{"id":15885,"date":"2021-01-19T08:16:00","date_gmt":"2021-01-19T08:16:00","guid":{"rendered":"https:\/\/codeandpepper.com\/?p=15885"},"modified":"2022-05-27T13:43:25","modified_gmt":"2022-05-27T13:43:25","slug":"what-does-generation-z-spend-their-money-on","status":"publish","type":"post","link":"https:\/\/codeandpepper.com\/what-does-generation-z-spend-their-money-on\/","title":{"rendered":"What Does Generation Z Spend Their Money On?"},"content":{"rendered":"\n<p>Imagine you could change the world with a single act. A brief moment, a statement that changes the landscape for generations to come. And it\u2019s not an act of desperation but rather convenience. It\u2019s not a political statement but a consumer one. This is how Generation Z takes us to the world of cashless and instant-response society with a simple act of tapping the \u201cPay now\u201d button. What do these people need and pay for, <strong>what are Generation Z&#8217;s spending habits<\/strong>?<\/p>\n\n\n\n<!--more-->\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/codeandpepper.com\/wp-content\/uploads\/2020\/11\/What-Does-Generation-Z-Spend-Their-Money-On2.jpg\" alt=\"What Does Gen Z Spend Their Money On\" class=\"wp-image-21945\" width=\"864\" height=\"450\" srcset=\"https:\/\/codeandpepper.com\/wp-content\/uploads\/2020\/11\/What-Does-Generation-Z-Spend-Their-Money-On2.jpg 864w, https:\/\/codeandpepper.com\/wp-content\/uploads\/2020\/11\/What-Does-Generation-Z-Spend-Their-Money-On2-300x156.jpg 300w, https:\/\/codeandpepper.com\/wp-content\/uploads\/2020\/11\/What-Does-Generation-Z-Spend-Their-Money-On2-768x400.jpg 768w, https:\/\/codeandpepper.com\/wp-content\/uploads\/2020\/11\/What-Does-Generation-Z-Spend-Their-Money-On2-361x188.jpg 361w, https:\/\/codeandpepper.com\/wp-content\/uploads\/2020\/11\/What-Does-Generation-Z-Spend-Their-Money-On2-192x100.jpg 192w, https:\/\/codeandpepper.com\/wp-content\/uploads\/2020\/11\/What-Does-Generation-Z-Spend-Their-Money-On2-720x375.jpg 720w, https:\/\/codeandpepper.com\/wp-content\/uploads\/2020\/11\/What-Does-Generation-Z-Spend-Their-Money-On2-432x225.jpg 432w\" sizes=\"auto, (max-width: 864px) 100vw, 864px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-generation-z\">What is Generation Z?<\/h2>\n\n\n\n<p><strong>Gen Z\u2019s buying habits are driven by their digital native nature.<\/strong> Researchers and media mark the mid-1990s as the start (birth) of this generation and the early 2010s as the closing margin. Children born within this period are concerned about their professional and financial situation and don&#8217;t engage with a risky life. They are focused on what matters, what\u2019s edgy and \u201cnow\u201d. Generation Z can be described as heavy users of electronic gadgets and light users of books. But above all else, they want to shop: the faster and easier, the better.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-generation-z-in-numbers\">Generation Z in numbers<\/h3>\n\n\n\n<p><a href=\"https:\/\/www.paysafe.com\/en\/lost-in-transaction-gen-z-expectations-at-the-checkout\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">The PaySafe\u2019s report<\/a> states that:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>40% of consumers in the Gen Z category have made at least one in-app payment, 15% make in-app payments on a regular basis.<\/li><li>34% of Gen Z consumers have used a mobile wallet, 14% use it regularly.<\/li><li>8 in 10 Generation Z\u2019s members still use cash but at the same time, 53% of them prefer stores accepting contactless payments.<\/li><\/ul>\n\n\n\n<p><a href=\"https:\/\/www.businessinsider.com\/retail-courts-gen-z-spending-power-over-140-billion-2020-1?IR=T\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">According to Business Insider<\/a>,<strong> Generation Z has a purchasing power worth $143 billion.