A third (34%) of Gen Z consumers would choose to save or invest an unexpected £1,000 windfall rather than spend it, new findings from RSM UK and Retail Economics reveal.

A survey of 1,500 Gen Z consumers by RSM UK in conjunction with Retail Economics, found that Gen Z are planning for the future and are less reckless with their cash than some might expect. When Gen Z do spend, experiences outrank possessions, with around 14% of the windfall going towards a major trip or event, compared with 12% for luxury goods.

However, the findings show that one size doesn’t fit all; Gen Z are not one generation, but four. Using cluster analysis, we found four different cohorts within the age group:

• Future flexers (43%) – the largest share of the generation. Pragmatic and ambitious, focused on building financial security.
• Experiential explorers (24%) – a balanced middle ground. Sociable and moderate, they prioritise experiences and social occasions.
• Trendsetters (17%) – most affluent Gen Z cohort. Highly image-conscious and socially connected, they influence what wider Gen Z aspires to buy.
• Budget loyalists (16%) – the youngest and most financially constrained. Practical and value-driven, focused on stretching every pound.

Jacqui Baker, Head of Retail at RSM UK, said: “Gen Z are often socially savvy, resilient and disciplined shoppers who take a pragmatic approach to spending. However, this age group isn’t sheltered from current cost pressures, so saving for the future ultimately comes first. This chimes with the bigger picture, with the household saving ratio increasing to 10.7% in Q2 2025, showing consumers are taking a more cautious approach across the board.

“Our findings challenge the common assumption that Gen Z only live for the moment. Instead, Gen Z are far from reckless and have a strong instinct to plan ahead, while prioritising experiences and social occasions. With many still living at home or renting, it’s likely that getting on the property ladder is a priority, so if they’re to part ways with their money, the purchase must align with their priorities and deliver long-term value.”

This spending powerhouse is set to drive over £26bn of retail spending in 2025, rising to almost £40bn over the next decade, according to Retail Economics – highlighting the growing influence and spending power of this trendsetting group.

Richard Lim, Chief Executive at Retail Economics, added: “Gen Z are diverse, and their behaviours, expectations and purchasing decisions vary widely, so taking a “one size fits all” approach will fail. Gen Z already represent a significant share of retail spending, and their influence is only set to grow as incomes rise, so recognising the differences within this generation is key to staying relevant in the future.”

Jacqui Baker added: “To avoid missing the mark with this spending powerhouse, retailers must focus on winning the trust of these consumers, while capturing loyalty through relevance, authenticity and innovation.”

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