Your priorities are different depending on what stage of life you’re in, and that’s especially true when it comes to how you spend your money.
While at a certain level, what you buy is down to how much cash you have at your disposal—something that also usually varies depending on how old you are/what position you’re in—it also comes down to each generation’s unique perspective on the world and life in general. Here’s how each of the generations tends to dole out their money these days.
1. Gen Z invests heavily in tech.
Gen Z grew up with smartphones practically glued to their hands, so it’s no surprise they pour money into the latest gadgets, gaming platforms, and app subscriptions. Having a digital-first mindset means they’re often early adopters of new technology, whether that’s wearable devices or brand new payment apps.
They also gravitate toward social media trends, picking up on buzzy items from influencers without a second thought. As a result, Gen Z might buy a new pair of sneakers they saw on TikTok or throw cash at an upcoming VR headset. The upside is they stay ahead of the curve, but the downside can be impulsive spending whenever hype strikes.
2. Gen Z shops for small indulgences.
This generation loves “self-care” and treats themselves to small luxuries, whether it’s a fancy coffee, trendy skincare product, or limited-edition merch from a favourite influencer. Because they value experiences but might not have big incomes yet, these little indulgences feel like an affordable way to enjoy life.
They’re also big on expressing individuality through quirky fashion or niche hobbies. You’ll see them thrifting or hunting down unique accessories that help them stand out. While the price tags might not be huge, these purchases can add up fast if they’re making a new pit stop at the mall every week.
3. Millennials tackle student loan and credit card debt.
Many millennials graduated into a rough job market, saddled with student loan and credit card repayments. As a result, a large chunk of their income often goes straight to paying down debt. It’s a reality that can cramp their ability to invest heavily in homes (though that’s basically impossible in the UK anyway these days) or flashy cars.
Still, this generation is known for doing their homework before major purchases. They’ll read reviews, compare prices online, and wait for big sales like Black Friday or Prime Day before hitting “buy.” That practical streak helps them stretch every dollar, even when student loan payments loom overhead.
4. Millennials crave experience-based spending, too.
While they may not splurge on a mansion, millennials will happily shell out for memorable experiences—think music festivals, international trips, or weekend getaways. They value creating stories and collecting passport stamps over amassing too much stuff.
Restaurants, craft breweries, and artisanal coffee spots also rank high in their budget priorities. Brunch culture is practically a millennial trademark, showing that food experiences are a social event worth investing in. Even if they’re frugal in other areas, many won’t hesitate to treat themselves to a fancy meal with friends.
5. Gen X balances mortgages and kids.
Gen X is often in the thick of major life expenses—mortgages, raising children, and possibly supporting ageing parents. Their budgets can feel pulled in multiple directions, making them cautious about random splurges. Practical purchases, such as reliable family cars and home maintenance, take precedence.
But Gen Xers also like a bit of fun. They’ll invest in bigger-ticket items like home entertainment systems or family holidays, balancing the need to save for the future with a desire to enjoy the present. It’s a juggling act: pay down mortgage debt while still making memories with the kids.
6. Gen X also invests in home improvements.
Owning a home is key for many in Gen X, so it’s no shock they’re willing to pour cash into renovations or landscaping. Upgrading kitchens and bathrooms or adding that backyard deck can raise property values and improve daily life at the same time.
They might also pay for professional services like hiring a cleaning company or a lawn-care specialist to streamline busy schedules. By focusing on a comfortable, well-kept environment, they ensure their homes remain a space to recharge, especially when juggling work and parenthood.
7. Boomers prioritise health and leisure.
As boomers approach or enjoy retirement, healthcare expenses (especially if they’ve gone private, which is more common in the UK these days) can claim a sizeable share of their income, from regular checkups and meds to fitness classes aimed at staying active. Many also channel funds into hobbies that keep them physically and mentally engaged, whether it’s golf, gardening, or dance lessons.
Travel is huge for this group, too. With more free time, they might plan extended trips, cruise adventures, or bucket-list tours around the globe. These leisure pursuits often come after a lifetime of careful saving, rewarding them with fulfilling experiences in their post-work years.
8. Boomers hold onto brand loyalty, as well.
Compared to younger generations, boomers often stick with tried-and-true brands they’ve trusted for decades. If they’ve driven the same car make for years, they’re likely to buy another from that manufacturer. That loyalty extends to grocery staples, department stores, and even banks.
Familiarity and reliability guide their spending choices, and they’re less swayed by the latest influencer hype. However, once they find something they like, they’re willing to spend more for perceived quality, be it higher-end appliances or certain foods they believe are healthier or tastier.
9. The silent generation maintains traditional habits.
Those in the silent generation (born before boomers) often came of age during tougher economic times, so frugality is second nature. They might still clip coupons from newspapers, value face-to-face banking, and lean toward classic retail rather than online shopping.
At the same time, they typically prioritise healthcare costs, especially if they have carers come in or are moving into care homes. The focus on security and stability can extend to their finances, favouring tried-and-true investments like certificates of deposit or bonds over volatile stock picks.
10. Everyone loves subscription services.
Source: Unsplash Across all ages, subscription-based services have become a modern staple. Younger folks subscribe to music and gaming platforms, while older adults might sign up for streaming TV or regular meal-kit deliveries. The convenience factor is tough to resist.
From monthly snack boxes to curated fashion shipments, subscriptions deliver that “treat yourself” vibe right to your doorstep. Though the recurring fees can sneak up, the wide appeal shows that generations of all stripes love the ease of having goods and entertainment arrive automatically.
11. Dining out remains a favourite treat for pretty much everyone.
Regardless of age bracket, people love a good meal out. Gen Z might hit up trendy cafes for Instagram-worthy dishes, millennials indulge in brunch or artisanal cocktails, and older generations gravitate to their longtime go-to restaurants. Food is a universal pleasure.
But the frequency of dining out can differ. Younger people might grab takeout more often, while older diners choose special occasions or sit-down places. Either way, the willingness to splurge on good eats cuts across generational lines—it’s a fun way to relax, celebrate, or connect with friends.
12. Online shopping appeals to all ages.
E-commerce isn’t just for the younger crowd anymore. Many baby boomers and even some from the silent generation have discovered the joys of online shopping, appreciating home delivery for everything from groceries to household basics.
Younger generations, already glued to their phones, frequently buy clothing, gadgets, and random Amazon finds online. Sales events like Cyber Monday draw massive crowds from every age group. The comfort of browsing from home and comparing prices easily has made online retail a near-universal habit.
13. Travel budgets differ across generations.
While boomers might splurge on luxury cruises or longer retiree road trips, younger gens often chase cheaper getaways, like budget flights and Airbnbs. Millennials especially love travelling internationally on a shoestring for the experience.
Gen X families often book kid-friendly resorts or road trips with well-planned itineraries to keep everyone entertained. As for Gen Z, they might hop on spontaneous local adventures or festivals if money is tight. The common thread is a love for exploring—just shaped by different stages of life and budgets.