<\/strong> With that much firepower, they can buy whatever and whenever they like. And they do, with an almost complete mobile-only approach to life. Many consumers of this era have grown up in households with limited budgets. They still remember their families gathered around the dinner table, trying to figure out what to do and how much money there is to spend. Naturally, it\u2019s all a reminiscence of the US economic crisis of 2008. But it\u2019s not only the Americans who were affected, it\u2019s the whole world.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-gen-z-has-a-class-requirements\">Gen Z has A-class requirements<\/h3>\n\n\n\n<p>Because of that, these young people view the world as one big bubble of economic potential. Money is important, a good job leads to good money and a good education leads to a good job. That\u2019s the logic they follow. Concerns for financial stability drive Generation Z\u2019s shopping habits. Baby boomers, Millennials and other previous generations went through various turmoils but they didn\u2019t have technological opportunities to deal with them. Generation Z is different.<\/p>\n\n\n\n<p>Their spending power lies in a deep conviction of what they want and when. If they want a product, they buy it, and with the assistance of a processing power\u2019s application. Why? Because high-street banks don\u2019t offer them individual customer care and attention. And individual wealth is what this group values above all else.<\/p>\n\n\n\n<p>Generation Z is saving money for education to get a high-paying job and assume responsibly. <a href=\"https:\/\/blog.hubspot.com\/marketing\/millennials-vs-gen-z\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Millennials<\/a> might be an educated age group but <a href=\"https:\/\/www.pewsocialtrends.org\/2018\/11\/15\/early-benchmarks-show-post-millennials-on-track-to-be-most-diverse-best-educated-generation-yet\" rel=\"nofollow\">Gen Z<\/a> is about high-quality education.<\/p>\n\n\n\n<p>That\u2019s not all\u2014this new demographic wants experiences but of a new kind. <a href=\"https:\/\/forbusiness.snapchat.com\/blog\/the-youth-of-the-nations-global-trends-among-gen-z\" rel=\"nofollow\">According to Snap Inc. and GlobalWebIndex<\/a>, Gen Z values experiences even more than Millennials. There\u2019s a catch, though\u2014they have to be meaningful. A local art gallery? Sure. A break from social media? Definitely. An occasional travel? Yes, but as a vehicle to know more about themselves and the world, which brings us to the issue of spending habits.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-generation-z-spending-habits-navigating-the-waters\">Generation Z spending habits: navigating the waters<\/h2>\n\n\n\n<p>Gen Z favour products and services that help navigate pain points, leaving money for experiences and enjoying life. That\u2019s why statistics about personal wallets and mobile banking are so true and make sense in the broader context.&nbsp;<\/p>\n\n\n\n<p>Gen Z value brand credibility over colourful photos and statements. They want practical solutions and advice. Especially since over 50% of them <a href=\"https:\/\/everfi.com\/blog\/financial-education\/how-gen-z-thinks-about-financial-literacy\" rel=\"nofollow\">don\u2019t have basic knowledge<\/a> about financial planning. What can FinTech companies do to help?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-fintech-focus-on-gen-z\">FinTech focus on Gen Z<\/h3>\n\n\n\n<p><a href=\"https:\/\/codeandpepper.com\/\">FinTech product development<\/a> for Gen Z is about the creation of an app that serves both as a personal wallet and a mobile advisory board. <strong>Most of Gen Z members don\u2019t know how to efficiently spend and invest money. <\/strong>83% of the Gen Z demographic want to <a href=\"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2018\/09\/04\/more-optimistic-than-millennials-gen-z-is-here-to-revolutionize-the-housing-market\/\" rel=\"nofollow\">buy their first house by the age of 30<\/a>. However, under current economic conditions this can be challenging, even with a great education.