Every time I open Instagram, I find myself perplexed. As a millennial spender who frets far too much about financial security and the monthly status of her 401(k), I can’t help but linger a few extra seconds on wanderlust-y posts from Gen Z friends who, one week, are popping up in Paris; the next, sharing pics from a flight to Greece.
No, these aren’t aimless types who take life as it comes; nor are they the kind who are rolling in dough brought in by their day jobs. On the contrary, these are people who quite simply prioritize travel above all else, but manage to do it in a way that doesn’t leave them with a mountain of credit card debt on the other side. But how?
According to a recent report in The Guardian, it all comes down to priority spending. “Young adults are traveling, just not spontaneously and with an eye to putting money aside for the future,” per the piece, which also states that Gen Zers average three leisure trips a year despite earning less than $50,000 annually. In other words, experiential living is their goal and they’re going to find a way to make it happen, dammit.
But here’s the rub: Just because Gen Z is prioritizing shelling out to see a Taylor Swift concert in London vs. socking every spare bit of cash away for a down payment on a future starter home (perhaps a dated goal, given today’s housing market) doesn’t mean they’re fiscally irresponsible. On the contrary, this speaks to a greater generational shift, according to Lindsay Bryan-Podvin, founder of Mind Money Balance and Cash App’s financial therapist, not to mention a more modern budgeting approach. (Yes, Gen Z is managing to prioritize saving, too.)
“Older generations—millennials included—have always prioritized a financial safety net but also earning the right to rest through work,” Bryan-Podvin, who is a millennial herself, explains. “Vacations were something you did on a special occasion, not as an annual quarterly ‘must-have.’” That might explain why it’s so jarring to witness the frequency—not to mention, the luxeness—of all these Gen Z vacations. It’s not just a financial splurge, but chips away at PTO, too, something previous generations have been taught to hoard.
As for how they can afford it, Bryan-Podvin is quick to point out how accessible travel has become, both financially and logistically. “Today, you can compare flights, book a last-minute hotel and translate directions in real time from your phone,” she says. “Budget airlines are more common, short-term rentals are everywhere and TikTok can show you how to maximize travel rewards (such as credit card points) in 60 seconds.”
There are likely even more frugal financial moves going on behind the scenes. For example, members of Gen Z not only have a high-yield savings account, but also a vacation fund and a Roth IRA. “These are digital natives we’re talking about: They are doing things automatically or habitually that used to be more manual,” Bryan-Podvin says. Bottom line: Gen Z is much more comfortable with financial nuance.
On a social level, Gen Z is more at ease when it comes to being open about their spending plans. “This is the ‘therapy speak’ generation—they know how to name their feelings and their boundaries and that includes telling their friends, ‘I’m saving up for Greece, so I can’t go to the concert with you.’” (Per The Guardian, their savings mindset has also been shaped by events beyond their control such as the COVID-19 recession, a higher cost of living and crippling student debt.)
Which brings me to another fascinating aspect of this cultural shift when it comes to spending priorities. Perhaps it’s true that it was ingrained in older generations to work more and travel (and, therefore, spend) less, but younger generations—such as Gen Z—may feel more entitled to take a break. “They didn’t grow up with true downtime or work/life separation,” Bryan-Podvin says. “Older generations weren’t getting Slack messages at 8 p.m. or work emails during their kids’ soccer games on the weekends. Gen Z and millennials are navigating a work culture that’s ‘always on,” which leads them to see travel as a necessary reset in addition to being something fun.”
Hey, as long as they’re automating their savings, too, is prioritizing more weekends in Paris really a bad thing?
