TikTok influencers drive Gen Zers to cut back spending

The finding: Three in 5 Gen Zers follow “underconsumption core” on TikTok, which encourages consumers to cut unnecessary expenses for financial security and sustainability, per a CouponFollow survey cited in Chain Store Age.

Why it matters: The trend is driving significant changes in followers’ behavior.

• Nearly 3 in 4 have stopped impulse buying since adopting the underconsumption core lifestyle.
• They’re saving $250 a month on average by cutting back on key discretionary categories like dining out (cited by 56% of consumers), online shopping (49%), apparel (46%), and streaming subscriptions (42%).

The context: Many consumers are on a shaky financial footing.

• Credit card issuers wrote off $46 billion in seriously delinquent loans during the first nine months of 2024, a 50% jump from the same period in 2023, per BankRegData data reported by the Financial Times.
• The average CouponFollow survey respondent carries about $4,000 in debt, and nearly 40% have more than $5,000.

That’s driving them to look for financial security and reduce financial stress, anxiety, and debt.

The big caveat: Consumers' responses to survey questions don’t always correlate with their actual behaviors.

While they may aim to be more mindful about where and when they spend, many are still pulling out their pocketbooks when they encounter a new product on social media or in a store.

Go further: Read our “Gen Z Path to Purchase 2024” report, in which we break down the nuances of how Gen Z shops.

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