the most enriched puppyhood they can have."

But here’s a question for you. What happens 5 or 10 years from now when you’ll most likely still be on this Earth–and with a huge debt load? No matter how hard things are, it could always be worse, and it will be if you keep doom spending. That euphoric feeling of owning a luxury watch will have long worn off by then. 

I know, it’s annoying to hear the truth, but that’s why we’re here–because we care about your future!

And here comes the savior: loud budgeting 

While soft saving and doom spending are born out of fear and money myths, loud budgeting is Gen Z’s smart invention. Kudos! 

Loud budgeting involves vocalizing your budget instead of keeping it private. The aim is to announce your money goals in front of your friends and family, so you don’t feel stressed about hiding debt or embarrassed about cutting social spending. 

So, the next time your friend insists on going to a movie and dining out, you can simply say, “Look, I am trying to save money for a course - so my budget doesn't allow me to shell out $100 this month. Why don’t you come over and watch Netflix at my place?”

Loud budgeting is a great antidote to shortsighted ‘soft saving’ and ‘doom spending’ trends.  

It aims to normalize self-control and spending limits, which we think is a great trend. Let’s keep it up and share our financial goals out LOUD so we can be accountable to one another. It might not be as sexy as a new luxury watch, but those that do it will be much better off long-term because there’s no shortcut to saving and building wealth. 

While budgeting, saving, and investing can sound intimidating, we have a tangible roadmap to help you get started. At uThrive Academy, we have a proven strategy to help young adults achieve their financial goals. We cover practical strategies for young people to achieve financial success in just 6 modules. Check out the course below!