<\/p>\n\n\n\n<p>That\u2019s why <a href=\"https:\/\/codeandpepper.com\/services\/open-banking\">open banking<\/a> for Gen Z can act as a personal banking and mentoring service. Mobile payments are very important but with over <a href=\"https:\/\/www.cnbc.com\/2018\/08\/13\/gen-z-already-owes-4300-dollars-in-debt-and-cant-even-legally-drink.html\" rel=\"nofollow\">$4,000 in debt<\/a>, these young adults will struggle to secure their dreams about a house. Traditional banking has already spotted this and created a solution that can win Gen Z clients over. <a href=\"https:\/\/www.cbc.ca\/news\/canada\/toronto\/hsbc-introduces-pepper-the-robot-promising-fun-efficiency-and-job-growth-1.5261812\" rel=\"nofollow\">HSBC has introduced<\/a> Pepper the robot: a humanoid acting as a conversational banking representative. It can be programmed to deliver marketing content while engaging students on campuses. FinTech companies can use it as a powerful communication tool and transform it into a virtual financial assistant in their apps.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-gen-z-is-transforming-digital-banking\">Gen Z is transforming digital banking<\/h3>\n\n\n\n<p><a href=\"https:\/\/www.fintechnews.org\/gen-z-is-defining-digital-banking-fintech-is-listening\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Fintech News has conducted a single-question survey<\/a> to learn what Gen Zers are all about. Apparently, they appreciate a physical branch of a bank but mostly rely on digital banking. Their money management could use some help and many of them wish to develop healthy spending habits. The most interesting part applies to their FinTech banking expectations.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-members-of-gen-z-want\">Members of Gen Z want:<\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li>no bank fees (66%)<\/li><li>24\/7 customer support (12%)<\/li><li>connectivity to other payment apps (8%)<\/li><li>built-in savings tools (almost 6%)<\/li><li>automatic categorization of expenses (4%)<\/li><li>voice-enabled banking service (around 4%)<\/li><\/ul>\n\n\n\n<p>What\u2019s the bottom line? Although 500 respondents can\u2019t be representative of the entire generation, the results heavily correspond with what we have been underlining in our previous posts. <strong>Consumers want personalized care<\/strong>. They look for&nbsp; FinTech services as part of a larger ecosystem (read more here: <a href=\"https:\/\/codeandpepper.com\/innovations-improving-fintech-customer-experience\/\">FinTech customer experience<\/a>), with <strong>more benefits than the basic app can offer.<\/strong><\/p>\n\n\n\n<p>Money is a major concern for this generation. Entering the workforce is stressful, so anything that can help \u2014 counts. Curiously enough, 61% of Gen Z\u2019s <a href=\"https:\/\/cdn2.hubspot.net\/hubfs\/4000540\/4%20-%20unidays-content\/reports\/reports-pdf-versions\/UNiDAYS-Zs-and-Money-What-You-Need-to-Know-UK-Report.pdf\" rel=\"nofollow\">choose the same bank<\/a> as their parents. That\u2019s an additional reason why FinTech should work even harder to convince these young adults to save money with their app. <a href=\"https:\/\/codeandpepper.com\/services\/digital-transformation-it-services\">Digital transformation <\/a>of traditional banking institutions can be another factor and motivator.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-to-win-over-gen-z-users\">How to win over Gen Z users?<\/h3>\n\n\n\n<p>Applications like <a href=\"https:\/\/venmo.com\/\" rel=\"nofollow\">Venmo<\/a> or <a href=\"https:\/\/www.dana.id\/en\" rel=\"nofollow\">DANA<\/a> capture the audience with practical features making shopping online is easy. Gen Z shoppers can also use digital products to pay for utilities and even split the bill among friends in a restaurant. Who in their 40s and beyond splits the bill? Some of them, but probably not a lot of them. For the young and pragmatic, it\u2019s often a necessity.