Gen Z Spending Statistics 2026: Where Young Adults Spend Their Money

Gen Z is the first generation to reach for buy now, pay later before a credit card — and that single shift explains most of what makes its spending different. The cohort's global purchasing power is on track to expand more than fourfold this decade, from roughly $2.7 trillion in 2024 to a projected $12.6 trillion by 2030, according to the Bank of America Institute. But the more revealing story isn't how much Gen Z spends; it's how it pays, how hard it hunts for a deal, and how thin its savings cushion runs underneath all of it.

Editor's Picks: Key Gen Z Spending Statistics

• Gen Z spending power is projected to grow from $2.7 trillion in 2024 to $12.6 trillion by 2030 (Bank of America Institute).
• Wage growth outpaced rent increases for the first time in years, with roughly 9% year-over-year wage growth through early 2026, according to BofA card and deposit data.
• BNPL passed credit cards in adoption: 54% of Gen Z used buy now, pay later over the holidays versus 50% who used a credit card.
• 65% of Gen Z have used TikTok as a search engine, and 72% have bought a product directly through a social app.
• Deal-seeking is the norm: 79% wait for products to go on sale and 82% planned to buy dupes.
• 85.1% pay by phone in-store or online.
• Holiday spending held up at an average of $1,357 despite tighter budgets.

How big is Gen Z's spending power in 2026?

Gen Z makes up about 25% of the global population, making it the largest — or tied-for-largest — generational cohort, and it spends more per person than earlier generations did at the same age. The 2026 backdrop helped: rent growth cooled while wages rose, giving young adults real breathing room. Bank of America card data showed spending surges in electronics, clothing, and dining, though a gasoline price spike early in the year raised questions about how long the momentum lasts.

The headline figure is the trajectory, not the level. Gen Z's global spending power is set to more than quadruple in six years:

Annual household spending averages $74,475 for people aged 25 to 34 (U.S. Bureau of Labor Statistics), though younger households spend less overall while directing a larger share toward housing, dining out, and digital subscriptions.

Where does Gen Z spend the most money?

Beyond essentials, Gen Z's discretionary dollars cluster in a handful of categories. Electronics posted the sharpest rebound once housing affordability eased, while fashion, beauty, personal tech, and pet spending stayed consistent priorities.

The behavior underneath the numbers is deliberate, not impulsive: half of Gen Z shoppers sit on a purchase for two or more days before buying — more than double the share of Boomers who do. Millennial priorities look different again, as our millennial spending statistics show.

Gen Z spending habits: deals, dupes, and the in-store comeback

This is a value-conscious generation that treats full price as a last resort:

• More than 79% wait for products to go on sale — only 21% regularly pay full price.
• Discount-code searches rose 14% year-over-year.
• 82% planned to buy dupes, the cheaper alternatives to name brands.
• 63% planned vintage or upcycled purchases; 41% choose private-label when the price gap justifies it.

Discovery increasingly starts on social: 72% have bought a product directly through a social app, and video reviews influenced more than half of Gen Z purchases. Yet 2026 brought a twist — in-store shopping strengthened. The share planning to increase in-store holiday shopping rose from 27% in 2024 to 37% in 2025 (JPMorgan) — a shift our Black Friday statistics track across generations. Values matter too: 41% of Gen Z have boycotted a brand over a political disagreement, the highest share of any generation.

How does Gen Z pay? BNPL, debit, and mobile wallets

Gen Z leads on mobile payments — 85.1% pay by phone in-store or online, with debit as the primary method. But the defining shift is that buy now, pay later has overtaken the credit card for this group, a reversal that holds for no other generation.

BNPL use keeps climbing: 61% of adults aged 18 to 29 have taken a BNPL loan — the highest of any age group — and 56% were weighing a new one as of June 2026. Roughly 49% plan to use it for large purchases and 36% for daily essentials. The strain shows in repayment: 47% of BNPL users paid late in the past year, up from 41% in 2025 and 34% in 2024, and many young borrowers lose track of overlapping installment due dates. With FICO folding BNPL data into credit scores from late 2025, a missed installment now carries more weight than it used to.

Gen Z vaping spending statistics

This section covers adult consumers of legal purchase age (21+).

Adults aged 21–24 have the highest U.S. vaping rate at 15.5%. The global e-cigarette and vape market was valued at $45.7 billion in 2025, with projections near $59.2 billion in 2026; North America accounts for 43.5% of revenue. Per-person spending is steady — adult vapers spend about $82.22 a month, roughly $1,000 a year, and dual users add about $118.77 monthly for traditional cigarettes. Online is the fastest-growing sales channel, with adult buyers comparing options across retailers such as Nettotobak Vape before purchasing.

Gen Z savings and financial strain

Spending momentum sits on a thin cushion. Gen Z spends nearly twice its savings balance, and only 28% could cover a $1,000 emergency from savings. Visa's economists call the pattern "split-brain budgeting": 89% of Gen Z saved for a purchase last year while 75% also splurged on something — the highest splurge rate of any generation. Money swings between goal-directed saving and discretionary release. Debt compounds the pressure: 62% of Gen Z adults with debt prioritize repayment over saving, trimming the compounding benefits of these crucial early-career years.

Methodology: why the numbers vary

Gen Z spending figures diverge depending on what's being measured, so it's worth reading them carefully. The $2.7T–$12.6T range is global spending power (purchasing influence of the whole cohort worldwide), while the $74,475 figure is actual U.S. household outlay for ages 25–34 — different scopes, not conflicting claims. BNPL adoption also shifts with the survey window: the 54% "used over the holidays" is a seasonal snapshot, whereas 61% "have ever used" among 18–29-year-olds is lifetime adoption. Where sources disagree, we've kept the figure closest to its original definition and labeled the source inline.

Frequently asked questions

How much does Gen Z spend per year?

BLS data indicates $74,475 in average annual spending for households aged 25–34. Younger Gen Z households spend less overall while allocating larger shares to rent, dining out, and digital services.

What does Gen Z spend the most money on?

Beyond essentials, priorities center on dining, at-home entertainment, electronics, apparel, and travel. Qualtrics found restaurants and bars topped spending-increase plans at 37%.

What is Gen Z's spending power in 2026?

Current spending reaches about $2.7 trillion globally, with Bank of America projecting $12.6 trillion by 2030 as the cohort moves into peak earning years.

Sources

• Bank of America Institute — Gen Z spending power projection and card-spending data
• U.S. Bureau of Labor Statistics (BLS) — Consumer Expenditure Survey, ages 25–34
• Qualtrics — consumer spending-intent research
• PwC Holiday Outlook — holiday spend and dupe purchasing
• JPMorgan — in-store vs. online holiday shopping shift
• FICO — BNPL inclusion in credit scoring
• Food Institute / TEAM LEWIS — summer food & beverage spending