‘I owe it to myself’: Why Gen Z believes matcha, makeup, concerts are essential self-care

For me, it’s a luxe lipstick; for Shivdasani, it’s her regular matcha latte; and for some others, it’s an occasional sushi meal or a favourite artist’s concert. Gen Z’s spending habits have been under fire from boomers and millennials alike, categorised as reckless and immature, with no thought of the future. But for a generation coming of age amid a global pandemic, war, AI takeover, and sky-high inflation, uncertainty is no stranger. And judging our coping methods without understanding and compassion only widens the generational rift.

Tanya Singh opines that the narrative that Gen Z spends recklessly really misses the point. “We’re not spending without thinking, we’re spending differently, and with a lot more intention than we get credit for,” she tells indianexpress.com. For example, her money goes into things that directly affect how she feels and functions every single day.

“A solid skincare routine, outfits that reflect exactly who I am that day, nutraceuticals that support my health from the inside out, a fresh manicure that makes me feel put-together walking into a room, and yes, events too,” shares the marketing professional. Because being present in those moments, feeling something collectively – that’s not a luxury, that’s a lived experience she will carry for years.

Singh adds that her generation grew up watching older generations defer everything, happiness, health, experiences, for a future that wasn’t guaranteed. “We saw burnout up close. So we made a different choice: to take care of ourselves now, not later. That’s not irresponsibility, that’s self-awareness,” she says.

Avyaktha Shashidhar thinks spending on concert events and lifestyle is completely justified because “we believe in living the best of our youth”. For us, the purpose of spending money is to create memories and moments, not hoard it. “Whether it is a concert ticket or spending on clothes, matcha drinks, skincare products, nail art, or cosmetics, it is not wasteful; it is a choice for happiness,” says the Bengaluru-based teenager.

Shashidhar says that the millennial and baby boomer generations cannot relate to or understand this kind of thinking, as they are focused more on the long-term benefits and value for money spent. They want to spend on things that will provide stability or a return in the future. However, Gen Z does not have to make a choice between the two. “We can have the best of both worlds by enjoying the present while keeping the future in mind by budgeting and saving early,” she adds.

Is Gen Z saving enough?

Singh believes so, but admits that it is not “as aggressively as I probably should be”. There are trade-offs, and she makes them consciously.

“I’m not sitting on a perfect financial plan; I’m figuring it out, like most of us are. But what I refuse to do is spend my entire present sacrificing for a future that’s not even certain,” she says, adding that she budgets, prioritises, cuts where she can, and wherever she chooses to spend, she does so without guilt.

As soon as Snehaa Goyal started earning, she knew she could not kill her desires and just put her hard-earned money into liabilities that do not offer anything in return. But after listening to podcasts and watching reels, she realised that savings are equally important. “I started dividing my income into certain parts for shopping, experiences, and an emergency fund, along with digital gold, SIPs, and FD,” says the brand consultant at Padma Communications. Most of her earnings, however, go into travel and luxurious stays, where she can rest her body and mind.

“My mom always asks, ‘Don’t you feel sad after spending money?’ and I always tell her, ‘Of course not, I’m not going to die on a bed of notes when they burn me,'” Goyal shares. She feels millennials have always been worried about the upcoming generations, but she wants to take care of the current generation. “If I’m working hard to earn, I owe it to myself to also live a little through it,” she says. And the future generation? “They can take care of themselves,” she remarks.

Even though Athira spends on food, movies, and concerts, she prioritises savings for her future and builds an emergency fund. “I’ve signed up for an SIP, health insurance, and gold scheme, allocating a portion of my income towards savings. I use the rest for rent and other things that bring me happiness,” says the account executive in a Bengaluru-based private organisation, adding that she made it a point to save over 30 per cent of her income since day one of joining work and spend the other 20 per cent.

Gen Z’s spending habits do not reflect financial irresponsibility, but a shift in priorities. (Freepik)

Toeing the fine line

Divya Aggarwal, Chief Growth Officer, Impresario Entertainment & Hospitality Pvt Ltd, says that Gen Z is not just choosing between saving and spending; they’re redefining both. “We’re seeing a generation that is far more aware of money – they track spending, explore multiple income streams, and think about financial security early. But at the same time, they don’t believe in putting life on hold for the future,” she shares.

Experiences, whether it’s dining out, socialising, or investing in self-care, are seen as meaningful spends for the generation. It’s less about cutting back and more about making deliberate choices: where they spend, why they spend, and what they get out of it.

Siddharth Maurya, Managing Director, Vibhavangal Anukulkara Pvt Ltd, says Gen Z’s spending behaviour shows a change in how this group is seeing value and the definition of well-being. Unlike millennials and boomers, who are conditioned to think about savings, assets, and long-term economic security, Gen Z is focused on experiential spending, self-care, and self-expression. “Spending on skincare, wellness, concerts, and even in-mood lifestyle spending like spending on matcha is critical to their mental well-being and identity,” he says.

Mahesh Shukla, Founder & CEO, PayMe, echoes his sentiments, stating that unlike previous generations that were largely focused on long-term saving, Gen Z is more comfortable leveraging digital credit to manage short-term aspirations alongside future goals.

However, Maurya believes Gen Z’s spending habits do not reflect financial irresponsibility, but a clear shift in priorities. But when lifestyle spending is not supported by their income, or they make long-term financial stability goals trade-off, that is when such behaviour becomes of real concern.

According to him, identifying the line is of utmost importance, hence they should adopt “conscious spending” – where a segment of income is allocated to guilt-free spending, with the remainder to manage investments. “The right approach is not choosing between spending and saving, but integrating both, where informed credit usage, budgeting, and early investing can help Gen Z enjoy the present without compromising their financial future,” adds Shukla.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Individual financial situations vary, and readers are advised to consult a qualified financial planner, advisor, or mental health professional before making financial decisions.