Gen Z is a generation that has grown up fast. Where Millennials and generations before them spent their teens and 20s relatively freely, enjoying life without much thought for the future, Gen Z have grown up to take a very different approach. 

Many Gen Zers have skipped the carefree phase - certainly financially speaking - and jumped straight into an adulthood state of mind when it comes to cash.

Why are Gen Z so frugal?

Huge world events like the pandemic and the 2008 market crash have shaped their mindset, making them more cautious and forward-thinking with their finances. 

Combine this with the fact that they have grown up with information available at their fingertips (and on TikTok) about investing and how expensive the world is now, and you get a generation that’s more intentional with their money, considering the long-term impacts of their choices in a way that previous generations didn’t have to until later in life.

These global shifts have redefined how they engage with the world around them. Socialising for Gen Z has become less about occasions - weekends, birthdays, Christmas - and more about finding joy in the everyday. 

Whether that’s grabbing a nice coffee on a Wednesday morning or participating in a local run club, this generation is all about making the mundane magical, often through the lens of social media, where they share their experiences with friends and followers.

Health-Conscious Choices 

As per the title of this piece, a lot of Gen Zers have swapped the habits of days gone by, such as hanging out in pubs all the time, for new ones, such as joining run clubs.

A defining characteristic of Gen Z is their heightened health consciousness, particularly when it comes to alcohol consumption. Fueled by their increased exposure to information about health from a young age, this generation is not simply living for the here and now. They are actively investing in their future, making choices that reflect a commitment to their mental and physical well-being.

As is often wrongly reported, Gen Z is not a sober or alcohol-free generation; they are just more intentional and less impulsive about their drinking habits.

Many choose to drink less or opt for lower-alcohol options, seeing these choices as proactive steps toward better health and well-being. Whether it’s choosing a non-alcoholic beer at a pub or opting for an evening run instead of a night out, Gen Z demonstrates a remarkable balance between enjoying social experiences and prioritising their health.

This focus on health extends beyond alcohol consumption too. Anti-ageing products, traditionally marketed to older generations (50+), are now becoming a major focus for both Gen Z and Gen Alpha (ages 12 and under).

‘Prejuvenation’ is a new key term being searched by these younger generations, which is all about prevention rather than cure.

It may seem crazy to think that children so young are even aware of skincare, but it shows how deeply the internet and social media have influenced their mindset.

Economic Pressures

Economic realities - particularly the sharp rise in house prices compared to income - have also impacted this generation’s spending habits significantly.

In the 1970s, house prices typically cost around 2-3 times the average income in many Western countries. By 2022, that ratio has surged to over 5.6 times the median income, making it increasingly difficult for young people to enter the housing market. 

This has pushed Gen Z to adopt more cautious spending and saving habits than previous generations, influencing their focus on long-term well-being rather than carefree living.

Romanticising the Everyday

Gen Z love to capture small moments in real-time, creating content that celebrates the small joys of life.

Whether it’s documenting a run through a local park or sharing a cozy brunch with friends, these experiences are not just personal but communal, building a sense of connection and shared experience.

Documenting their everyday lives through social media provides validation from their peers and followers. It makes them feel seen, as if their lives matter in a fast-moving world.

Sharing their daily experiences online not only helps them feel connected but also reassures them that they aren’t alone, as others interact with and acknowledge their posts.

Conclusion

Gen Z’s spending habits reflect a broader cultural shift towards valuing everyday experiences over traditional milestones. Their health-conscious choices, particularly regarding alcohol, illustrate a commitment to both mental and physical well-being.

By understanding this trend, you can effectively engage with this generation, creating meaningful connections that resonate on a deeper level.

The rise of run clubs, community events, and the celebration of the mundane are not just passing trends; they represent a new way of living and spending that is here to stay. As we move forward, those who adapt to these changes will find themselves well-positioned to connect with a generation that is redefining the art of socialising.