Forget the ‘good old days’: What Gen Z’s financial outlook means for brands
Opinion
Gen Z are making deliberate choices about how they spend and save. Understanding this financial mindset is key to staying relevant and building long-term trust with this group.
We’ve all heard the older generations reminiscing about a time when wages stretched further, pick-and-mix cost but a penny and home ownership felt within reach. The common refrain is that Boomers had it easier and that our young ones are struggling more than ever to save and achieve financial security.
However, new research from Advertising Week Europe and Cint has revealed a surprising twist in this familiar narrative.
While the majority of Boomers (currently aged 61-97) and Gen X (aged 45-60) lament that consumers are worse off today than they were 25 years ago, Gen Z (aged 13-28) bucked this trend as the only generation (62%) not believing those before them were better off.
In a time of economic uncertainty, rising costs and shifting consumer priorities, Gen Z’s optimism isn’t just a generational mood change but a fundamental, consequential shift in how younger consumers perceive financial wellbeing, spending and value.
For brands, understanding this evolving financial mindset is key to staying relevant and building long-term trust.
Diverging saving and spending priorities
Rather than echoing complaints about rising costs, the younger generation are making deliberate, value-conscious choices about how they spend and save. They are proving more financially disciplined than their older counterparts, with the research showing that while more than half (52%) of Gen X end the month with empty saving accounts, Gen Z and millennials are more able to squirrel away funds consistently.
However, what they’re saving for looks very different. While millennials still prioritise home ownership, Gen Z is more focused on investing in mobility and more affordable expenses, being more likely to save for a car than for property or retirement.
Brands should be tapping into this generation’s differing view of financial freedom in a changing economic landscape. Companies like Zipcar, for example, are already responding with flexible mobility solutions, while ClassPass and PureGym offer no-commitment fitness options that align with Gen Z’s shorter-term financial goals.
Those who listen to this generation’s diverging priorities and preference for financial accessibility will achieve a competitive edge.
The rise of everyday wellness
Further differentiating Gen Z is their spending habits.
Unlike older generations, who prioritise spending on travel and big-ticket experiences, Gen Z are more focused on enhancing their everyday lives. The research found that they are the only generation choosing to invest in health and wellness over the occasional holiday — opting for consistency over indulgence when it comes to experiences.
For brands, this reflects a broader shift in where Gen Z place value. Younger consumers want products that fit seamlessly into their daily routines while still delivering an elevated experience. Whether it’s skincare that feels like self-care, fitness apps or devices that integrate with their digital lives or food and drinks that align with their lifestyle goals, the key is positioning products and services as an ongoing investment in wellbeing rather than a one-off purchase.
We’ve already seen food and drink companies beginning to respond to this demand for wellness products, with brands such as Dash waters and XOXO’s prebiotic soda offering health-conscious alternatives to everyday beverages.
Brands that succeed in this space will be those that balance affordability with quality, offering products that shape health and wellness into convenient and accessible daily experiences. The challenge for companies is to create everyday essentials that feel aspirational — turning wellness from an occasional treat into a core lifestyle choice.
Redefining value for money
However, responding to these changing consumer demands doesn’t come without challenges.
Despite their optimism, Gen Z are still highly conscious of getting value for their money. The data reveals that, across all generations, there’s a shared perception that consumers are paying premium prices for economy-standard goods.
Although this sentiment is particularly strong among older generations, Gen Z also believe that the quality of goods has declined since the turn of the century, with food and drinks (60%) and clothing (41%) spotlighted as offering the worst value for money.
However, while this dissatisfaction is widespread, we know Gen Z’s expectations are different; that they are uniquely optimistic. Rather than surrendering to the widespread sentiment that consumers are worse off today, this generation demand more and expect brands will deliver on consumer preferences.
Across industries, this means striking the right balance between price, purpose and quality. Brands such as Uniqlo and The Ordinary have gained traction by mastering this act — delivering high-quality products at accessible price points.
With Gen Z not only having more disposable income at the end of the month but also being more likely to spend on everyday experiences, brands have an opportunity to position themselves as an affordable, indispensable part of daily lives — offering products that feel like small luxuries without the premium price tag.
Winning the next generation of consumers
Indeed, at Advertising Week Europe, we heard from brands, creators and industry leaders on the importance of forming long-term connections with consumers. Brands that succeed don’t just react to trends; they dig deeper, seeking to understand their audience’s evolving priorities.
Gen Z aren’t waiting for the economy to improve; they’re adapting their habits, redefining value and making deliberate choices about how they spend and save.
The brands that evolve with them, offering products that align with their shifting priorities — whether in mobility, wellness or affordability — will be the ones that earn their loyalty for years to come.
Katie Ingram is director of Advertising Week Europe