Millennial’s Eye-Opening Take on Gen Z’s ‘Extravagant’ Sp…

The bag might be Miu Miu, the drink may be a $9 matcha latte delivered by DoorDash, and the flight is likely a last-minute ticket to The Bahamas—but for many Gen Zers, these purchases are more about making the most of what they have than an indication of financial independence.

A viral social media post by 30-year-old entrepreneur Andrew Yeung pointed out what he described as Gen Z’s comfort with “extravagant” spending on luxuries while forgoing the homes, cars and children that previous generations pined after. His Threads post, under @andrew.today, stirred a generational debate: Are younger adults financially reckless, or are they adapting to an economy that has shut them out of traditional milestones?

Yeung, a former tech strategist for Meta and Google turned events entrepreneur in New York City, reflected on younger generations who, in his words, are “so absurdly priced out of traditional, big purchases like houses, cars, kids” that they turn to “designer clothes, phones, extravagant vacations, or DoorDash because that’s all that feels within reach.”

The sentiment, echoed by other experts, has tapped into a broader cultural shift. Gen Z adults, facing economic headwinds including high housing prices, less disposable income and student loan burdens, are delaying or forgoing traditional markers of adulthood—while appearing to spend more freely on travel, fashion, and fun.

“Young people are defaulting to opting out of traditional high-ticket purchases,” Yeung told Newsweek. “Given the increasing cost of living, stagnant salaries, and decreasing disposable [income], they substitute those for things that are more affordable but unnecessary.

“See: luxury vacations, watches, music festivals, fashion designer wear, and other discretionary purchases. This satisfies the short-term urge or dopamine reward for Gen Zers to ‘get a return on their disposable income.’”

Gen Zers, who were born between 1997 and 2012, and younger millennials too, have the lowest homeownership rates of any generation—something that many economists also attribute to student loan debt, rising housing costs and stagnant wage growth.

Research from Hamptons, a real estate agency in the U.K., found that while millennials faced an average monthly mortgage payment of approximately £863 ($1,167) for their first home when adjusted for inflation, Gen Zers are looking at monthly repayments of £1,739 ($2,350).

In the U.S., Gen Zers face an average mortgage payment cost of $1,882 each month.

On average, Gen Zers have low levels of disposable income among working-age adults, which has led to many reporting that saving for property feels “unrealistic” within the next decade. Nearly half of Gen Zers run out of money each month, and less than a quarter consider themselves financially stable, according to a 2025 survey from Step.

A Reddit thread in which a 44-year-old small business owner expressed surprise at how frequently young customers used expensive delivery apps like DoorDash and Uber Eats instead of picking up food in person—despite the added fees. His post sparked hundreds of comments debating whether this behavior reflected irresponsibility or a rational shift in spending priorities.

Michael Mack, an award-winning leader in the luxury resale space, has a more positive spin on Gen Z’s spending. He told Newsweek that younger consumers are redefining luxury and what can be accessible.

“We’re seeing Gen Z prioritize experiences and self-expression over traditional milestones, and that includes spending on luxury items like travel, fashion, and dining,” Mack said. “From my perspective in the secondhand luxury space, this generation is savvy—they’re not avoiding luxury, they’re redefining it.

“They seek value, flexibility, and authenticity, often choosing pre-owned luxury to stretch their dollars while still enjoying high-quality goods.”

He agreed that broader economic factors also play a role.

“Economic pressures like student debt and rising housing costs are key here,” he said. “For many, home ownership feels out of reach, so their financial goals have shifted to focus on attainable rewards and curated lifestyles.”

A Gen Zer’s Perspective

Among Gen Z, spending on what were once deemed luxuries is also seen as a reaction to pervasive uncertainty and the growing normalization of seeing flashy items on social media.

Will Gryba, a 23-year-old digital marketing executive and personal finance TikTok creator with over 20,000 followers, told Newsweek that the psychology of his generation is shaped by instant gratification—and the need to keep up appearances online.

“My generation seems to spend more on vacations and takeout meals due to both social media and instant gratification,” Gryba said. “Lovely, aesthetic coffee shops, cafés, restaurants, and holiday destinations are all being shown to younger audiences through social media platforms, which once was not a possibility in past generations—making it more in demand due to them knowing there’s a bigger world out there.”

Another creator, @jaychoycetibbitts, told viewers on TikTok that travel is no longer the “flex” it once used to be, and that traveling is now an “entry-level luxury.”

Despite the appeal of accessible luxury, Gryba acknowledged the difficulty many Gen Zers have with long-term financial planning.

“I also think my generation has an issue with instant gratification and feel like they have to be entertained at all times,” he said. “I feel this too—it’s definitely a real thing.”

Gryba also challenged the notion that buying a home is still the ideal financial goal that older generations had drilled into them.

“Gen Z are starting to notice that maybe buying a home isn’t as great of an investment as it used to be—not to mention it takes so much longer to save up for a downpayment than it used to,” he said.

Wider research has pointed to Gen Z entering adulthood amid housing affordability issues and rising living costs compounded by climate anxiety, inflation, and the lingering effects of the COVID-19 pandemic. Still, Gen Z spending is growing twice as fast as previous generations’ spending did at the same age and is expected to eclipse baby boomers’ spending globally by 2029, according to a 2025 McKinsey report.

Dr. Judith Joseph, a board-certified psychiatrist and bestselling author of High Functioning, told Newsweek that the spending habits of Gen Z reflect a psychological shift toward present-focused living.

She says that this generation tends to do what they want to in the present moment, more than other generations, because they often feel like the future is not guaranteed, and that they might as well lean into happiness and enjoyment now.

For Yeung, Gen Z’s spending habits are less about frivolity than they are about finding value in the present moment, and many people in the comments section of his viral post appear to agree.

“This is why increasing sales in cosmetics is generally seen as a recession indicator. When big goals are unattainable, small luxuries tend to thrive,” one viewer commented, while another added: “If you can ONLY afford to save $200 per month, you can’t afford a house, but you CAN spend that $200 on things you enjoy. Why is this most BASIC of concepts so difficult for boomers to understand.”

“It’s very basic human psychology,” another shared. “Same reason a boomer might buy a motorcycle and eat at Applebee’s every Sunday instead of saving for a yacht they want but know they will never be able to afford. Humans like to be able to enjoy some of their earnings but are limited on what’s in reach.”

Some had other opinions, showing that the intrigue into why Gen Z prioritize and spend the way they do is still well and truly alive.

“Who’s going to tell them the reason they’ll never [achieve traditional financial milestones] is BECAUSE they blow their cash on clothes, phones and vacations,” one viewer said. “No one just wakes up with a down payment, they forgo those things mentioned for a few years to build a life of their dreams. Rome wasn’t built in a day, and neither is your bank account.”

“90s kid here,” another weighed in. “When I had my first jobs in high school, I blew all my paychecks on CD’s and clothes. Of course, when I hit my 20s and tried to move out, I was kicking myself for not creating any kind of savings. I would suspect teens today are like the teens when I was young. Plus, they live at home longer. They will figure it out.”

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