<\/p>\n\n\n\n<p>Vouchers? Not a problem, DANA has them covered. With over 1000 collaborating merchants, the product is a hit among the youngsters. They can <a href=\"https:\/\/www.aptap.co.uk\" rel=\"nofollow\">browse for best deals<\/a>, buy things cheaper and pay an electric bill while they\u2019re at it. Easy and simple, as all should be.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-fintech-for-generation-z-the-bottom-line\">FinTech for Generation Z: the bottom line<\/h2>\n\n\n\n<p>Imagine you could change the world with a single act&#8230; If you can\u2019t, don\u2019t worry. Members of Gen Z have already done that. They give you what you need to make them happy. They won\u2019t give up personal information that easily but they contribute to a digital society in ways many app developers have probably never imagined. Their digital mastery among generations drives further FinTech innovations.<\/p>\n\n\n\n<p><a href=\"https:\/\/codeandpepper.com\/services\/mobile-app-development\/\" target=\"_blank\" rel=\"noreferrer noopener\">FinTech mobile software development<\/a> often focuses on what consumers need. Sometimes forgetting what they actually want and ask for. Slick <a href=\"https:\/\/codeandpepper.com\/services\/ux-design-agency\/\">UX<\/a> \/ <a href=\"https:\/\/codeandpepper.com\/services\/ui-design-company\/\">UI design<\/a> should go hand-in-hand with the practicality of life improvements. Generation Z seems to be better prepared for adulthood than Millennials. Now it\u2019s time for FinTech to follow.<\/p>\n\n\n\n\n\n<section id=\"contact\" class=\"contact-block block common-block \">\n  <div class=\"container\">\n\n\n    \n  <svg class=\"wave\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"280\" height=\"9\" viewBox=\"0 0 280 9\">\n    <path fill=\"currentColor\" fill-rule=\"evenodd\" d=\"M0 3.6c2.88 0 4.18-.668 5.824-1.515C7.724 1.108 9.879 0 13.998 0c4.12 0 6.274 1.108 8.175 2.085 1.644.847 2.943 1.515 5.823 1.515 2.88 0 4.179-.668 5.824-1.515C35.72 1.108 37.874 0 41.995 0c4.12 0 6.274 1.108 8.174 2.085 1.645.847 2.945 1.515 5.824 1.515 2.88 0 4.18-.668 5.826-1.515C63.719 1.108 65.873 0 69.993 0c4.12 0 6.274 1.108 8.174 2.085 1.645.847 2.945 1.515 5.823 1.515 2.88 0 4.18-.668 5.825-1.515C91.715 1.108 93.87 0 97.99 0c4.12 0 6.273 1.108 8.174 2.085 1.645.847 2.945 1.515 5.823 1.515 2.88 0 4.178-.668 5.824-1.515 1.9-.977 4.054-2.085 8.173-2.085 4.12 0 6.273 1.108 8.174 2.085 1.646.847 2.945 1.515 5.825 1.515 2.88 0 4.18-.668 5.826-1.515 1.9-.977 4.055-2.085 8.175-2.085 4.12 0 6.273 1.108 8.174 2.085 1.646.847 2.945 1.515 5.825 1.515 2.88 0 4.179-.668 5.824-1.515 1.9-.977 4.054-2.085 8.175-2.085 4.12 0 6.274 1.108 8.175 2.085 1.646.847 2.946 1.515 5.826 1.515 2.88 0 4.18-.668 5.826-1.515 1.9-.977 4.054-2.085 8.175-2.085 4.12 0 6.273 1.108 8.174 2.085 1.646.847 2.945 1.515 5.825 1.515 2.881 0 4.18-.668 5.827-1.515 1.9-.977 4.056-2.085 8.176-2.085 4.121 0 6.276 1.108 8.177 2.085 1.646.847 2.946 1.515 5.827 1.515s4.181-.668 5.828-1.515C259.718 1.108 261.873 0 265.995 0c4.121 0 6.275 1.108 8.177 2.084 1.645.848 2.946 1.516 5.828 1.516V9h-.007l-5.252-.793c-1.129-.382-2.056-.848-2.919-1.291-1.646-.847-2.946-1.516-5.827-1.516-2.882 0-4.183.669-5.829 1.516-1.9.977-4.056 2.084-8.177 2.084-4.12 0-6.275-1.107-8.176-2.084-1.647-.847-2.947-1.516-5.828-1.516-2.88 0-4.18.669-5.827 1.516-1.9.977-4.055 2.084-8.176 2.084-4.12 0-6.273-1.107-8.175-2.084-1.645-.847-2.944-1.516-5.824-1.516s-4.18.669-5.826 1.516c-1.9.977-4.055 2.084-8.175 2.084-4.12 0-6.275-1.107-8.176-2.084-1.644-.847-2.945-1.516-5.825-1.516-2.88 0-4.18.669-5.825 1.516-1.9.977-4.054 2.084-8.174 2.084-4.12 0-6.274-1.107-8.176-2.084-1.644-.847-2.943-1.516-5.823-1.516-2.88 0-4.18.669-5.826 1.516-1.9.977-4.054 2.084-8.175 2.084-4.12 0-6.274-1.107-8.174-2.084-1.646-.847-2.946-1.516-5.825-1.516s-4.179.669-5.824 1.516c-1.9.977-4.053 2.084-8.173 2.084s-6.273-1.107-8.173-2.084c-1.645-.847-2.945-1.516-5.824-1.516-2.88 0-4.179.669-5.824 1.516C90.265 7.893 88.11 9 83.99 9c-4.12 0-6.273-1.107-8.173-2.084-1.645-.847-2.944-1.516-5.824-1.516s-4.18.669-5.825 1.516C62.268 7.893 60.113 9 55.993 9c-4.12 0-6.274-1.107-8.174-2.084-1.645-.847-2.945-1.516-5.824-1.516-2.88 0-4.18.669-5.825 1.516C34.27 7.893 32.116 9 27.996 9c-4.12 0-6.273-1.107-8.174-2.084-1.645-.847-2.945-1.516-5.824-1.516s-4.179.669-5.824 1.516C7.311 7.359 1.127 8.618 0 9\"\/>\n<\/svg>\n\n<h2 class=\"block-title section-title\">\n  Let&#8217;s talk about your project<\/h2>\n\n\n  <div class=\"block-description typography-body\">\n    <p>Do you want to build and attractive app, not only for Gen Z? I can make it happen.