Impulse buying: Are Gen Z shoppers really buying more than everyone else?

SINGAPORE: After a Reddit user shared online that she was shocked to see youngsters spending S$300 to S$400 on the brand Subdued, an online discussion followed over whether Gen Zs are more prone to impulse spending than older generations.

Writing on r/SGExams, the user said she often hangs around in the Orchard area and regularly witnesses young people spending money as if it were nothing.

“Why are youngsters so rich? I always see [them] blowing a bunch of money at once like, bro? Maybe you worked, maybe parents gave you money, but genuinely????? I see my mutuals posting crazy meals and stuff, and as far as I know, they’re not from a rich family, have no job, etc. Where y’all are getting this money from? Please hook me up.”

In the comments, one wrote, “Wow, that’s rich. While I’m hanging out at hawker centres deciding on where to spend S$5 to get the most value for money for a lunch hoping to last till dinner.”

Another said they could not wrap their head around youngsters spending “S$10 to S$15 on a cup of Yochi.” When they were still in school, even a “S$5 McDonald’s set meal was considered a luxury.”

A third shared that this was something they had noticed in their own surroundings too. “Yeah, same observations—and it’s not just in Orchard, but in workplaces too. They will scrimp on meals sometimes but blow hundreds/thousands on concerts and merch, or drink bbt/chagee daily, and some will just eat out/eat expensive meals all the time.” 

“I don’t think many have a lot of savings. Good luck to their parents, who will be funding them for most of their lives, since the job market is going to continue sucking.”

A fourth added, “People tend to spend beyond their means, especially youngsters who are given money by their parents. I knew a guy who bought two shoes and then came to me and said he had no money for food, like dawg.”

Some users, though, thought the people the original poster saw were likely not teens at all, but fully grown adults who merely look young.

One said, “Probably not the general case, but I got mistaken for a teen all the way till I was about 29/30. I’ve earned 6 figures from my first job, so when I went on shopping sprees of probably S$500 to S$600 per place (equivalent), people probably thought I was a teen blowing their rich parents’ money when I was actually a grown adult. I have friends in their mid-20s who look like they’re in middle school.”

There were also a few who disagreed, saying that not every youngster out there is living off their parents’ money.

One user commented, “I’m 25, and the amount of luxury watches, gold jewellery, and silver coins I have is 2x people’s annual income. I say this not to flex; it’s just my way of alternate investments that I can also enjoy on a daily basis! And no, it’s not my parents’ money. I earned it with my hard work.”

Gen Z are the biggest impulse buyers

A survey by specialist bank Vanquis found that Gen Z shoppers make nearly twice as many impulse purchases as the average person.

It identified 16–24-year-olds as the most impulsive age group, averaging 74 impulse purchases a year—close to double the overall average of 42.

Millennials trail closely behind, with 25–34-year-olds averaging 71 impulse purchases annually.

Shoppers aged 55 and above, meanwhile, are the most disciplined, making only 17 impulse purchases per year.

Social media emerged as a major driver of this behaviour: 87% of 16– to 34-year-olds admitted to making unplanned purchases via social media, with over a third doing so frequently.

Given the hours they spend scrolling, many conceded they’re easily swayed by what they see online. It doesn’t help that this kind of spending gets glamourised, too.

Trends like “overconsumption core,” for instance, celebrate stockpiling everything from overflowing skincare and makeup shelves to piles of clothes, shoes, and accessories. 

Vanquis Head of Brand Tim Schwarz said impulse spending is “nothing new,” but the fact that younger people are particularly prone to it is “concerning.”

“Unplanned and unnecessary purchases can quickly add up and absorb your budget,” he said.

“This can very easily turn into a cycle that drains your finances and causes heavier reliance on credit cards, where debt can build to dangerous levels if the habit goes unchecked.”

Read also: Singaporean worker vents after colleagues call him ‘cheapskate’ for choosing cai fan over chicken rice