Read our full analysis for a more in-depth look at these trends.
The Gen Z reality check
Despite low savings, Gen Z continue to prioritize experiences and “little treats,” with gig work supporting spending for some.
August 2026
Key takeaways
- Gen Z have the lowest savings-to-spending ratio of any generation, yet spending growth has remained resilient. They have been the exception to the "K-shaped" pattern, as all income cohorts within Gen Z have exhibited strong spending growth over the past six months, according to Bank of America credit and debit card data.
- Gen Z discretionary spending has strengthened across beauty, jewelry, coffee and travel, according to Bank of America payments data. This suggests younger consumers are prioritizing purchases and experiences that deliver immediate gratification - consistent with the "little treat economy".
- To maintain these spending priorities and pursue longer-term goals, Gen Z may be seeking additional income sources. A tougher labor market for new entrants - with many not getting the hours or income they would like - has coincided with increasing gig work. Bank of America account data found nearly 40% of Gen Z gig work comes from social commerce platforms.
- In this publication, we separate Gen Z fact from fiction, examining popular narratives about the generation through the lens of Bank of America data to better understand their spending behaviors, financial priorities and economic influence.
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