Gen Z Balances Budgeting & “Conspicuous Consumption,” New Data Reveals
NEW YORK – November 9,2025 – Despite facing economic headwinds and anxieties around finances,Generation Z is together embracing conspicuous consumption,prioritizing visible displays of status alongside cost-cutting measures like packing lunches,according to emerging trends and a recent report by Boston Consulting Group (BCG). This behavior reflects a shift in how young consumers define and perform “taste,” moving away from traditional luxury towards an ”affordable opulence” fueled by social media and algorithmic recommendations.
The trend sees younger consumers seeking to evoke the elegance of wealth without necessarily possessing it, a phenomenon echoing the theories of economist Thorstein Veblen. As Veblen posited, this isn’t about the goods themselves, but “the evidence of wealth.”
BCG data indicates that 65% of Gen Z consumers cite social media as their primary source of fashion finding – more than twice the rate of older generations. Nearly half have made purchases directly influenced by TikTok or Instagram, and 40% utilize AI-powered tools for style and price comparisons. This reliance on algorithmic suggestion is shaping spending patterns, diminishing brand loyalty.
This constant exposure to curated lifestyles creates a marketing environment that “never switches off,” delivering personalized cravings directly to users’ ”For You” pages. This occurs even as many Gen Z individuals grapple with financial pressures – including high costs for food, rent, and education - and a challenging job market.
The desire for aspirational aesthetics begins at a remarkably young age.Reports show ten-year-olds are allocating allowances to expensive skincare products, such as $70 moisturizers and $90 serums, mirroring influencer routines. Disturbingly, girls as young as eight have experienced chemical burns and rashes from overuse of anti-aging products marketed through platforms like TikTok, drawn in by appealing packaging and “glow” marketing. This early adoption represents an initiation into the aesthetics of conspicuous consumption.
Veblen himself observed that the ultimate goal of accumulation isn’t consumption, but rather “the evidence of wealth.” Today’s Gen Z appears to be performing this evidence, not through inherent wealth, but through carefully curated displays of aspiration.
