- A majority of Gen Z (ages 18-28, 87%) and millennials (ages 29-44, 84%) consider certain non-essential items and services to be “necessities” – things they’re willing to spend money on, no matter the state of their finances.
- Roughly three quarters of Gen Z (74%) say that if their financial situation worsens in the coming months, they will strongly consider cutting back on their non-essential spending – less likely to do so than other generations (82% of millennials, 86% of Gen X ages 45-60, and 87% of boomers ages 61-79).
- Just over half of millennials (51%) and 45% of Gen Z say they would rather reduce long-term savings than give up certain lifestyle experiences, such as going out to eat, travel and fitness memberships.
While it’s fair to say Americans are living through a cost-of-living crisis, some seem to be embracing a “life goes on” mentality when it comes to spending. It raises the question: have we started to adjust to a new economic normal – not by cutting back, but by redefining what we’re not willing to live without?
According to a new study conducted online by The Harris Poll on behalf of Intuit Credit Karma, among 2,074 U.S. adults ages 18 and older, 87% of Gen Z and 84% of millennials consider certain non-essential items and services to be “necessities” – things that they’re willing to spend money on, no matter the state of their finances.
Willingness aside, most Americans do recognize that the state of the economy should be taken into consideration, with 83% saying that if their financial situation worsens in the coming months, they will strongly consider cutting back on their non-essential spending, including nearly three quarters of Gen Z (74%). However, other generations did express more willingness to cut back on their non-essential spending, including 82% of millennials, 86% of Gen X and 87% of boomers.
So, what are some of the top non-essential items and services that Americans consider to be necessities these days?
| Non-essential items/services considered necessities | Gen Z | Millennials | Gen X | Baby boomers |
| Streaming services (e.g. Netflix, Hulu) | 36% | 37% | 37% | 29% |
| Skincare and beauty products | 27% | 26% | 18% | 22% |
| Grocery delivery (Amazon, Instacart) | 26% | 28% | 19% | 12% |
| Dining out | 26% | 24% | 19% | 23% |
| Fitness classes / gym memberships | 24% | 18% | 11% | 10% |
| Shopping for new clothes | 23% | 19% | 15% | 14% |
| Food delivery (Uber Eats, DoorDash) | 23% | 20% | 12% | 6% |
| Therapy | 23% | 19% | 11% | 9% |
| Travel | 21% | 21% | 17% | 23% |
| Buying coffee out | 21% | 19% | 13% | 7% |
| Skincare and beauty treatments (manicures, facials, hair appointments) | 20% | 20% | 11% | 12% |
Willing to spend, but at what cost?
More than half of Gen Z (56%) and millennials (59%) say they view spending on their hobbies and interests as a necessity, not a luxury. And in many cases, they don’t seem all that concerned with the financial tradeoffs they may need to make as a result. Just over half of millennials (51%) and 45% of Gen Z say they would rather reduce long-term savings than give up certain lifestyle experiences, such as going out to eat, travel and fitness memberships. Much of the same sentiment is shared for taking on credit card debt – 46% of millennials and 44% of Gen Z are willing to take on credit card debt in order to maintain non-essential spending that is important to them.
What’s influencing this perhaps careless spending philosophy among certain young Americans? For 60% of millennials and 53% of Gen Z who consider certain non-essential items and services to be necessities, it’s social media that has influenced them to consider certain non-essential items and services as necessities. Another reason some Gen Z might feel more comfortable prioritizing certain non-essential spending could be because they have some form of a financial safety net. In the same study, more than one-in-five Gen Z (22%) say they have not taken any steps or done more to prepare their finances for a potential recession because they have a financial security blanket, for instance, parents who will financially support them.
“It’s not entirely surprising that young people today are choosing to find comfort in spending on the things they enjoy, even amid economic uncertainty,” said Courtney Alev, consumer financial advocate at Intuit Credit Karma. “The cost of living has been high for a few years now and it’s possible people have already acclimated their budgets to reflect that. However, I highly recommend auditing your finances now to make sure you can sustain yourself if an unexpected expense or income change were to shake things up. Doing so may not require any major lifestyle changes, but something as simple as setting aside $20 a week in an emergency savings fund. It’s not about cutting out everything that brings you joy, but more about creating a financial cushion. Even the smallest steps could mean less stress and fewer tough choices in the near future.”
Methodology
This survey was conducted online within the United States by The Harris Poll on behalf of Credit Karma from April 7-9, 2025, among 2,074 U.S. adults ages 18 and older. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact pr@creditkarma.com.