Generation Z needs to develop a saving mindset rather than spending money.

In recent years, Gen Z has had a major problem impulsively spending money, with almost half impulsively purchasing a product they saw on social media, according to BankRate.

Impulsive spending is a dangerous habit that has become popular with the rise of social media and online shopping. 

Online shopping platforms such as Amazon, Shein and Temu have become popular for individuals that like to shop online. Advertisements on social media have also played a role in impulsive spending and can persuade individuals to buy items they don’t need.

While it’s OK to buy impulsively sometimes, consumers should not make it a habit.

Andy Ayala, a first-year computer science major, said to the Northern Star that he has no regrets when it comes to impulsive spending.

“I have paid for tickets for a music festival with my friend before,” Ayala said. “I was 18, and it cost $200 for two tickets; and at the time, I wasn’t fully secure on money, but I still bought the tickets, and I think it was worth it though.”

Gen Z needs to be better informed on money so they can better budget their expenses and not spend money on items that aren’t necessary.

Impulsive spending on a concert or a vacation may feel enjoyable at the time, but it can lead to long-term consequences. Thankfully, in Ayala’s case the impulsive spending was worth it. 

But, sometimes when consumers impulsively spend money, they may find themselves living paycheck to paycheck or wind up in debt. 

Those who have bad credit could end up struggling to buy a house or a vehicle. By prioritizing saving money over spending money, consumers can have the ability to purchase items they need, such as a house or vehicle.

Most consumers enjoy spending money because it gives them a sense of joy. However, money can’t buy happiness. There are many ways for individuals to be happy and have fun that don’t involve spending money.

Tim Michaelis, assistant professor of entrepreneurship in the College of Business at NIU, provided a tip for Gen Z to save money.

“The number one thing, especially when I was a student and in grad school and even now, food prices are extremely high, so the best skill you could ever pick up is learning how to cook for yourself, and try to prep your meals each week,” Michaelis said. “You can save a lot of money and also be healthier at the same time.”

Aside from saving money, cooking is an essential skill that everyone should know how to do.

Michaelis also provided advice to Gen Z to prevent them from impulsive buying.

“One thing that I do is that if you know you really want something, just force yourself not to buy it for a week and try not to think about it,” Michaelis said. “If it comes up again or even multiple times in the next week, then just go ahead and buy it. The best thing you could do is just plan ahead a little bit in advance.”

It is crucial that consumers do not develop the habit of buying on a whim. It is better to plan purchases in advance so individuals can budget their money to see if they can afford it.

There are numerous apps that help consumers budget their money such as Mint, YNAB and Goodbudget, according to NerdWallet. Whether these apps work or not is up to interpretation. Individuals can also use a budget planner and write down their expenses. By budgeting money, individuals can grow more financially responsible.

Emily Frahm, a first-year communicative disorders major, said to the Northern Star that although she tries to save money by checking her bank account before making a purchase, it’s not very effective.

“This isn’t very effective because I only look at it sometimes rather than taking it seriously,” Frahm said. “One thing that I would say helped me a lot is the fact that I had a savings account very early on. I have very distinct memories of my parents taking me to deposit money to the bank.”

By starting a savings account at a young age, consumers can better prioritize saving and be more cautious with their money.

Gen Z should take control of their financial future by prioritizing saving. By saving money over impulsive spending, individuals can play their part in becoming more financially literate.