Two-thirds of Gen Z Swap Future Savings for Socialising

• 66% of Gen Z aren’t currently contributing to a pension

• 40% Gen Z are spending more on socialising and dining out (41%) whilst all other generations are cutting back

• 1 in 5 Gen Z are intentionally spending more now than they were three years ago (17%)

Soaring inflation, steep rent and a brutal job market might be forcing most Brits to tighten their belts, but Gen Z are rewriting the rulebook, sacrificing their long term savings to enjoy the present, according to new research.

The Gen Z Spending Report by the UK’s leading discount site, VoucherCodes.co.uk, reveals two-fifths of Gen Z admit to spending more on socialising (40%), dining out (41%), and pubs and nightlife (31%) than they were three years ago, while all other generations cut back to accommodate for the cost of living squeeze. 

Although the cost of living plays a role in Gen Z’s increased spending (26%), they’re also the most social demographic, with almost one in five admitting to intentionally spending more on socialising now than they did three years ago (17%) - almost double the national average (9%). Despite facing arguably the toughest economy in decades a further 17% are upgrading their social plans, opting for more expensive activities. 

Figure 3: Why are Brits spending more than they were three years ago?

All of this has a knock-on effect on Gen Z’s ability and willingness to put money aside for the long term. A staggering two-thirds of Gen Z aren’t currently contributing to their pensions at all (66%), compared to just half of Gen X and Millennials (50%). While 27% of Gen Z have contributed in the past, they’ve since stopped to make room in their budget for other priorities amid rising prices. 

Those that are saving are often prioritising short-term goals, such as weddings, house-buying, and cars instead of pensions (17%), which are more pressing and arguably more attainable - that’s almost double the national average (10%). 

Savings Expert at VoucherCodes.co.uk, Thrifty Clair, adds: “As our data shows Gen Z are rewriting the rulebook when it comes to spending and saving. Despite the ongoing cost of living crisis, they’re refusing to give up their social lives, finding room in their budgets to enjoy experiences with friends.  

“But, just because Gen Z are spending more than their older counterparts, doesn’t mean they’re throwing all financial responsibility out of the window. They’re often hacking the system, opting for ‘pre-drinks’ before a night at the pub (39%), and using discount sites, like VoucherCodes.co.uk, almost seven times a month to stretch their paychecks as far as possible.  

“The key to success is balance and budgeting. While we’re all for making memories with friends in the here and now, it’s important this doesn’t come at the expense of financial wellbeing later in life.”

Source : VoucherCodes.co.uk

Image : shutterstock / Rawpixeldotcom / 1100446520

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