Forty-one percent of Gen Z claim to save more money than they spend, while 36% reportedly spend more than they save, ICSC’s latest research shows.
The majority of Gen Z’s proclivity toward saving more money comes at a time of economic difficulty, with 84% of older Gen Z consumers, aged between 23 and 26 years old, expressing concerns about the U.S. economy, surpassing the 71% of 16- to 17-year-olds who shared the same sentiment.
Gen Z’s interest in being more financially responsible has come even as their self-reported income has climbed by 2% compared to the previous year.
It is worth noting that even though more Gen Z consumers are looking to save, most have been struggling. A September 2022 report from Bank of America found that 73% of Gen Z consumers found it difficult to save money due to the economic environment. Additionally, 56% of them expressed increased financial stress due to inflation.
Gen Z consumers might be becoming more money conscious but still expect a seamless shopping experience. Meaning brands and retailers cannot slack. Specifically, 46% of the Gen Z respondents emphasized the significance of a seamless checkout process, closely followed by fast shipping (45%) and immediate in-store availability (39%).
Furthermore, 31% of the respondents emphasized the significance of free returns, while quick and helpful customer service (27%) was deemed essential to enhance their shopping experience.
Checkout experience aside, social media continues to play an outsized role in Gen Z’s shopping behaviors, with 85% saying it influences their purchasing decisions.
Considering Gen Z’s strong dependence on platforms such as TikTok and Instagram, certain well-established brands have redirected their focus toward social media marketing to appeal to Gen Z shoppers instead of distributing their budget across more traditional channels.
Some other factors that significantly influence Gen Z’s decision-making include the influence of friends and family, cited by 56% of the respondents. This was followed by the impact of product reviews (54%) and the influence of third-party review websites and forums (47%).
