In our three-part series, we looked at the spending habits of Generation X and explored how Generation Y relative to money. This time, we are trying to highlight what the Generation Z is spending its money on. But get to know them first!
Who are members of Generation Z?
The general view of science is that those born between 1995 and 2010 make up the Z generation. Researchers regard them as a new type of generation (often referred to as the digital generation) because they are not digital immigrants like Generation X and Y but, according to American writer Marc Prensky, are already “digital natives” for whom they are an integral part of everyday life. web 2.0 (social media sites), smartphones and other digital communication tools and applications that are used at a skill level from a very early age.
Compared to other generations, Generation Z is the smallest but the most educated group. Compared to all generations to date, they are raised in the smallest families, are raised by the oldest mothers, and are expected to have the longest life spans. It is not surprising, then, that in certain situations there is a gap between previous generations, which is much more a possibility than a failure, because there is always something to learn from each other.
Generation Z and shopping habits
Generational differences sometimes make it difficult to communicate with older people, as the tools we use for each age group are often different. Former generation groups tend to condemn the extent and scene of digital communication, which is a source of conflict, as it is a reality and credible method for the Z generation. Nothing more demonstrates that Generation Z’s living space is largely digital, in which they see augmented reality, rather than the dangers of impersonal communication. Does this really threaten them? All this is relative.
Generation may never have been as uniform around the world as Z, which is due to globalization and, as a result, knowledge of the common world language, English. Young people listen to the same music, follow the same content on the Internet, and interact with the same. Interestingly, they are getting less and less TV, and they spend little on this kind of thing outside of smart devices. Rather, they collect trips, experiences, things that fundamentally define them and help unravel their personal identity. Even in the brands they spend on seeing the opportunity for self-expression, they are tax-characterized, at most, from their financial position.
According to a 2017 New Generation Center study
“The number of young people in work has risen to 54% since 2012, meaning a lot more young people are working and have regular incomes than in the last five years. The research also showed that half of newcomers expect a net start-up salary of 200,000 forints, which can be quite realistic in an IT or engineering career, or even higher, ”they write.
So money is important for Generation Z, but they are really excited about the (life) style they create. For them, less is often more. Because they experienced the economic crisis, albeit in different ways depending on their awareness and age, they grew up in an era when it was considered “cool” to save money by buying cheaply.
They pay great attention to value for money, extra services like free shipping when shopping online. Often, they also control their parents’ purchases, calling for a better, cheaper alternative that was not really the Y generation. In spite of all the differences, many people take these two generations under one hat. Does this have a basis?