Don’t expect Gen Zers to overspend on gifting this Christmas. In fact, expect the opposite. It appears 34% of them would choose to “save or invest” an unexpected £1,000 windfall rather than spend it, new findings from RSM UK and Retail Economics reveal. And for those willing to spend some of it will choose “experiences” over “luxury goods”.
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The survey of 1,500 Gen Z consumers (aged up to 28 years) found they’re “planning for the future and are less reckless with their cash”.
And when they do decide to spend, experiences outrank possessions, with around 14% of the windfall going towards a major trip or event, compared with 12% for luxury goods.
However, Gen Zers turn out to be something of a complex group as the findings also show that ‘one size doesn’t fit all’.
So they’re not just one group, but four, comprising: Future flexers (43%) regarded as pragmatic and ambitious, focused on building financial security; Experiential Explorers (24%) who are a balanced middle ground, sociable and moderate… prioritising experiences and social occasions; Trendsetters (17%) – the most affluent Gen Z cohort who are highly image-conscious and socially connected, influencing what wider Gen Z aspires to buy; and Budget Loyalists (16%) – the youngest and most financially constrained, practical and value-driven, focused on stretching every pound.
Jacqui Baker, head of Retail at RSM UK, said: “Gen Z are often socially savvy, resilient and disciplined shoppers who take a pragmatic approach to spending. However, this age group isn’t sheltered from current cost pressures, so saving for the future ultimately comes first. This chimes with the bigger picture, with the household saving ratio increasing to 10.7% in Q2 2025, showing consumers are taking a more cautious approach across the board.”
But on a positive ending, Gen Z is still a “spending powerhouse set to drive over £26 billion of retail spending in 2025, rising to almost £40 billion over the next decade”, according to Retail Economics, “highlighting the growing influence and spending power of this trendsetting group”.
So Baker added: “To avoid missing the mark with this spending powerhouse, retailers must focus on winning the trust of these consumers, while capturing loyalty through relevance, authenticity and innovation.”
