Soft-saving era? Gen-Z embraces new financial trend that puts experiences over long

Soft-saving era? Gen-Z embraces new financial trend that puts experiences over long-term planning

Many Gen-Zers are adopting a financial approach that prioritizes quality of life in the present, a trend that’s being called “soft saving.”

CPA Bob Wheeler described the mindset as a shift in how young adults balance their current lifestyle with longterm planning.

“It’s really a financial approach of ‘I want to make sure I have a good quality of life, and I’m thinking about the future,’ but not as much as the present,” Wheeler said.

For many Gen Z consumers, this often translates to spending more on experiences—such as concerts or vacations—instead of setting aside money for significant purchases like homes or vehicles.

Wheeler noted that this strategy can provide meaningful emotional advantages.

“I think there are definitely benefits, I mean, less anxiety, feeling like life is what you want it to be, fulfillment, versus saving for later on,” he said.

However, financial experts warn against neglecting longterm stability. Wheeler advised young professionals to at least utilize employer-sponsored retirement programs.

“They’re not going to do the max. They’re going to do enough to make sure they’re getting the match from your employer, so maybe they’re doing 3% or 5%. Maybe they’re not maxing out their IRAs. Maybe they’re doing $2,500,” he said.

He also emphasized the necessity of maintaining an emergency fund, ideally containing enough to cover six months of living expenses.

“I want people to enjoy their life now because tomorrow is not promised,” Wheeler said. “I also just really reiterate to them ‘and you need to have some money set aside because we don’t know.'”

Still, purchasing a home may not be a realistic goal for everyone. In certain markets, renting can be more affordable, and it allows tenants to avoid the costs associated with property maintenance.