Gen Z's $8 pastry habit
From TLDR by Wealthsimple · subscribed via aiste.ulozaite@gmail.com · original ↗ · unsubscribe
Gen Z doesn’t have much savings but loves spending on little treats. The trend shows Gen Z average spending on little treats grew by more than 6% YoY in June, compared to 3% for all generations, driven by the ‘little treat economy’ of joyful splurging on frivolous purchases to fill the void left by unaffordable big-ticket items.
The Gen Z reality check Skip to main content
Suggested Keywords
Type to search and use arrow keys to navigate suggestions
- About
-
Key Topics
-
Insights
- Consumer Checkpoint
- BankofAmerica.com
- About Bank of America
- Businesses & Institutions
The Gen Z reality check
Despite low savings, Gen Z continue to prioritize experiences and “little treats,” with gig work supporting spending for some.
Taylor Bowley
Lynelle Huskey
August 2026
Key takeaways
- Gen Z have the lowest savings-to-spending ratio of any generation, yet spending growth has remained resilient. They have been the exception to the “K-shaped” pattern, as all income cohorts within Gen Z have exhibited strong spending growth over the past six months, according to Bank of America credit and debit card data.
- Gen Z discretionary spending has strengthened across beauty, jewelry, coffee and travel, according to Bank of America payments data. This suggests younger consumers are prioritizing purchases and experiences that deliver immediate gratification - consistent with the “little treat economy”.
- To maintain these spending priorities and pursue longer-term goals, Gen Z may be seeking additional income sources. A tougher labor market for new entrants - with many not getting the hours or income they would like - has coincided with increasing gig work. Bank of America account data found nearly 40% of Gen Z gig work comes from social commerce platforms.
- In this publication, we separate Gen Z fact from fiction, examining popular narratives about the generation through the lens of Bank of America data to better understand their spending behaviors, financial priorities and economic influence.
Read our full analysis for a more in-depth look at these trends.
Additional Materials:
Get the latest from Bank of America
Institute delivered right to your inbox.
Explore more
[
july 2026
Regional Roundup: Shifts in spending
Consumers generally remain resilient, but regional labor market and spending patterns are far from uniform.
2 min read
](/economic-insights/regional-roundup-shifts-in-spending.html)
[
july 2026
SME exports: Destinations, dollars and opportunities
Small and medium-sized exporters have seen a surge in foreign currency revenues.
2 min read
](/economic-insights/sme-exports.html)
[
july 2026
Middle income, major impact
Despite higher prices, middle-income households continue to fuel growth across essential and discretionary categories.
2 min read
](/economic-insights/middle-income-spending.html)
- Terms and Conditions
- Privacy
- Research Distribution Disclosure
- Advertising Practices
- Your Privacy Choices
Connect with us:
These materials have been prepared by Bank of America Institute and are provided to you for general information purposes only. To the extent these materials reference Bank of America data, such materials are not intended to be reflective or indicative of, and should not be relied upon as, the results of operations, financial conditions or performance of Bank of America. Bank of America Institute is a think tank dedicated to uncovering powerful insights that move business and society forward. Drawing on data and resources from across the bank and the world, the Institute delivers important, original perspectives on the economy, sustainability and global transformation. Unless otherwise specifically stated, any views or opinions expressed herein are solely those of Bank of America Institute and any individual authors listed, and are not the product of the BofA Global Research department or any other department of Bank of America Corporation or its affiliates and/or subsidiaries (collectively Bank of America). The views in these materials may differ from the views and opinions expressed by the BofA Global Research department or other departments or divisions of Bank of America. Information has been obtained from sources believed to be reliable, but Bank of America does not warrant its completeness or accuracy. These materials do not make any claim regarding the sustainability of any product or service. Any discussion of sustainability is limited as set out herein. Views and estimates constitute our judgment as of the date of these materials and are subject to change without notice. The views expressed herein should not be construed as individual investment advice for any particular person and are not intended as recommendations of particular securities, financial instruments, strategies or banking services for a particular person. This material does not constitute an offer or an invitation by or on behalf of Bank of America to any person to buy or sell any security or financial instrument or engage in any banking service. Nothing in these materials constitutes investment, legal, accounting or tax advice.
© Bank of America Corporation. All rights reserved.
9054070-EXP-2028-02-03