Shifts in spending habits often reveal deeper societal priorities and economic trends, and Gen Z is no exception. This generation, born between the mid-1990s and early 2010s, is redefining consumer culture as they come of age in a world marked by economic uncertainty, rising inflation, climate change, and rapid technological evolution. According to a report by the McKinsey Global Institute, Gen Z has a purchasing power of over $360 billion in the U.S. alone.
Yet, its values and priorities are driving significant changes in the market. Intrigued by this new way of saving and spending, we asked Gen Z what they’ve cut from their budgets. The results unveil a significant cultural shift toward mindful and value-driven purchasing. Here are 16 things this generation has stopped buying altogether.
New Cars
Car ownership among younger generations has dropped significantly in recent years, signaling a shift in priorities and lifestyles. Gen Z, in particular, points to rising costs, including purchase prices, maintenance, and insurance, as well as growing environmental concerns, as primary reasons for moving away from traditional car ownership.
A 2022 survey by J.D. Power revealed that only 19% of Gen Zers prioritize buying new cars, a sharp contrast to previous generations. Instead, many choose alternatives like public transportation, ridesharing apps such as Uber and Lyft, or purchasing pre-owned vehicles to cut costs.
Fast Fashion
Eco-consciousness is steering this generation away from fast fashion brands. Research by First Insight and the Baker Retailing Center at Wharton found that 62% of Gen Z prefer shopping sustainably, even if it costs more.
Thrifting and buying from sustainable brands like Reformation or Patagonia have become popular for this generation.
Gym Memberships
During the pandemic, at-home fitness solutions like YouTube workout videos, Peloton, and smartphone fitness apps surged in popularity as people looked for creative ways to stay active while gyms were closed. This shift changed how people exercised during lockdowns and reshaped long-term fitness habits.
The trend remains particularly strong among Gen Z, who often prioritize flexibility and cost-effectiveness in their workout routines. Many in this generation prefer outdoor activities, such as running, hiking, or yoga in the park, alongside free or low-cost workout options like app-based programs, instead of committing to traditional gym memberships.
Expensive Dining Out
Dining habits are also shifting. Research by Piper Sandler reveals that Gen Z tends to spend less on traditional sit-down restaurants than millennials. Instead, they gravitate toward fast-casual dining options, which offer quicker service and more affordable prices without sacrificing quality.
Additionally, many Gen Z individuals cook meals at home, a trend driven by a desire to save money and adopt healthier, more sustainable eating habits.
Alcohol and Tobacco
Health-conscious living has become a defining trait of Gen Z, shaping their habits and lifestyle choices. Unlike previous generations, Gen Z is significantly cutting back on drinking and smoking, with many prioritizing their physical and mental well-being.
According to the American Psychological Association, this shift has contributed to a steady decline in alcohol and tobacco sales. This trend reflects a broader movement among Gen Z toward mindfulness, fitness, and healthier alternatives, as they actively seek to reduce harmful habits and embrace a more balanced approach to life.
Expensive Beauty Products
Affordable, ethical, and clean beauty brands like The Ordinary and e.l.f. have become staples in Gen Z’s makeup bags, reflecting their preference for quality products at accessible prices. This shift highlights a growing trend among younger consumers to prioritize value and ethics over luxury.
A report from Bluestocking Data reveals that expensive beauty products account for less than 10% of Gen Z’s overall beauty and skincare spending. This marks a stark departure from millennial habits, where premium brands often held greater appeal. Gen Z’s focus on affordability and transparency reshapes the beauty industry, pushing brands to adapt to their unique preferences.
Traditional Banking Services
Digital wallets like Venmo, PayPal, and Apple Pay are quickly overtaking traditional banking services, especially among Gen Z. This tech-savvy generation values faster, more seamless, and mobile-friendly financial solutions that fit their on-the-go lifestyles.
Unlike traditional banks, these fintech platforms offer instant payments, easy transfers, and user-friendly interfaces that appeal to younger users. According to the Cornerstone Advisors Tech Chronicles, an impressive 60% of Gen Zers now rely on fintech platforms for their banking needs, signaling a clear shift in how this generation manages their money.
