Gen Z “consciously overspend” on skin care and are prepared to invest in feeling good about themselves, new research reveals.
More than half of the cohort, who are currently aged between 13 and 28, are happy to spend more money than they ought to, found building society Nationwide
Feeling good was the top reason for overspending for 42% of them, while 22% said they did it to make others feel good.
Skin care trends such as ‘glass skin’ and products such as serums and those containing retinols and collagen were among the top splurges for Gen Z, along with fashion and streaming.
More than a third of Gen Z (39%) said they overspent in sunny weather, compared to 30% at Christmas, a reversal of the trend typically seen among older generations.
“For some Gen Z, there is a conscious, almost proud, tendency to splurge on the very latest trends, often far beyond what they can realistically afford,” said behavioural psychologist Jo Hemmings, commenting on the building society’s findings.
“This can be linked to identity and belonging.
“For them brands are tribal, wearing a new label or buying the latest skin care is not just about the item itself – it is about signalling taste, status and cultural currency.”
Gen Z are likely to be highly influenced by TikTok, Instagram and Snapchat, Hemmings added, with following and aspiring to be celebrities like television personality Molly-Mae Hague and presenter Maya Jama.
“For many Gen Z’s, overspending is a conscious investment in their social capital,” said Hemmings.
“In a world where they have grown up seeing influencers seemingly receive endless ‘hauls’, they often feel the pressure to keep up, even if it means dipping into an overdraft or putting off longer term financial goals.”
In total an estimated 15.4 million people across age groups consciously overspend at least once a month.
The most restrained spenders were those aged over 55.
Women were found to overpend on non-essentials more than men, with 33% of them doing so once a month, compared to 25% of male shoppers.