Yahoo Finance These Are the Top 5 Expenses Gen Z Is Splurging On in 2024
In Feb. 2024, McKinsey & Company published their most recent findings from their ConsumerWise team regarding the state of U.S. consumer sentiment. One of the many areas of focus in the study was what percentage of each generation intended to splurge over the next three months.
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Overall, the research showed that younger and wealthier consumers, particularly those in Generation Z, are intending to splurge in 2024. In fact, across all generations, Gen Zers indicated they were most likely to splurge, at 61%.
This compares with 56% of Millennials, 34% of Gen Xers and just 19% of Baby Boomers. Seventy percent of Gen Zers responded that they are likely to splurge, vs. 60% of middle-income earners and 55% of those with low income.
The specific question McKinsey & Company asked survey participants was, “With regard to products and services you will spend money on, do you plan to splurge/treat yourself over the next 3 months? For example, are there categories of products or services where you expect to make more expensive purchases than normal or purchase something to ‘treat’ yourself?”
Here are the top five categories identified by Gen Zers as areas where they plan to spend more than usual in 2024.
Groceries
Percent of Gen Z respondents with intent to splurge: 38%
The area in which the greatest percentage of Gen Zers planned to splurge was groceries. This was right in line with other generations in the survey, as it was the top response overall by 37% of respondents. Baby boomers were the least likely to make this their first choice, at just 29% of respondents.
The desire to splurge on groceries could potentially be seen as a response to the rising costs of eating out. By splurging on groceries, respondents could enjoy higher-quality meals at home for the same price or even less than going out.
For example, one-pound of Chilean sea bass, which should serve at least two people goes for about $25 at Costco, would likely cost more than double that at a restaurant.
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Beauty and Personal Care
Percent of Gen Z respondents with intent to splurge: 37%
For Gen Zers, beauty and personal care is right behind groceries when it comes to where they intend to splurge. This category in general is a common splurge, as the sky’s the limit when it comes to the cost of certain beauty routines.
However, Generation Z is by far the most likely to splurge on beauty and personal care. Across all generations, it is just the fourth-most popular option, with a 31% response rate.
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Apparel
Percent of Gen Z respondents with intent to splurge: 37%
A wardrobe upgrade is high on the list of things to splurge on for many Americans, but it’s most popular among Gen Zers. Across all generations, 31% of respondents indicated they wanted to splurge on clothing, but that percentage is 6% higher for Gen Z.
Restaurants, Dining Out, Bars
Percent of Gen Z respondents with intent to splurge: 34%
Going out to eat and drink has always been something of a special occasion, and 34% of Gen Zers intend to splurge in this area in 2024. But this was actually lower than the 36% of respondents across all generations that selected it, making it the 2nd-favorite overall.
This category was the top choice among both Baby Boomers and Gen Xers, at 38% and 39% respectively.
Home Electronics
Percent of Gen Z respondents with intent to splurge: 29%
Overall, home electronics was only selected by 24% of respondents, making it the 7th-top choice, but for Generation Z, it ranks #5.
By way of comparison, only 22% of Generation Xers and just 12% of Baby Boomers selected home electronics as a splurge category. This makes sense, as older generations are traditionally not as focused on the latest and greatest technology.
Millennials, who are closer in age to Gen Zers, responded in a similar fashion, with 28% indicating they intended to splurge in this category.
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This article originally appeared on GOBankingRates.com: These Are the Top 5 Expenses Gen Z Is Splurging On in 2024
