{"id":11462,"date":"2025-02-06T12:50:14","date_gmt":"2025-02-06T10:50:14","guid":{"rendered":"https:\/\/escp.eu\/thechoice\/?p=11462"},"modified":"2025-02-07T11:44:29","modified_gmt":"2025-02-07T09:44:29","slug":"gen-z-and-money-what-their-spending-habits-mean-for-business","status":"publish","type":"post","link":"https:\/\/escp.eu\/thechoice\/tomorrow-choices\/gen-z-and-money-what-their-spending-habits-mean-for-business\/","title":{"rendered":"Gen Z and money: what their spending habits mean for business"},"content":{"rendered":"\n<p>When it comes to money, Gen Z \u2014 the generation born between the late 1990s and early 2010s \u2014 is full of surprises. While they\u2019re often pictured as solely values-driven and socially conscious, their financial behaviours actually reflect a mix of altruistic goals and self-oriented influences. We spoke to Julien Schmitt, a professor of sustainability and marketing at ESCP, to gather his insights into how this generation thinks about money \u2014 and what it means for businesses trying to connect with them.<\/p>\n\n\n\n<p>There\u2019s a common belief that Gen Z cares more about personal values than money, but Schmitt says that\u2019s a simplistic view of reality. \u201cThe need for money is just as important for this young generation compared to previous ones,\u201d he explains. <strong>For Gen Z, money is tied to their sense of life success, but there\u2019s a twist: their values, like saving the planet and supporting ethical causes, often create tension with their ambitions<\/strong>.<\/p>\n\n\n\n<p>\u201cThey\u2019re trying to balance this desire for personal success with their belief in taking care of the planet and doing good,\u201d Schmitt says.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-columns are-vertically-aligned-center is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>[Gen Z is] optimistic about their own lives but pessimistic about the state of the world. That might be why saving for decades down the line feels less relevant to them.<\/p>\n<\/blockquote>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"wp-block-image is-style-rounded\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"500\" src=\"https:\/\/escp.eu\/thechoice\/wp-content\/uploads\/julien-schmitt.jpg\" alt=\"Photo of Julien Schmitt\" class=\"wp-image-11463\" srcset=\"https:\/\/escp.eu\/thechoice\/wp-content\/uploads\/julien-schmitt.jpg 500w, https:\/\/escp.eu\/thechoice\/wp-content\/uploads\/julien-schmitt-300x300.jpg 300w, https:\/\/escp.eu\/thechoice\/wp-content\/uploads\/julien-schmitt-150x150.jpg 150w, https:\/\/escp.eu\/thechoice\/wp-content\/uploads\/julien-schmitt-96x96.jpg 96w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/figure><\/div><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Enjoying the present moment<\/strong><\/h2>\n\n\n\n<p>Unlike previous generations who had an important need to cautiously save for the future, Gen Z seems to be more inclined to make the most of the here and now. This attitude is shaped by a mix of social media and global uncertainty.<\/p>\n\n\n\n<p>Social media influencers, especially those flaunting luxury lifestyles, play a big role. \u201cSeeing people in Dubai driving expensive cars and living the high life creates a model of success that\u2019s all about fast money,\u201d Schmitt notes.<\/p>\n\n\n\n<p>At the same time, <strong>Gen Z is deeply concerned about the future of the planet, which makes it harder for them to imagine a long-term plan<\/strong>. \u201cThey\u2019re optimistic about their own lives but pessimistic about the state of the world,\u201d he explains. \u201cThat might be why saving for decades down the line feels less relevant to them.\u201d<\/p>\n\n\n\n<p>Take the rise of cryptocurrency, for example. \u201cCrypto appeals to Gen Z because it promises quick wealth,\u201d Schmitt says. \u201cIt\u2019s seen as a faster way to get rich compared to traditional savings accounts.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Spending with values in mind<\/strong><\/h2>\n\n\n\n<p>One thing that stands out about Gen Z is how much their values influence their spending. \u201cThey understand that they can use their money to make a difference,\u201d says Schmitt. Whether it\u2019s choosing organic or fair trade products, buying second-hand or supporting sustainable brands, this generation see how their purchases can have an impact on the world.<\/p>\n\n\n\n<p>Interestingly, Schmitt says Gen Z sees individual actions such as buying ethical products as more impactful than structural changes that can be influenced by actions such as voting or even traditional activism. \u201cWhile consumption choices have an important influence, they are not enough to create real societal change if not accompanied by structural changes,\u201d he explains.