Gen Z Boosts Spending Across All Income Brackets on Travel and Cosmetics
Updated
Updated · Marketplace · Aug 5
Gen Z Boosts Spending Across All Income Brackets on Travel and Cosmetics
3 articles · Updated · Marketplace · Aug 5
Summary
Bank of America data shows Gen Z is spending more across every income bracket, defying the usual K-shaped pattern in which higher earners recover and spend faster than lower-income peers.
Travel, coffee, cosmetics and jewelry are among the categories rising, with the bank describing the behavior as “little treat spending” rather than a pullback to essentials.
Pandemic habits, social media pressure and a YOLO mindset are driving that spending, as many young adults doubt traditional milestones such as retirement, Social Security or homeownership will be attainable.
Even with a weak entry-level job market, researchers say Gen Z remains unusually optimistic because gig work offers a perceived backup income stream and an emotional safety net.