Despite an economic downturn and rising inflation, Gen Z spending hasn’t slowed down.

Despite an economic downturn and rising inflation, Gen Z spending hasn’t slowed down. YPulse research shows that 43% of young consumers say we are currently in a recession, and after months of not feeling there’s been improvement, their worry increased. Now, the economy is the fifth top social cause / issue they’re passionate about, and inflation is the top issue they say their generation is facing. But that hasn’t stopped them from shopping. According to data collected by Bloomberg, Gen Z are the biggest spenders among the U.S. adult population. While the reason for their fiscal flexing isn’t totally clear, there are two reigning theories. For one, the tight job market has created strong wage growth, especially for the entry level positions Zs are occupying. That plus a boost in savings due to the stasis of the pandemic means Gen Z may have extra cash to burn. But Gen Z is also a generation that would rather spend money than have it: a survey from Intuit found that almost three in four Gen Z would rather have a better quality of life than extra money in the bank. Meanwhile, YPulse’s Personal Finance and Spending report found that while Millennials are most likely to say they feel “worried” when they think about money, Gen Z says they feel “happy” and “excited,” indicating that their relationship with money may remain rosy—and spendy. (Bloomberg)