<\/p>\n\n\n\n<p>Here, there is a lack of a clear understanding of financial products like bank accounts or investments. <strong>\u201cThey don\u2019t always realise how choosing a bank that avoids fossil fuel investments could have an even bigger impact than buying an organic t-shirt,\u201d<\/strong> Schmitt points out. \u201cThere\u2019s a real need for better financial literacy here.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Putting values into action<\/strong><\/h2>\n\n\n\n<p>Despite their good intentions, it is difficult for Gen Z to align their spending with their values. They\u2019re willing to make sacrifices, like eating less meat to reduce their carbon footprint, but there are limits. \u201cThey might still fly for a vacation because some compromises feel harder than others,\u201d says Schmitt.<\/p>\n\n\n\n<p>This thought process is made difficult by many factors that provoke the &#8220;green gap&#8221;, referring to the difference between what people believe is right and what their actual behaviour is. Among those factors, the most common ones are the higher prices of sustainable options or the high desirability of some unsustainable options such as plan travel. <\/p>\n\n\n\n<p>Consequently, Gen Z often has to weigh their options carefully. \u201cThey\u2019re asking themselves, \u2018Should I even consume this category of product? And if I do, what\u2019s the best choice for the planet?\u2019\u201d he explains.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What businesses can learn<\/strong><\/h2>\n\n\n\n<p>For businesses, Gen Z\u2019s values present both challenges and opportunities. One clear takeaway is the need to offer sustainable, affordable options. \u201cSecond-hand markets or repair services could be game-changers for this generation,\u201d Schmitt says.<\/p>\n\n\n\n<p>But it\u2019s not just about products \u2014 it\u2019s also about messaging. \u201cRight now, influencers and social media are driving a narrative that enjoying life is all about material success,\u201d Schmitt points out. \u201cIf businesses and society could promote a different vision of what it means to enjoy the moment, it might help Gen Z resolve some of their contradictions.\u201d<\/p>\n\n\n\n<p>Education is another area where businesses and educators can make a big impact. \u201cYoung people need to understand how finance works beyond just consumption,\u201d says Schmitt. \u201cTeaching them how their money can influence the world \u2014 whether through ethical investments or their banking choices \u2014 could reconnect them with the bigger picture.\u201d<\/p>\n\n\n\n<p>The bottom line? <strong>Gen Z\u2019s approach to money shows a generation trying to balance optimism, uncertainty and the drive to make choices that reflect their values. They\u2019re focused on enjoying their money now but want to do it in a way that aligns with their ethics<\/strong>.<\/p>\n\n\n\n<p>For businesses, the takeaway is clear: meet them where they are. Offer sustainable options, promote financial education and rethink the narratives around success and spending. \u201cThis generation really believes their money can change the world,\u201d says Schmitt. \u201cBusinesses have a huge opportunity to help them do that.\u201d<\/p>\n\n\n\n<p>By understanding how Gen Z thinks about money, companies can build stronger connections with a generation that\u2019s redefining what it means to spend, save and make a difference.<\/p>\n\n\n\n<p><em>This article is linked to a collaboration between ESCP, Cr\u00e9dit Coop\u00e9ratif, Le Monde and Viavoice: &#8220;<a href=\"https:\/\/escp.eu\/events\/les-jeunes-et-largent-mon-argent-ma-planete-mes-valeurs\">l&#8217;Observatoire du sens de l\u2019argent<\/a><\/em>&#8220;.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>From spending now to saving the planet, Gen Z\u2019s relationship with money is full of contradictions. Julien Schmitt, a professor of sustainability and marketing at ESCP, outlines what businesses need to know.<\/p>\n","protected":false},"author":1,"featured_media":11465,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14],"tags":[63,16],"class_list":["post-11462","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tomorrow-choices","tag-finance","tag-strategy","category-14","description-off"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Gen Z and money: what their spending habits mean for business - The Choice by ESCP<\/title>\n<meta name=\"description\" content=\"From spending now to saving the planet, Gen Z\u2019s relationship with money is full of contradictions, but there are key takeaways for businesses.\" \/>\n<meta name=\"robots\" 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