Summary of this article
Gen Z is making smarter financial decisions.
Gen Z is adopting habits like ‘no-spend months' to save smartly.
Revenge saving isn’t just a phase, it is a reset for everyone.
Gen Z is now waking up to the perils of the “treat yourself” culture. After the Covid-19 pandemic, everyone started splurging on things they had always wanted. Now, after this surge in splurging, people, especially the younger generation, are now moving towards ‘revenge saving’. Consider it as a backlash to impulsive consumption and an effort to regain financial control.
Coming out of a financial hangover, Gen Z is making smarter financial decisions, according to recent trend on Gen Z money habits across social media.
During and post-Covid-19, Gen Zs were embracing a new form of spending, which was emotionally liberating. Flights, concerts, designer drops and delivery packages became the new normal, and social media fuelled it. With every swipe, people discovered their new must-haves. As inflation tightened, the reality of real-life costings settled in – from rents to spending on groceries and excessive credit card dues. The dopamine hit from spending was taking a toll on their finances.
The same generation, which was earlier splurging on lifestyle spends is now reversing their course of action now. Once they fuelled a consumer boom, and now they are attempting to choose a disciplined way of spending and channel their extra money towards saving.
Gen Z is also adopting habits like ‘no-spend months’, where they commit to only spending money on necessities and nothing else. The goal is to save aggressively and reset spending habits. The definition of self-care has also changed for Gen Z from spending aimlessly and mindlessly; they consider saving a healthier and happier choice. To them, these habits signal maturity and independence.
According to a Vanguard Survey dated June 9, 2025, 71 per cent of American Gen Z planned to prioritise saving over spending, according to a report in CNBC.
Of course, the initial phase of moving from spending to saving came with difficulties, but once it became a habit, it was a smooth sailing.
Says Kushagra Singh, 21, who works in Legistify, an IT company specialising in legal operations software: “The idea of savings always felt like a huge task for me initially, but once I got into the habit of saving, it changed my way of living and the idea of having money kept away in savings was always a huge relief and a major back-up plan.
This financial restraint feels liberating to most Gen Zs, not because they are saving money on things that pinch their pockets, but because they feel empowered by saying no and building something bigger, like stability, options, and freedom. They even admit that revenge spending felt hollow to them, buying things and still not feeling secure and stable.
Adds Hardik Karwal, 20, who works in Zeron, an IT firm: “Saving aggressively at a young age has allowed me to take control of my life and action, and to think more freely without my emotions clouding my judgement during hardships. It has given me the freedom and versatility to difficult and new scenarios, allowing me the ability to articulate my thoughts to the best of my potential, resulting in more frequent wins and unshakable confidence.”
According to both Kushagra and Hardik, revenge saving isn’t just a phase, it is a reset for everyone. It is a signal to pivot from instant gratification to an intentional lifestyle.
