Somedays get tough and instead of going for a "dopamine detox" and trying to take a pause to calm ourselves down, we take the opposite route. We go out to treat ourselves, but if it is too late, we end up making ourselves some overpriced ramen or maybe an online shopping spree. This is the "treat culture" Gen Zers are now indulging in.
Gen Z is defined as anyone born between 1997 and 2012 (currently aged 13 to 28), and they are sandwiched between the millennials and Gen Alpha. Although millennials are also notorious for their avocado on toast and Starbucks spending, Gen Z might be spending more.
They tend to reward themselves with small purchases like snacks or conveniences or both as a form of self-care and positive reinforcement. In fact, 57% buy themselves a small treat at least once a week, according to a Bank of America report from late July. While it is great from the perspective of consumer spending, it is not so great from the perspective of savings for the future.
Although these small indulgences provide comfort and are often seen as essentials, nearly 60% of Gen Z admit they contribute to overspending. Treat culture isn’t exclusive to Gen Z, but this generation has turned it into an everyday habit.
Even though Gen Z invests, they also reward themselves with a concert ticket or book a flight for a trip every once in a while.
A recent NielsenIQ report states that Gen Z is on track to become the largest, wealthiest, and highest-spending generation in history.
By 2030, their total spending will reach $12.6 trillion or 18.7% of global spend, potentially reshaping markets and consumer preferences.
This could be due to their focus on convenience and influence from social media, among other reasons. Many also cite cost of living as a big issue to bigger purchases like houses, so they prefer to splurge on smaller goods and everyday items instead.
It could be keeping us broke in circumstances where we are paying for items way out of our budget consistently just to keep up appearances. Next time you go for a "treat," ask yourself: do you really need it, and if so, will you still need it a few hours and days later?