Gen Z Balancesโค Budgeting & “Conspicuousโฃ Consumption,” Newโข Data Reveals
NEW YORK – November 9,2025 – Despite facing economic โheadwinds and anxieties around finances,Generation Z is together embracing conspicuous consumption,prioritizing visible displays of status alongside cost-cutting measures like packing โlunches,according to emerging trends and a recent report by Boston Consulting Group (BCG).โ This behavior reflects a shift inโ how young consumers define and โperform “taste,” moving away from traditional luxury towards an โ”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 โof 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 primaryโ source of fashion finding – more than twice the rate of older generations. Nearly โฃhalf have made purchases โฃdirectly 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 brandโ loyalty.
This constant exposure to curated lifestyles creates a marketing environment that “never switches off,” delivering personalized cravings directly to users’ โข”For You” pages. This occurs even as many Gen Z individuals grapple with financial pressures – including high costs for food, rent, andโ education -โข and a challenging job market.
The desire for aspirational aesthetics begins at a remarkably young age.Reportsโ show ten-year-olds are allocating allowances to โexpensive skincare products, such as $70 moisturizersโค and $90 serums, mirroring influencer routines. Disturbingly, girls as young asโฃ eight have experienced chemical burns โand rashes from overuse of โฃanti-aging products โฃmarketed throughโ platforms like TikTok, drawn in by appealing packaging and “glow” marketing. Thisโฃ 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.”โ Today’sโ Gen Z โขappears โคto be performing this evidence, not throughโ inherent wealth, but throughโข carefully curated displays of aspiration.
