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Gen Z Consumers Save Hundreds Of Dollars With Lifestyle-Changing Trend Popularized By TikTok
A new TikTok movement called “underconsumption core” is influencing Gen Z spending habits. A survey released by research deals & discounts platform CouponFollow exclusively to Chain Store Age shows that respondents reported an average monthly savings of $250 just by following the trending lifestyle change.
The study of 1,000 U.S. Gen Z consumers reveals that three in five respondents follow the TikTok-driven trend, emphasizing reduced spending and financial security. One in four participants reported saving more than $500 monthly after adopting these practices.
Male respondents achieved slightly higher monthly savings of $300, compared to women’s at $240. The survey indicates dining out as the primary area of reduced spending across genders, with 56% of men and 55% of women cutting back in this category.
Meanwhile, female respondents showed stronger spending cuts in online shopping (53%) and fashion purchases (51%). Male participants, on the other hand, focused on reducing subscription services (41%) and general online shopping (41%).
Overall, video streaming services face the highest subscription cancellation rates at 65%, followed by gaming subscriptions (34%) and music streaming platforms (30%). Additionally, 25% of respondents reported decreased grocery spending, while 35% reduced coffee purchases.
The research reveals that respondents manage an average debt of $4,000, with nearly 40% owing more than $5,000. Financial security (58%) and avoiding stress and anxiety (55%) emerged as primary motivations for reduced spending.
Despite the overall reduction trend, certain categories saw increased spending among more than one-fifth of respondents, including footwear (35%), beauty products (29%), and specialty foods (27%).
The research highlights TikTok’s significant influence, with 75% of respondents crediting the platform for inspiring a more savings-focused mindset. Female respondents showed a 35% higher likelihood than males to cite TikTok as influential in their financial decisions and 20% greater susceptibility to pressure from platform trends.
The trend’s impact extends beyond savings, with nearly three-quarters of participants reporting decreased impulse buying after adopting underconsumption core practices.
The survey comes as TikTok faces uncertainty in the U.S. market, with a potential ban looming on January 19, 2025.