Younger Generations Are Gaining Spending Power. They’re Just Spending It Differently. | PGM Solutions

Younger Generations Are Gaining Spending Power. They’re Just Spending It Differently. 

This article is adapted from a recent webinar conversation with Michelle Taves, VP and Group GM, and Larisa Bedgood, Head of Marketing, on the five high-intent audiences brands should prioritize in 2026. You can watch the full webinar here: [Watch the full webinar]

There’s a shift happening with younger generations, and it’s not subtle. 

They have spending power. They’re using it. But they’re not prioritizing the same things earlier generations did. 

Gen Z and Millennials now make up roughly half of global consumer spending, and that share continues to grow. But what’s more interesting than how much they spend is where it goes. 

What stands out most is how heavily spending is tilted toward travel and experiences. For many younger consumers, money is going toward memories, flexibility, and life lived now, rather than locking into long-term stability as early as possible.  

Deloitte consistently finds that experiences now outrank material goods as a priority for younger generations, especially Gen Z and Millennials. 

Instead of focusing first on buying a home or settling into one place, they’re choosing to invest in experiences. Trips. Events. Moments they’ll remember.  

And honestly, many of us can probably name a few things we wish we had done earlier. More trips. More experiences. More yeses before responsibilities stacked up. 

This generation is doing that first. 

Value and convenience matter more than ownership 

Another defining characteristic is how much value and convenience shape decisions. 

When earlier generations wanted food outside the house, it meant getting in the car and going somewhere. Now convenience is built into daily life. Food delivery. Ride sharing. Subscription services. Anything that saves time or removes friction. 

Younger consumers are willing to pay for that ease. PwC’s consumer research shows that more than 60 percent of Gen Z consumers are willing to pay more for convenience, not because they’re careless with money, but because time has become just as valuable as dollars. 

That mindset shows up everywhere. In how they shop. In how they choose brands. In how quickly they abandon anything that feels complicated or inefficient. 

If something takes too many steps, they move on. 

Their buying journey is frictionless and multi-channel 

One mistake brands often make is assuming younger generations live entirely on one platform. 

Yes, Gen Z is active on platforms like TikTok and Instagram. That’s often where discovery starts. But the path doesn’t end there. Google research shows that Gen Z shoppers regularly move across five or more channels before making a purchase, expecting the experience to feel connected the entire way. 

They move across a lot of touchpoints. Social to email. Email to a website. Website to purchase. And they expect those moments to connect. 

Most consumers don’t think in terms of channels. They think in terms of ease. Does this feel connected, or does it feel like starting over every time? 

Being on the right platforms is only part of it. What matters is whether the experience stays consistent as people move from one place to the next. 

And this isn’t just a younger-generation thing. It’s more visible with them because their tolerance for friction is lower. 

As they build households, the home still matters 

Even with all the emphasis on travel and experiences, the home still plays an important role. 

As younger consumers begin setting up households, they care about comfort, functionality, and values. Millennials, now the largest group of homebuyers in the U.S., are shaping what that looks like. They want homes that support how they live today, not how past generations lived. 

Smart features. Comfortable spaces. Products and services that fit into their routines. 

Messaging that acknowledges both sides of this matters. The desire to explore the world and the desire to feel grounded when they are home. 

Health, self-care, and longevity are part of the equation 

Another strong theme is self-care. 

Exercise. Nutrition. Mental health. Longevity. 

These are not side interests. They are central priorities. Many younger consumers are making deliberate choices to stay healthy so they can continue doing the things they value most, including travel and experiences. 

This shows up in spending patterns and brand preferences. Products that support wellness, balance, and sustainability tend to earn trust more quickly. 

It’s not about perfection. It’s about supporting a lifestyle they want to maintain. 

What this means for marketers 

This shift creates real opportunity, but only for brands that understand how younger consumers actually make decisions. 

Younger generations are deliberate about where they spend and why. They expect brands to recognize what they value, meet them in the channels they already use, and deliver experiences that feel straightforward and connected. 

Ease matters. Relevance matters. Time matters. 

They are not disengaged, and they are not impulsive. They are making intentional choices based on what fits their lifestyle right now. 

Brands that acknowledge that reality, and design experiences around it, are far more likely to build trust and long-term loyalty. 

To see how younger generations fit alongside other high-intent audiences shaping next year, download the full report on the five audiences brands should be targeting in 2026. 

[Download the 2026 High-Intent Audiences White Paper] 

Download our report to explore key audiences to reach your ideal customers and drive your marketing impact.

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