ZonaJakarta – Gen Z is known for being tech-savvy and socially connected, but when it comes to money, some common risky buying habits have emerged that can hurt their financial health.
Let’s be honest—we’ve all been there. You’re scrolling through TikTok and suddenly need that $70 “life-changing” gadget. Or you’re at the mall “just looking,” and somehow leave with a $200 haul. It happens. Fast. Spending money on things you don’t need, didn’t plan for, or can’t really afford — can quietly drain your bank account and leave you wondering, “Where did all my money go?”
The good news? You don’t have to give up shopping or fun to stay smart. You just need to hit pause before you hit “Buy.”
But before that, let’s take a look at these potential cause:
1. Overusing Credit Cards and Buy-Now-Pay-Later (BNPL) Services
One of the biggest traps is relying too much on credit cards or BNPL platforms like Klarna, Affirm, or Afterpay. These services let you buy things now and pay later, which sounds great, but it can lead to overspending without realizing how much you owe.
For example, some Gen Zers even use BNPL to pay for small things like drinks or meals, effectively taking tiny loans for everyday expenses. This can quickly add up to debt that’s hard to manage, especially if you don’t have a solid repayment plan.
2. Spending to Keep Up Appearances
Social media often shows a glamorous lifestyle—dining out, traveling, shopping for trendy clothes—which can pressure Gen Z to spend beyond their means to fit in or keep up with peers. This overspending on lifestyle and wants rather than needs can drain savings and create financial instability.
3. Creating Unrealistic Budgets
Many young people make budgets that are too optimistic, not reflecting their real spending habits. This leads to frustration and failure to stick to the budget, which can cause overspending and debt accumulation. A budget should be practical and flexible, not restrictive.
4. Ignoring Emergency Savings
Skipping or delaying building an emergency fund is a risky move. Without savings, unexpected costs like car repairs or medical bills can force Gen Z to rely on credit or loans, increasing financial stress.
5. Delaying Investing Due to Fear or Lack of Knowledge
Avoiding investments because it seems complicated or risky means missing out on the power of compound growth. Starting small, like investing in index funds or micro-investing, can build wealth over time and reduce financial risk in the long run.
6. Making Emotional Purchases
Emotions can drive impulsive buying, especially when feeling stressed, bored, or influenced by social media trends. This can lead to regret and wasted money that could have been saved or invested.
7. Fear of Missing Out (FOMO) and Social Pressure
A major driver is FOMO—fear of missing out—which pushes many Gen Zers to spend impulsively on events, fashion, and experiences to feel included and connected with their peers.
Studies show that about 86% of Gen Z consumers admit to overspending at events like concerts and festivals because of the immersive atmosphere, limited-time offers, and emotional value attached to these experiences.
Social media amplifies this pressure by constantly showcasing curated lifestyles, making it tempting to keep up appearances even when budgets are tight.
8. Emotional Spending as a Coping Mechanism
Economic uncertainty and a pessimistic outlook on the future lead many Gen Zers to prioritize “little treats” or self-care purchases to feel better in the moment.
This emotional spending helps them cope with stress but often results in overspending on non-essentials despite financial constraints.
9. Limited Financial Experience and Optimistic Budgets
Many young adults create budgets that underestimate real expenses or fail to account for impulse buys, leading to overspending. The desire to enjoy life and experiences in the present, combined with limited financial literacy, can cause them to spend more than planned.
Risky buying habits can sneak up on anyone, especially when financial literacy is still growing. Here’s how to prevent risky spending without feeling like a boring adult:
1. Know Your Triggers
We all have weak spending spots. Maybe it’s:
- Late-night scrolling when you’re bored or emotional
- TikTok or Instagram product reviews
- Big sales (“70% off? I’m saving money!”)
- Hanging out with friends who always shop
The first step is noticing what makes you want to spend without thinking. Once you know your triggers, you can create little boundaries to protect your wallet—like muting certain influencers or leaving your card at home sometimes.
2. The 24-Hour Rule (Seriously, It Works)
Next time you see something you really want, don’t buy it right away. Add it to your cart or wishlist—then wait 24 hours. Most of the time, that “I need this right now” feeling fades, and you’ll realize it’s not worth it.
If you still want it the next day and it fits your budget? Go for it—guilt-free.
3. Create a “Fun Money” Category
Spending isn’t bad. Random spending without limits is what gets risky.
Instead, build a spending allowance into your monthly budget—maybe $100–200 for fun, impulse buys, or guilty pleasures. When that’s gone, it’s time to chill until next month.
It’s like giving yourself permission to enjoy, without letting it take over.
4. Use the Notes App or Wishlist Method
Every time you get the urge to buy something, open your Notes app or a Pinterest board and write it down instead of buying it.
In a week, come back and look at your list. You’ll be shocked at how many things no longer feel important—and grateful you didn’t blow your budget.
5. Ask Yourself These 3 Quick Questions
Before buying something, ask:
- Do I really need this, or am I just bored/stressed/influenced?
- Will I still care about this a week from now?
- Can I actually afford this without messing up my essentials (rent, groceries, bills, savings)?
If any of those answers are a red flag, that’s your cue to pause.
6. Unfollow and Unsubscribe When You Need To
If certain creators, brands, or emails are always tempting you into buying stuff you don’t need, it’s totally okay to unsubscribe or mute them. You don’t owe them your money — or your mental space.
Out of sight, out of wallet.
7. Remember: Spending Isn’t Self-Care if It Leaves You Stressed
Treating yourself is great. But if you’re swiping your card to escape stress or impress others, it usually backfires. True self-care means future-you feels good too—not just “right-now” you.
Being mindful with money doesn’t mean being cheap. It means being in control.
In summary, no one’s saying “never spend.” You work hard. You deserve to enjoy your money. The goal is just to spend with intention, not regret.
Gen Z’s overspending on lifestyle trends despite limited budgets is largely driven by social influences like FOMO, emotional spending to manage economic uncertainty, the ease of digital payment options, and the balancing act between values and affordability.
Understanding these factors can help Gen Zers develop healthier spending habits and more realistic budgeting strategies.
So next time you feel the urge to make a risky buy, pause. Take a breath. Revisit your goals. And remember: you’re building a lifestyle that supports your freedom, not one that locks you into paycheck-to-paycheck stress. (*)
