Gen Z’s financial habits reflect their unique economic environment, leading to different priorities compared to other generations. A Bank of America survey shows they’re adjusting their lifestyles to invest in their future, cutting back on everyday costs like groceries and non-essentials to focus on comfort, social connections, and health.
While often mocked, these frugal habits are effective and align with their values, allowing them to plan without sacrificing important experiences.
Here are 11 frugal Gen Z habits that work.
By utilizing browser extensions that help save money
A PYMNTS survey reveals Gen Z favors credit card perks like flash sales over cashback, and often uses browser extensions like Honey and Rakuten to find deals and earn rewards, making smart savings effortless.
Choosing food loyalty programs instead of relying on delivery services
Over 50% of Gen Z engage with loyalty programs weekly, compared to 22% of older generations. With tighter budgets, they’re ditching expensive delivery services like DoorDash, opting to order directly or drive to restaurants instead.
Residing in their family household
Many Gen Zers live with parents out of necessity, saving money and tackling debt. Though stigmatized, it’s a smart response to rising costs and economic uncertainty.
Loud Budgeting (Transparent spending strategy)
Trending on TikTok, “loud budgeting” helps Gen Z set financial boundaries, resist peer pressure, and save without guilt.
Finding discounts via influencers and social media
Gen Z leverages social media for financial tips and deals, with influencers guiding them on saving, budgeting, and investing—filling the gap left by formal education.
Soft Saving (Flexible Budgeting)
Gen Z’s “soft saving” balances financial goals with fulfillment, rejecting hustle culture. Despite criticism, it helps prevent burnout and prioritizes well-being.
Turning ordinary buys into little luxuries
Gen Z swaps big purchases for small joys, investing in well-being over excess. Mocked for their little indulgences, they prioritize presence over guilt-driven spending.
Embracing a meat-free lifestyle
With meat prices soaring, Gen Z embraces vegetarianism—even flexitarianism—to cut costs and cook at home. With 51% calling it an “easy change,” this frugal habit, often mocked, helps them save and invest elsewhere.
Toting a trusty reusable water bottle
Despite the Stanley mug debate, reusable bottles remain a Gen Z life hack—mocked yet effective. At nearly $2 per disposable bottle, refills save hundreds in weeks while keeping both wallets and the planet in check.
Hitting up the library
Ditching “fast literature” for the library isn’t just a money saver—it’s Gen Z’s go-to social spot. More than free books, it’s a cost-free space to connect, recharge, and build community in an uncertain world.
Turning errands into a hangout
Grouping errands save Gen Z time and money, while carpooling and shared tasks foster connection. In a culture of individualism, small favors strengthen both budgets and community.