New Electronics Frequently
While older generations might upgrade their gadgets annually, Gen Z takes a more frugal approach. Many keep their electronics longer or purchase refurbished models to save money.
A Counterpoint Research study highlights how refurbished smartphone sales soared by 16% in 2022, driven by environmentally and budget-conscious buyers.
High-End Jewelry
Flashy jewelry no longer carries the same appeal. Instead, Gen Z invests in meaningful pieces over expensive, high-end accessories. Minimalist designs from brands like Mejuri and Ana Luisa resonate with this generation because they’re affordable and stylish.
Travel and Vacations
Younger Gen Z consumers are cutting back on extravagant travel due to financial constraints, opting for more budget-friendly alternatives. A survey by Skyscanner found that this generation is increasingly prioritizing staycations or local experiences that fit within tighter budgets.
Instead of splurging on luxury vacations, they explore nearby destinations, enjoy day trips, or engage in affordable activities like hiking, local food tours, or cultural events.
Paper Books
Gen Z’s preference for digital formats affects even their reading habits. According to Pew Research, more than 30% of young adults prefer e-books or audiobooks to physical copies.
Library borrowing also remains popular, reducing the need to purchase paper books.
Subscription Boxes They Don’t Use
While Gen Z loves the convenience of subscriptions, they’re not afraid to cancel services that don’t provide enough value. According to Statista, 29% of 18-34-year-olds, including Gen Z, canceled at least one streaming service within three months.
The primary reason cited was unnecessary costs, with many respondents stating they’re becoming more selective about where they spend their money. As subscription options grow, this trend highlights the importance of companies offering tangible value to retain younger audiences.
Print Newspapers and Magazines
Digital-first habits have drastically transformed how this generation consumes information, leading to the near extinction of traditional print media. A Pew Research analysis reveals that nearly half of Gen Z now get their news primarily from social media platforms such as Instagram and TikTok rather than purchasing newspapers or magazines.
These platforms offer quick, bite-sized updates and visually engaging content, perfectly aligning with younger audiences’ fast-paced, mobile-driven lifestyles. As a result, the shift away from print media reflects changing technological preferences and a broader evolution in how news is delivered and consumed in the digital age.
Luxury Retail Items
High-end fashion brands are seeing a notable decline in popularity among young consumers. According to ICSC, 48% of Gen Z survey respondents prefer shopping at discount and off-price retailers, making them the top choice among retail categories.
Instead, they favor affordable fashion from platforms like ASOS or secondhand shopping on apps like Depop. The appeal of staying fashionable without breaking the bank, combined with a growing focus on sustainability, has made resale platforms a go-to option for Gen Z shoppers.
Cable TV Subscriptions
Streaming services have dominated Gen Z’s entertainment preferences, overtaking traditional cable TV. According to Deloitte’s Digital Media Trends report, 60% of Gen Z consumers subscribe to at least four streaming platforms.
Cost-effective options like Netflix, Hulu, and YouTube dominate their screens, offering flexibility, no long-term contracts, and curated content over traditional programming.
Single-Use Plastics and Disposable Items
Gen Z’s values significantly shape their spending habits, with sustainability being a top priority. Reusable water bottles, metal straws, and tote bags have become staples for this generation, replacing single-use plastics and reflecting their commitment to reducing waste.
Their focus on environmental impact is further highlighted by a survey from First Insight, which found that 73% of Gen Z are willing to pay more for sustainable products. This willingness to invest in eco-friendly options underscores their dedication to creating a greener future and influencing brands to adopt more sustainable practices.
Disclaimer – The Finance key does not provide and does not intend to provide financial, investment, tax, or legal advice. Information contained in this article is for informational and educational purposes only. This list is solely the author’s opinion based on research and publicly available information. Including links to third-party content is not an endorsement by The Finance Key of such content or services. Please do your due diligence and use your discretion.
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