Some 45% of Gen Z Say They'd Rather Cut Savings Than Give Up Eating Out — Have Spending Priorities Gone Off Track?

In an era of rising prices and economic uncertainty, it might come as a surprise to learn that many young Americans are prioritizing "fun" over funds. A recent Intuit Credit Karma study finds that 45% of Gen Z would rather reduce long-term savings than give up dining out — a trend that raises questions about spending habits and financial resilience.

Today's Best Finance Deals

Redefining What Counts as a Necessity

The Credit Karma survey asked 2,074 U.S. adults which non-essential items they'd still happily pay for, no matter their cash flow. A striking 87% of Gen Z (ages 18–28) say they consider certain non-essentials "necessities," compared with 84% of millennials (ages 29–44). In other words, things like streaming services, skincare products, and dining out have become budget line items, not luxuries.

Don't Miss:

• Hasbro, MGM, and Skechers trust this AI marketing firm — Invest before it's too late.
• Maximize saving for your retirement and cut down on taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation. 

When pressed on cutting back if money gets tight, nearly three-quarters of Gen Z, or 74%, say they'd strongly consider trimming non-essential expenses — still lower than the 82% of millennials, 86% of Gen X (ages 45–60) and 87% of baby boomers (ages 61–79) willing to do the same.

Savings vs. Experiences

Perhaps the most eye-opening stat: just over half of millennials (51%) and 45% of Gen Z would opt to shrink their long-term savings rather than sacrifice lifestyle experiences such as eating out, travel, or gym memberships. This suggests a "live for today" mindset, where the immediate payoff of a night out or a weekend trip outweighs the abstract benefit of a beefed-up retirement account.

Trending: Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.30/share!

What Drives These Choices?

Several factors may be at play:

• Social Media Influence: More than half of millennials, or 60%,  and over half of Gen Z, or  53%, report that social media has shaped their view of what's "necessary," nudging them toward spending on trending services and experiences.
• Safety Nets: Approximately 22% of Gen Z say they haven't tightened their budgets for a possible recession because they rely on a financial cushion, such as parental support.
• Acclimated Budgets: With living costs high, many young people may have already adjusted their baseline expenses, treating certain non-essentials as routine rather than optional.

Expert Advice: Build a Cushion, Not Just Memories

"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," says Courtney Alev, consumer financial advocate at Intuit Credit Karma. 

See Also: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share.

She recommends a simple audit: setting aside a small, regular amount—say $20 a week—into an emergency 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."

Have Priorities Shifted — or Gone Off Track?

With nearly half of Gen Z willing to tap savings for lifestyle perks, it's clear that attitudes toward money are evolving. Are these young adults simply redefining what makes life worth living, or have spending priorities truly gone off track? As prices and expectations both remain high, the choices today's consumers make could shape their financial well-being for years to come.

Read Next:

• Nancy Pelosi Invested $5 Million In An AI Company Last Year — Here's How You Can Invest In Multiple Pre-IPO AI Startups With Just $1,000.
• ‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share with a $1000 minimum.

Image: Shutterstock