What Is Each Generation Most Likely to Splurge on in 2025?

How we spend our money is a highly personal matter that reflects our values, needs, and interests. That said, there are still some common threads in consumer spending, especially when you’re comparing different demographics. No two generations think about money the same way, thanks to economic pressures, cultural variations, political climates, and age. While retirees on a fixed income might be able to splurge on a vacation here and there, a young adult might just be scraping by.

For businesses trying to keep up with evolving customer expectations, these patterns can offer valuable feedback, especially when viewed at scale. With that in mind, the team at Qualtrics decided to look into where people spend their money when they choose to treat themselves.

How Each Generation Spends Money

Gen Z Splurges

Gen Z, born roughly between 1997 and 2012, is the youngest working generation, with the oldest members still in their 20s. Unsurprisingly, for that reason, many of the members of this bracket are struggling with things like student debt, high housing costs, and difficult schedules that may require balancing school with working. In addition, even those who have progressed to full-time work are at the start of their careers, meaning entry-level jobs and lower wages than older generations. Despite their financial constraints, this generation still finds room to splurge on treats that bring joy.

Restaurants, bars, and dining out take the top spot, with 37% of Gen Z saying they’ll spend more in this category in 2025.

Entertainment at home (36%) comes in next. The convenience of streaming has discouraged many from going to the movies.  With options like gaming and e-readers, it’s easier than ever to find something fun to do at home, especially for people who grew up with screens.

Beauty and personal care round out the top three (34%). Social media and influencers have helped make beauty a big money-maker, and Gen Z is known to be active online. Beauty items have long been understood to be a small luxury that sells well even during difficult financial times, which may also explain why they appeal to the youngest generations.

Millennial Splurges

Millennials are now in their late twenties to early forties. As such, they’re balancing careers, families, and often aging parents, and their spending habits reflect this.

Dining out and apparel (both at 33%) are tied for first. Groceries follow closely behind at 32%, suggesting that this group sees food as a necessity and an area where they can spare a little extra cash, either for special treats or simply convenience. Millennials were the first generation to widely adopt apps such as Uber Eats and Postmates, with 51% of the group using such services regularly.

Thanks again to social media, home cooking is on the rise, which may also be inspiring the over-30 crowd to experiment in the kitchen. Finally, wellness trends continue to shape the grocery aisle, with organic and farm-to-table foods appealing more and more to younger people.

Gen X Splurges

Gen X, often considered the overlooked generation, encompasses those born between 1965 and 1980. With many of the oldest members of this demographic at the ends of their careers, they are stepping into a phase where spending can reflect both responsibility and reward. The top two categories for this group are restaurants (35%) and travel (35%), suggesting this generation is embracing convenience and pleasure. Gen X, being on the younger end of the retirement crowd, are largely still healthy enough to travel freely, and more often than other groups, they’re doing it solo, or with friends only. Around 60% of Gen Xers are looking for a break from busy careers and family life, and with aging children and empty nests, they’re taking the opportunity to book trips alone.

Like Millennials, groceries also make their list at 33%, showing how Gen X spending has not stopped prioritizing essentials over experiences entirely.

Boomer Splurges

Baby Boomers, now aged 61 to 79, still control a large share of the nation’s wealth. Many are retired or approaching retirement and choose to spend where it counts.

Travel leads at 41%. After years of hard work, Boomers are making time to see the world, an unsurprising trend, considering nearly 40% of travelers are in the over-60 crowd. Dining out (36%) is also high on their list, with groceries following at 28%. Like younger generations, this group also seems to appreciate convenience, necessities, and more exquisite experiences.

What Causes the Differences in Generational Spending?

Different age groups are prioritizing their disposable income differently due to a combination of economic and cultural reasons. For example, Gen Z leads in splurging on pet supplies, which may reflect the growing trend of younger people choosing to have pets rather than children. Meanwhile, jewelry and accessories are also more popular among younger adults, especially Gen Z at 28%, compared to just 7% of Boomers. This could be another example of the less economically stable crowd valuing small, affordable treats, whereas the wealthy Boomers use their extra cash on pricier splurges.

Millennials, on the other hand, have lived through multiple economic downturns and financial crises, and are concurrently navigating student loans, childcare costs, and a tricky housing market. While their purchases overall are less material, they still seem to be making room for things that make their lives easier while accounting for necessities.

Consumer spending constantly shifts, subject to cultural, economic, and generational changes. For businesses looking to stay relevant in 2025, a one-size-fits-all approach to different demographics doesn’t always work.

At Qualtrics, we know that you need direction in addition to the raw data. Whether you’re listening to customers, employees, or stakeholders, we can provide real-time insights to help you act with precision and confidence.

The Top 3 Categories Each Generation Is Most Likely to Splurge On

Millennials

Gen X

Boomers

Generation Spending Data