<\/p>\n  <\/div>\n\n    \n          <div class=\"contact-block-person\">\n        <img loading=\"lazy\" decoding=\"async\" width=\"90\" height=\"90\" src=\"https:\/\/codeandpepper.com\/wp-content\/uploads\/2019\/09\/Olga_Pogorzelska_online-6-90x90.png\" class=\"contact-block-person-image\" alt=\"\" srcset=\"https:\/\/codeandpepper.com\/wp-content\/uploads\/2019\/09\/Olga_Pogorzelska_online-6-90x90.png 90w, https:\/\/codeandpepper.com\/wp-content\/uploads\/2019\/09\/Olga_Pogorzelska_online-6-150x150.png 150w, https:\/\/codeandpepper.com\/wp-content\/uploads\/2019\/09\/Olga_Pogorzelska_online-6-140x140.png 140w, https:\/\/codeandpepper.com\/wp-content\/uploads\/2019\/09\/Olga_Pogorzelska_online-6-160x160.png 160w, https:\/\/codeandpepper.com\/wp-content\/uploads\/2019\/09\/Olga_Pogorzelska_online-6-136x136.png 136w, https:\/\/codeandpepper.com\/wp-content\/uploads\/2019\/09\/Olga_Pogorzelska_online-6.png 200w\" sizes=\"auto, (max-width: 90px) 100vw, 90px\" \/>        <div class=\"contact-block-person-text\">\n          <div class=\"typography-title-m\">\n            Olga Pogorzelska          <\/div>\n          <div class=\"typography-body-medium\">\n            New Business          <\/div>\n        <\/div>\n      <\/div>\n    \n\n    <form class=\"contact-form\" method=\"POST\" action=\"https:\/\/codeandpepper.com\/wp-admin\/admin-ajax.php\">\n            <amp-recaptcha-input layout=\"nodisplay\" name=\"recaptcha_token\" data-sitekey=\"6LeEo8cqAAAAABpahzrYQeEsO-xoutAjoIkrKpTB\" data-action=\"contact_block\"><\/amp-recaptcha-input>\n            <input type=\"hidden\" name=\"action\" value=\"contact_block_submit\" \/>\n      <input type=\"hidden\" name=\"block\" value=\"smallContactForm\" \/>\n      <input id=\"contact-email\" type=\"email\" name=\"email\" placeholder=\"Email\" class=\"gtm_form_input\" required>\n      <label for=\"contact-email\" class=\"contact-block-hidden-label\">Email<\/label>\n      <input id=\"contact-name\" type=\"text\" name=\"name\" placeholder=\"Full name\" class=\"gtm_form_input\" required>\n      <label for=\"contact-name\" class=\"contact-block-hidden-label\">\n        Full name      <\/label>\n\n      <input type=\"submit\" name=\"submit\" value=\"GET A QUOTE\" class=\"gtm_form_submit btn-big\">\n\n      <div submitting>\n      <\/div>\n      <div id=\"TYPSmallForm\" class=\"submit-msg submit-success\" submit-success>\n        <template type=\"amp-mustache\">\n          <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"26\" height=\"26\" viewBox=\"0 0 26 26\">\n    <g fill=\"none\" fill-rule=\"evenodd\">\n        <g stroke=\"#FFF\" stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" transform=\"translate(1 1)\">\n            <path d=\"M17 8.5l-7.5 7L7 13\"\/>\n            <circle cx=\"12\" cy=\"12\" r=\"11.5\"\/>\n        <\/g>\n        <path d=\"M1 1h24v24H1z\"\/>\n    <\/g>\n<\/svg>\n          Your message has been sent. 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This is how Generation Z takes us to the world of cashless and<a class=\"moretag\" href=\"https:\/\/codeandpepper.com\/what-does-generation-z-spend-their-money-on\/\"> Read the full article&#8230;<\/a><\/p>\n","protected":false},"author":20413,"featured_media":21945,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1688],"tags":[1654,934,1691],"class_list":["post-15885","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fintech-business","tag-fintech-software-development","tag-fintech-startups","tag-generation-z"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Does Gen Z Spend Their Money On? 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