- One-third of Gen Z (33%) and 32% of Millennials care more about having a fun summer than they do saving money
- More than a quarter of Gen Z (27%) and Millennials (28%) are willing to take on debt in order to have a fun summer
- Nearly 40% of Gen Z (38%) and Millennials (39%) say that regardless of where their finances stand, they will always prioritize summer travel
High costs – whether it be for airfare or entertainment – are not enough to keep young Americans from living their best lives this summer. With travel at the top of consumers’ to-do lists, financial goals and saving money may be put on pause until the fall.
According to a new study conducted by Qualtrics on behalf of Intuit Credit Karma, despite the fact that one-third of Gen Z (33%) and 38% of millennials don’t feel financially stable right now, more than one-third of Gen Z (38%) and millennials (35%) are willing to put their financial goals on hold in order to have a fun summer.
Needless to say, many young Americans are prioritizing fun over their finances these next few months, with roughly one-third of Gen Z (34%) and millennials (32%) reporting they plan to spend money to treat themselves this summer even though they cannot afford to, while 33% of Gen Z and 32% of millennials admit to caring more about having a fun summer than they do saving money. That YOLO energy may play a part in young Americans’ willingness to take on debt in order to afford summer fun (27% of Gen Z, 28% of millennials).
As temperatures rise, apparently consumer spending does too – at least that’s the case for
39% of Gen Z and 35% of millennials who say they plan to spend more money this summer than they did last summer. Of those who anticipate their spending will increase over these next three months, 22% of Gen Z and millennials expect to spend up to an additional $1,500 each month, and 13% expect to spend up to an additional $2,000 each month.
A summer debt hangover may be in the cards for the 20% of Gen Z and 24% of millennials who anticipate taking on debt this summer, with roughly a quarter expecting to take on as much as $2,000 in debt (23% of Gen Z, 25% of millennials). More concerningly is the 11% of Gen Z and 8% of millennials who are forecasting their summer debt loads will surpass $4,000.
Add summer travel to the tab
Rising travel prices may not be enough to hold young consumers back from jet setting this summer. Nearly 40% of Gen Z (38%) and millennials (39%) say that regardless of where their finances stand, they will always prioritize summer travel, while 44% of Gen Z and millennials are willing to spend more money on travel this year than in years past.
Summer travel is officially on the calendar for 61% of Gen Z and millennials, and many are dipping into their savings to cover travel expenses. While 47% of Gen Z and 43% of millennials will tap their general savings to pay for their travel, about a quarter of Gen Z (26%) and nearly one-in-five millennials (19%) plan to use a dedicated savings account they’ve built specifically for travel.
Gen Z and millennials will also rely on credit card rewards and travel miles to help pay their way (21% of Gen Z, 23% millennials), and 13% of Gen Z respondents plan to open a new travel or rewards card. Additionally, Buy Now, Pay Later services are being considered by 16% of Gen Z and millennials, and 15% of Gen Z and 17% of millennials plan to take on debt to fund their travel.
Social media spurs travel itineraries
Social media’s influencing powers strike again, and it’s giving young consumers the travel bug. About a quarter of Gen Z (26%) and 22% of millennials admit to having been influenced to spend money they don’t have on travel from seeing other people’s vacations on social media. Some young consumers are treating social media platforms like their own personal travel agents with 40% of Gen Z and 35% of millennials saying that social media has influenced the type of summer vacation they want to go on, whether it be destinations they want to travel to or specific resorts they want to stay at.
Social media has also been known to exacerbate pressures to keep up with the Joneses, which could be why 44% of Gen Z and 42% of millennials are more interested in taking a luxury vacation this year than they have been in the past.
Friendfluence is also a thing
Social media posts aren’t the only things influencing young consumers to spend money. More than a quarter of Gen Z (28%) and 21% of millennials say they feel like they need to keep up with their friends’ spending habits this summer. In relation to feeling pressure to keep up with friends, and potentially their milestone moments, 36% of millennials and 30% of Gen Z say they feel obligated to attend wedding or wedding-related events (i.e. bachelorette) even if they cannot afford to.
“Seasonal spending is very real, and summertime is no exception,” said Courtney Alev, consumer financial advocate at Credit Karma. “Despite the fact that many consumers are struggling to keep up with their finances at a time when travel costs are on the rise, many young people aren’t willing to put a price tag on the fun and adventure they seek out during the summer months. Factor in social media, and temptation to spend money grows even more as many of our social media feeds are flooded with people on lavish trips. Whatever your desired summer splurge – whether it’s taking a vacation, going to the concert, or buying new clothes for the summer – do your best to plan ahead, save up for the purchase, and stick to a budget. Going into debt for fun is never recommended, especially with sky-high credit card interest rates, but if you find yourself spending more than you can immediately afford to pay off, make sure you have a plan to pay down that debt ASAP before interest charges rack up.”
Methodology
This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma between June 6, 2024 and June 8, 2024 among 2,006 adults ages 18 and older.