Gen Z Set to Splurge This Summer as NOMO (No More Missing Out) Grips
Generation Z are set to splurge close to £1.7 billion pounds this summer as restrictions ease and they can spend money on the things they have missed out oni.
According to research from TransUnion, among Gen Z almost seven in 10 (69%) will spend more in the coming months, with hospitality – one of the hardest hit and most restricted sectors during the pandemic – profiting most. A third (33%) of 18-24 year-olds say they will spend more in the pub, and a similar amount (31%) on eating out.
This is reflective of a wider trend post-pandemic with more than a third (36%) of UK consumers set to spend more as restrictions ease, injecting a total cash boost of close to £12 billion into the economyii.
Alongside hospitality, the travel industry will also see a boost, with almost four in 10 planning to spend on a staycation (37%) and over a fifth on a holiday abroad (22%).
This spending surge is underpinned by an upbeat sentiment when it comes to the summer months. More than a fifth (22%) want to do all the things they have missed out on because of the pandemic – rising to a third for Gen Z (33%) – and a similar proportion (21%) are happy to splurge money to celebrate.
However, though one in six (17%) won’t worry about overspending as the restrictions ease, many still remain cautious. Almost a quarter say they will be more careful with their money (23%), and for a sixth (17%) the pandemic has made them realise they spent too much previously.
This polarisation is reflected in TransUnion’s latest Consumer Pulse study, which found almost a third of UK households (30%) say their finances are better than planned post-pandemic, yet 32% report they are currently negatively impacted financiallyiii.
Kelli Fielding, TransUnion’s managing director of consumer interactive in the UK comments: “After more than a year of restrictions, it’s only natural that UK consumers will be excited to go out and spend money on all the things they’ve missed out on. This is acutely visible in the hospitality and travel sectors.
“Having said that, it’s important people take forward some of the positive spending habits they’ve adopted during the pandemic, which are likely to have played a role in the credit score increases reported by close to one in five (17%) consumers.”
TransUnion’s tips to help manage spending as we come out of the pandemic:
- Know what you can afford: Be aware that as lockdown lifts you may be tempted to spend frivolously now your social life is not limited by restrictions. Avoid spending on things you would previously have deemed too expensive, so you don’t fall into unsustainable financial habits
- Review your expenses post-lockdown: If you’ve relied on new subscriptions over the past 18 months, such as streaming services, assess whether you’re likely to use them in the future and do a thorough review of your finances to ensure you’re not paying for anything you’ll no longer use. If you’re resuming leisure club or gym memberships, which one in 10 plan to do, make sure you have budgeted accordingly
- Have a budget and stick to it: Budgeting is all the more important as lockdown lifts. Look ahead in your diary and take into account any additional expenses which will affect your weekly budget, such as a night out in a restaurant, friends’ birthdays, potentially costly dentist appointments or expensive home purchases
- Adapt your lifestyle: Prioritise what you want to spend on. It could be that you avoid small purchases such as takeaway coffees or taxi journeys and instead decide to save for a holiday. Small financial decisions can lead to big rewards. Now is also a good time to shop around for things like utility and insurance providers to see if you can get a cheaper deal elsewhere
- Check your credit score regularly: Checking your credit report and score regularly is an essential part of monitoring and managing your finances. To check your TransUnion credit score and report for free visit Credit Karma MoneySuperMarket, or TotallyMoney
i Gen Z (18-24) make up 11% of the population, equating to 5,794,078 people according to latest ONS figures of the current UK adult population at 52,673,43370. 70% of them are going to spend more as restrictions lift at an average of £414 each. This means that 4,055,854 Gen Z consumers will spend a total of £1,679,123,556
ii 36% of UK consumers will spend more as restrictions ease, at an average of £618. According to latest ONS figures, the current UK adult population is 52,673,433, which means 18,962,436 consumers will spend a total of £11,718,785,448
iii According to TransUnion’s Consumer Pulse study, based on research conducted among 1,027 adults between 2-3 June 2021.