Axios Vibes: Gen Z, millennials' spending habits fuel dependence on 'Bank of Mom and Dad'

• Rather, the combined effects of retail therapy and the fear-of-missing-out is pushing some to blow their budgets with discretionary expenses.

By the numbers: One-third of millennials and over 60% of Gen Z consumers say they rely on their parents for at least some financial support.

• In aggregate, most millennials and Gen Z-aged consumers say they feel at least somewhat in control of their budget and unnecessary costs.
• Reliance on parents is most prevalent among those who say they blow their monthly budget because of overspending on non-essentials. About 65% say that is the case.

The intrigue: Boomers and Gen Xers who feel financially squeezed are more likely to blame higher prices of basic goods. Younger consumers more often blame their own choices.

• About 40% of those in the millennial and Gen Z cohorts who say they are financially squeezed primarily attribute it to "excessive spending on non-essentials."
• Just 17% of financially-squeezed Boomers and Gen X'ers say the same.

The big picture: The huge question is if the patterns simply reflect younger generations' tendency to be less financially secure — or if there's a cultural shift that suggests overspending now, with hopes of saving later, is becoming more common.

• A majority of surveyed millennials and Gen Z'ers agree it is better to treat themselves now rather than hold off for a future "that feels like it could change at any moment."
• Similarly, a majority agree they deserve more expensive purchases "after surviving the last few years."

What they're saying: "Increasingly, there are memes like 'retail therapy' or 'little treat culture' equating mental health with impulse spending," says John Gerzema, CEO of The Harris Poll.

• Almost half (46%) who say their spending is "out of control" know they're spending too much because of "FOMO," or fear of missing out.

• A slightly smaller share (43%) say they are trying to keep up with more well-off friends.

Also: Credit card adoption has become more common. When a large share of Boomers were entering adulthood, credit cards were only beginning to to enter the mainstream.

• Data from credit card bureau TransUnion shows more than 80% of Gen Z consumers had at least one active credit credit card as of 2023. Meanwhile, 60% of millennials had a credit card at the same age, according to data a decade prior.

Methodology: The findings in this Axios Vibes survey by The Harris Poll are based on a nationally representative sample of 2,122 U.S. adults conducted online from June 13-15, 2024.

• The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the data for the overall population is accurate to within +/- 2.6 percentage points using a 95% confidence level.

Read more from the Axios Vibes survey: Inflation blame game: Who Republicans, Democrats say is driving high prices