Buying a cup of coffee or spending money on clothing should not really make you feel guilty, but somehow, it does. For Gen Z today, spending money on themselves often comes with an uncomfortable sense of guilt.
The desire to live well often brings a question that lingers in the minds of young people today: “Is this purchase necessary, or should I save for the future?” Even small expenses begin to feel irresponsible, owing to the uncertainty of today’s economy.
Why Does Gen Z Feel Guilty About Spending On Themselves?
This guilt springs from the exhaustion of wanting to live life fully under the motto “YOLO”, meaning You Only Live Once, while simultaneously fearing that they might be doing it all wrong. This constant push and pull between enjoying the present and securing the future has become a primary driver of anxiety.
According to Snehashish Das, quantitative analyst and financial planning expert, “It comes from ambiguity. When people do not know whether their financial foundations are strong, every discretionary expense feels like a potential mistake.”
Gen Z has grown up in an economic environment that, unlike those experienced by older generations, has been marked by rising inflation, layoffs, low or no wages for freshers, and soaring costs of living.
Trying to keep up with trends while staying ahead in an unstable financial race often leads to guilt over not doing enough.
Adding to this pressure is the fact that Gen Z is also among the most financially literate generations, with early exposure to investing, internships, and hustle culture. However, this literacy can also fuel doubt.
Reflecting on this, Das explains, “So when they spend on a coffee, skincare, or a short trip, it clashes with an internal voice that says they should be doing more.” He adds, “The guilt is essentially a signal of missing structure, not moral failure.”
Marcie Merriman, EY Americas Cultural Insights and Customer Strategy Leader, explains, “As the generation moves into its prime workforce and consumer years, several shifts are happening simultaneously.
The oldest Gen Z members are ageing out of their parents’ healthcare plans, and they are feeling the impact of financial independence amid economic uncertainty. These factors are shaping their views of work, life, and what success looks like.”
Read More: Why Is Spending Cash Physically More Painful Than Using UPI?
What The Numbers Reveal
According to a Credit Karma poll, about 49 per cent of Gen Z individuals in their twenties feel that planning for the future is “pointless”. Courtney Alev, consumer financial advocate at Credit Karma, explains, “A freewheeling attitude towards spending has taken root among young adults who feel financial despair and hopelessness.”
A 2023 EY study found that about 39 per cent of Gen Z admit to being extremely stressed about making the wrong financial choices. Further, 69 per cent describe their financial condition as “fair” or worse, with nearly 32 per cent believing their situation is extremely poor.
While 31 per cent of Gen Z claim to be financially secure, more than half, approximately 52 per cent, admit they do not have enough money. This persistent financial stress directly shapes how Gen Z views everyday expenses.
For many, spending on themselves feels like a reward that brings momentary comfort. However, this relief is short-lived and often followed by self-doubt and the weight of responsibility.
Sneha Vashisht, senior psychotherapist and founder of Happidition, explains, “When the comfort passes, guilt tends to surface, often later while checking one’s bank balance.”
She adds, “The guilt is not only about money. It comes from the tension between wanting ease in the present and carrying concerns about responsibility, adequacy, and whether one is doing enough with life.”
For a generation shaped by lockdowns and constant comparison on social media, spending is often impulsive, driven by isolation rather than mindful financial decision-making.
For Gen Z, money is frequently tied to validation and self-worth. With the rise of online shopping, food deliveries, and small indulgences, spending has become a coping mechanism in a fast-paced consumer culture.
As a result, many young people today feel guilty about their expenses. Offering a solution, Snehashish Das advises planning spending around actual needs and priorities. He explains, “When discretionary spending is planned rather than impulsive, it stops feeling irresponsible.”
He concludes by saying, “Anxiety reduces when people know that enjoyment has a designated place in their financial plan, not when they eliminate enjoyment altogether.”
Images: Google Images
Sources: The Indian Express, CNBC, EY
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This post is tagged under: Gen Z, Gen Z spending habits, spending guilt, financial anxiety, Gen Z money, cost of living crisis, hustle culture, YOLO culture, financial literacy, personal finance, inflation impact, social media pressure, consumer behavior, mental health and money, young adults and money, economic uncertainty, saving vs spending, lifestyle inflation, Gen Z psychology, money guilt
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