Gen Z is addicted to shopping

US: A survey by data analytics and research company Qualtrics found that 33% of Gen Z admit to being addicted to shopping, with social media being the main influencing factor.

Gen Z is resisting the temptation of online shopping, which is as easy as a click and a saved credit card.

A survey by credit monitoring app Intuit Credit Karma found that 74% of Gen Z and Gen Y said they will try to spend more consciously in 2024.

Young people in front of the Tiffany & Co. store at the Americana at Brand shopping center in California, December 2023. Photo: Newsweek

Shopping habits are having a big impact on Gen Z and Gen Y’s finances, with 18% reporting more than $5,000 in debt and 21% carrying $1,000-$5,000 in debt. Clothing and accessories are the two biggest spending categories, with 64% of Gen Z spending money on them.

Shopping addiction emerged during and after the Covid-19 pandemic as many Americans were stuck at home and turned to ordering online.

“People are spending money as a way to compensate and relieve stress after social distancing,” says Courtney Alev, director of Intuit Credit Karma. “This has led to a decrease in savings and an increase in credit card balances.”

Research also shows that Gen Z is looking to cut back on spending. Alev recommends shoppers take a no-shop month and focus solely on saving.

Financial expert True Tamplin - founder of financial consulting firm Finance Strategists said if young people continue to ignore financial security to shop online, they will soon be burdened with heavy debt.

“The widespread popularity of shopping platforms impacts young people, creating consumer temptations,” Tamplin said.

Kevin Thompson, CEO of private wealth management firm 9i Capital Group, says Gen Z could be a victim of online shopping, stressed by student debt, a tight job market and rising living costs.

“Shopping releases dopamine, a hormone that helps reduce feelings of stress and anxiety,” says Kevin Thompson. They have no barriers to seeing ads, social media posts, and clicking to buy.

"It's a whole lot easier than the physical checks we had to use in the '80s and '90s," said Kevin Thompson.

Ngoc Ngan (According to Newsweek )

Source