Many Gen Zers frequently indulge in “treat culture,” rewarding themselves with small purchases like snacks or conveniences as a form of self-care, coping, and positive reinforcement. While these little luxuries offer comfort and are often justified as necessities, nearly 60% of Gen Z admit it leads to overspending. Treat culture isn’t unique to Gen Z, but this generation has mainstreamed it to a daily practice.
Reminder – wealth is created by earning, saving and investing. Wealth is not created by spending.
Despite a lack of income, Gen Z finds ways to reward themselves frequently: 57% buy themselves a small treat at least once a week, according to a Bank of America report from late July.
But for nearly 60% of Gen Zers, this leads to overspending, “making little treats a slippery slope,” according to the report. Yet, the generation has shared in droves on social media about the little ways they’re treating themselves, whether it’s buying a simple ice cream cone or splurging on a new clothing haul.
Note the role social media influencing plays in creating excess spending.
After Covid nonsense, many of us realized that saving for a future that may never come doesn’t make sense either, so we understand the motivations.
Of course, the “lack of income” claim is questionable as many surveys show the average Gen Z has a higher income than preceding generations at the same ages (reminder – Gen Z spans age 13-28, average age of 21, in 2025 – when the media references Gen Z they are not talking about the 65% who are still very young).
Those at the leading edge of this age group are faced with out-of-line housing costs, which may be temporary – income/housing cost ratios are likely to regress to the long-term trend. Unfortunately, life restrictions led to unusual house buying patterns, and Biden’s printing of money during Covid (M2 up 42%) led to inflation
