Spending Trends and Savings Tips

Gen Z’s spending power is projected to reach $12 trillion by 2030.  

With great power comes great responsibility.  

We’re here to help you feel well-equipped to manage those dollars by navigating spending trends successfully and saving for your future goals. 

Shopping with Buy Now, Pay Later

According to eMarketer, 55.1% of Gen Z use Buy Now, Pay Later (BNPL) to shop.  

BNPL can be a convenient method for individuals with limited credit histories to finance certain larger purchases (within your budget), but it should not become a default method of payment. It will not help you build credit history and could lead to more debt. Plus, paying with a credit card can include valuable benefits such as extended warranty protection on eligible purchases, travel and emergency assistance, and more. 

Turning to social media for recs

According to HubSpot, 55% of Gen Z consider influencer recommendations one of the most important factors in what they buy. And 58% of Gen Zers have bought something based off an influencer’s recommendation, according to Survey Monkey.  

When you’re spending time on social media, it’s important to take a step back before making a new purchase, ensuring what you are about to buy will add value to your life and is within your budget. Talking the purchase over with family and friends – especially the ones you know will keep it real for you – can keep you grounded, helping you make a well-informed, thoughtful decision.  

Reduce, reuse, recycle is a win-win

Conscious about sustainability and the environment, 80% of Gen Z buy things secondhand, according to eBay.  

Secondhand shopping or “recommerce” is a great spending option that saves individuals money, while also benefitting the environment by eliminating unnecessary waste. Even with recommerce purchases, however, you’ll want to make sure what you’re considering buying will add value to your life and is within your budget. 

Speaking of budgets

It’s totally fun to splurge once in a while, but you need to make sure you have the funds to do so. That’s where having a spending plan comes in handy.  

With a little planning, you can still enjoy some creature comforts while maintaining a budget, even in times of rising prices. Our suite of budgeting tools available to members through our Mobile App can help! 

Be savvy about your financial wellness

Before thinking about a splurge, think about your savings plan and how you can boost your financial wellness.  

A few key aspects of your financial health to consider:  

• How’s your credit score? Are you working to build it up, slowly but surely?
• How would you grade yourself on financial literacy? UW Credit Union has an entire financial wellness hub full of resources to help you learn.
• What are your financial goals? Will you have student loans to pay off? Do you hope to buy a car soon after you graduate? Make sure you are including these in your budget and savings plans. 

It’s never too early to start saving

Setting aside any little bit you can into a savings account can really make a difference down the line.  

Where will you find extra cash? We have ideas: 

• Do you really need all five streaming services? Can you unsubscribe from one or two and automatically funnel the money you were paying for those services into a savings account?
• Going out is fun, but maybe not necessary every Wednesday through Saturday? Make Friday nights movie nights with your roommates – stay in, pop some popcorn and take advantage of those streaming services you are still paying for!
• Do meals in more than out. It’s tempting and convenient to get food on the go, but there are also lots of easy, quick options you can make at home that will save you money. Money that can go into – you guessed it – your savings account.

Being independent and striking out on your own is exciting and overwhelming. Take advantage of the resources in your corner, from your family and friends to the helpful folks at UW Credit Union who have been supporting students since way before social media was even a thing.