Generation Z does not have the weight of the most recurring financial charges, such as insurance or mortgages, so they allocate their income to "affordable pleasures".

2022 was a year marked by rising prices, inflation, the outbreak of the Ukrainian War, and more events that made “permacrisis” the word of the past year. But even in this reality, Generation Z consumers, raised between the economic crisis of 2008 and this new panorama, spend more than they earn, and do not skimp on spending on goods and services that are not essential.

In the current scenario, consumers have changed, adapting their consumption habits to face the increase in prices, but as pointed out by El Mundo, in the last year the spending of young people in bars, restaurants, trips or clothes practically doubles the rate of the Consumer Price Index.

In this sense, José Luis Nueno, writer of Everything is terrible, but I am fine, points out that "older citizens are more cautious in their investments, while young people, who are part of this consumer in 'permacrisis', continue to spending in categories such as cheap clothes, bars and restaurants, entertainment or low-cost travel ».

Between the first quarter of 2022 and the same period this year, inflation picked up to 5.5%, while younger consumer spending on goods and services increased. Categories such as clothing and footwear (10.2%), restaurants (10%), travel and hotels (9%) or flights and car rental (28.7%) are some of those that show a greater increase among this generation of consumers.

Generation Z does not give up goods and services that are not essential

The members of Generation Z become the new mass of consumers in the midst of a complicated economic context. But this reality is paradoxical, since according to Nueno's analysis of surveys carried out in Germany, France, Italy, the United Kingdom and Spain, 48% of those surveyed assure that they will cut their spending in categories such as bars and restaurants, clothing ( 40%) or leisure (38%). But the reality is that spending skyrockets mainly in these categories.

Nueno points out that this behavior of younger consumers may be a consequence of their pessimism in relation to the low possibilities of becoming independent, creating their own home or starting families. "Without long-term projects that may require savings, they allocate their budget to more affordable expenses," says the professional.

The professional points out that since the youngest do not feel "the weight of the most recurring financial burdens, such as insurance or mortgages", they allocate their income to other types of "affordable pleasures" that they can afford.

In this sense, there is a growing need for disconnection on the part of consumers, that is, people want to escape from the normality marked by the permacrisis, through experiences such as trips or gastronomic experiences, according to the results of the report "The Future 100 » by Wunderman Thompson Presents.
Spending goes up, saving goes down

This is a trend that coincides with the results of the AECOC Shopperview report, which indicates that, although the economic situation of half of Spanish households has worsened, consumers do not give up certain expenses.

According to the report, 35% of those surveyed spend the same or more than last year in categories such as leisure, entertainment, culture and travel, while 16% of those surveyed affirm that the number of premium or gourmet products they purchase has increased . For their part, 61% of them assure that they continue to go out to bars and restaurants the same or more than in 2022.

The study takes as reference a consumer with an average salary of 19,817 euros per year. And he calculates that his expense amounts to 22,598 euros. Therefore, the difference between income and expenses is paid with savings, credit or the help of the family network.

From El Mundo they point out that this reality occurs in a context in which salaries have increased by 5.4% but inflation has risen by 5.5% in the same period. In this way, "salary improvements have lagged behind inflation," as Nueno points out, and for this reason almost half of the population feels impoverished.

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