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A new survey from Intuit Credit Karma found that 49% of Gen Z say planning for the future feels pointless, and many would rather enjoy their money now than worry about saving. Despite rising costs and economic uncertainty, 37% of Gen Z plan to spend more in the summer on dining, travel, and entertainment than in past years.
About 48% say they will prioritize experiences over saving, even if it means adding financial strain.
"The pressure to make the most of summer can often lead to justifying overspending, even if it's not in your best interest long-term," said Courtney Alev, consumer financial advocate at Intuit Credit Karma. "The best approach is to make plans that bring you joy, but only if they won't add financial stress. If you're going to spend the whole experience worrying about how to pay for it, it's likely not worth it."
Gen Z's apathy toward future saving comes amid a rough economic year fueled by President Donald Trump's tariffs. The trade wars Trump has sparked in his return to office have kept consumer confidence low throughout the year and many companies have warned of higher prices on goods due to Trump's tariffs.
Savings concerns are also larger than everyday purchases or summer getaways.
Because of relatively lower wages than previous generations, many millennials and Gen Zers fear they won't be able to afford a home. First-time homebuyers made up just 24% of the market in 2024, a record low from data collected by the National Association of REALTORS.
While 65% of Americans overall are turning to budget-friendly activities, younger generations aren't as willing to cut back on experiences. For many Gen Zers, travel remains a must, with nearly half saying vacations are non-negotiable, even if they have to sacrifice in other areas.
About 46% of Americans report feeling anxious about affording their summer plans, with 58% cutting back on travel and 43% skipping vacations altogether. To stretch their budgets, some are choosing staycations, camping trips, or visits to national parks, with 63% of millennials saying they're picking lower-cost travel.
To pay for summer trips, many are using "buy now, pay later" services, also known as BNPL, like Affirm, Afterpay, and Klarna. About 45% of Gen Z say they've used or plan to use BNPL for summer purchases, with 68% of users admitting they wouldn't be able to afford certain events without it.
The quick credit does come with risks. The survey found that 77% of Gen Z users say BNPL services have encouraged them to spend more than they can afford, while 38% expect to owe between $500 and $2,000 by the end of the summer.
Debt is also on the horizon. About 32% of Gen Z expect to take on debt over the summer, with 40% predicting balances between $1,000 and $4,000.
The online survey was conducted in mid-May, polling 1,015 US adults.
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