Gen Z’s feelings about the world differ from those of older generations, too. Globally, Gen Z consumers are more optimistic about social issues compared with other generations but less optimistic that inflation will stabilize and prices will come down. 15 About 40 percent of Gen Z respondents across Germany, the United Kingdom, and the United States say that they’re worried about their financial futures (compared with 31 percent of members of older generations). 16 This concern, however, isn’t universal. In China, only 11 percent of surveyed Gen Zers report that they’re worried about their financial futures (this may be because saving money is a habit more common in China than in other places). In any case, Gen Zers’ financial fears aren’t holding them back from spending. Half of surveyed US Gen Z consumers (and 35 percent of those in Germany and the United Kingdom, but only 8 percent of those in China) state that they don’t have enough money saved to support their lifestyle for more than one month—yet they still prioritize spending. 17 More than one-quarter of surveyed Gen Z respondents report using buy-now-pay-later services to make a purchase, a behavior particularly prevalent among Gen Zers in China (40 percent), India (38 percent), the United Arab Emirates (36 percent), and Australia (35 percent). 18 Despite having a smaller financial cushion, Gen Zers are the surveyed generation members most willing to splurge and take on debt (Exhibit 3). 19 In China, Germany, the United Kingdom, and the United States, 34 percent of surveyed Gen Zers report a willingness to buy on credit, which is about 13 percentage points higher than seen with other generations. Gen Z’s desire for financial security, alongside a tendency to splurge, means that brands need to create products and experiences that Gen Z deems splurgeworthy (which may be based on the latest trends or word of mouth). Surveyed Gen Zers tend to splurge on apparel (34 percent) and beauty (29 percent). One thing that brands should keep in mind: Gen Zers often pay a premium for convenience. Across key markets, a higher share of Gen Zers say that they use grocery and food delivery services compared with members of any other generation. 20 Looking ahead, Gen Z consumers will set the tone for broader consumer expectations. Businesses that best understand where Gen Z is prioritizing spending will be positioned for success. 15 Survey question: What are the greatest sources of optimism for you right now? 16 Survey question: What’s your level of agreement or disagreement with the following statement regarding your financial future? McKinsey State of Consumer Market Survey of 2,838 consumers from China, Germany, the United Kingdom, and the United States, April 23 to May 6, 2025 (date range covers differing survey dates in the four regions). 17 Survey question: If you were to lose your income today, how long could your savings support your current lifestyle, making no changes to current spending? McKinsey State of Consumer Market Survey of 2,838 consumers from China, Germany, the United Kingdom, and the United States, April 23 to May 6, 2025 (date range covers differing survey dates in the four regions). 18 Survey question: Over the past three months, have you done any of the following regarding purchase and payment? Based on a sample of 1,004 respondents in China, 1,003 respondents in the United Arab Emirates, 991 respondents in India, and 978 respondents in Australia. 19 Survey question: What’s your level of agreement or disagreement with the following statements regarding purchase and credit? McKinsey State of Consumer Market Survey of 2,838 consumers from China, Germany, the United Kingdom, and the United States, April 23 to May 6, 2025 (date range covers differing survey dates in the four regions). 20 Survey question: In the past week, which of the following have you purchased or spent money on? McKinsey State of Consumer Market Survey in 2,838 consumers from China, Germany, the United Kingdom, and the United States, April 23 to May 6, 2025 (date range covers differing survey dates in the four regions). 7 State of the Consumer 2025: When disruption becomes permanent