Gen Z’s Savings Ratio Falls Below 0.5, Fueling 92% ‘Little Treat’ Spending

1 articles · Updated · Fortune · Aug 5

Bank of America Institute found Gen Z’s median savings-to-spending ratio sits below 0.5—the lowest of any generation—signaling monthly spending that routinely outpaces savings.
Forty-two percent of Gen Z live paycheck to paycheck, rising to 73% for those earning under $50,000, helping explain why 67% say they spend more on goods than experiences.
Ninety-two percent say they regularly buy themselves “little treats,” 52% do so at least weekly, and 58% say those purchases sometimes exceed what they intended to spend.
That pattern shows up in receipts: jewelry spending rose nearly 11% year over year through June, while beauty purchases grew faster in dollars per transaction than in transaction counts.
BofA says the behavior reflects budget triage rather than anti-capitalist withdrawal, with Gen Z still spending resiliently across income groups and using side gigs, loud budgeting and selective experiences to stay in control.