Gym, streaming and skincare ‘essential expenses for Gen-Z’

Traditionally, a list of essential expenses would include bills, food, housing costs and transport to work.

But for Gen-Z, this list is getting much longer.

According to a poll published by Intuit Credit Karma, more than one in four (27%) 18 to 24-year-olds consider gym membership a necessity.

This is followed by:

• streaming services - 25%
• new clothes - 25%
• skincare and beauty treatments - 22%

Socialising was another priority for Gen-Z adults, with almost one in three (30%) saying this was an essential expense.

“Gen-Z is redefining the meaning of essential spending, ensuring their emotional and physical health, and social needs are met too,” said Akansha Nath, general manager (international) at Intuit Credit Karma.

However, she warned that some young adults could be living beyond their means to keep up with these expenses.

“This shift comes with financial trade-offs, with some adults taking on debt to maintain their lifestyle,” Ms Nath commented. 

Young adults investing in mental and physical wellbeing

The survey found that across all age groups, almost one in four (24%) adults believe spending money to protect their mental wellbeing is just as important as covering traditional expenses such as food and housing.

But notably, this figure was much higher among younger adults, with 39% of 25 to 34-year-olds sharing this view.

Meanwhile, 30% of people in this category said they believed investing in their physical health is non-negotiable.

Take control of your budget

At a time when so many day-to-day costs are going up, such as food and energy bills, it’s important not to overlook the cost of other necessities you feel you can’t live without.

You can get on top of your finances and prioritise your spending with our budget planner.

Also, read our guide on how to create a budget to help you get started on identifying where savings can be made, so you can free up money for other priorities and ideally avoid slipping into debt.