As grocery bills increase, Gen Z claps back

For Gen Zers dealing with higher grocery bills, no-spend and low-buy challenges are becoming a simple way to cut back without feeling like they have to stop spending altogether. What started as a social media trend is starting to feel a lot more practical when groceries are taking up more of the budget, Intuit TurboTax reports.

A no-spend day can look pretty simple: no coffee run, no Target trip, and no impulse online purchases.

Nearly half (47%) of Gen Z consumers say they’re participating in or considering a “no-buy” challenge this summer (or no-spend day), according to a new study from Intuit Credit Karma.

That figure jumps to 59% for a “low-buy” challenge (the conscious effort to curb nonessential spending without cutting it out entirely).

The study, which surveyed over one thousand consumers across the U.S., highlights the growing financial pressure many Americans are feeling among “foodflation.”

Stress-free grocery shopping has become a luxury

Grocery prices are seeing their biggest surge in grocery prices in a half-century.USDA data, analyzed by the Associated Press, reveals that buying food at home costs about 33% more today than it did in 2019. And Intuit Credit Karma reports that 72% of Americans are stressed about rising grocery costs.

They’re also switching up their shopping habits: 63% say healthy eating now feels like a luxury, and one-quarter are trading fresh food for frozen or processed alternatives to drive down their spending.

Gen Z, in particular, feels the pinch. One in five Gen Zers have applied or considered applying for food stamps, while 16% rely on or have considered using food banks — the highest of any generation.

They’re also feeling psychological pressure from high prices. One-fifth of Gen Z consumers (22%) say they feel ashamed at not being able to afford groceries, while one in three say they hide their grocery spending from a partner or family member.

Mindful spending is helping Gen Zers take control of their money

Rather than micromanaging their budgets, younger consumers are shifting spending from an everyday habit to a more mindful one.

For many, it’s a matter of necessity: 44% of Gen Zers say necessities already consume their whole budget.

Between nonnegotiable monthly payments like subscriptions and weekly grocery trips, budgets are tapped before the month even begins. In response, many young consumers find themselves unintentionally doing “no-spend days” at the top half of the week to make up for the hefty grocery bill.

But it’s not always a defensive move. It’s also a way for consumers to reach their financial goals. Roughly one-third (31%) are embracing no- and low-buy challenges to save for a specific goal, while 27% want to rein in overspending.

Making no-buy work for you

The beauty of no-buy and low-buy is that they’re personal challenges. You get to make rules that work for you. But nixing spending on one or two days a week is one of the easiest ways to get started.

One or two no-spend days a week can feel like nothing. It’s just one day where someone can skip the coffee run, not wander into Target, and not make a random online purchase because they were scrolling. Those little things don’t seem like much in the moment, but when you stop doing them once or twice a week, it really starts to add up.

How you accomplish that is up to you. You might embrace a slow morning at home instead of hitting the Starbucks drive-thru or romanticize your Saturday by exploring the free attractions in your city. And, of course, you can turn to social media for support: #nobuy has more than 30,000 posts on TikTok.

Another tip: Cancel one subscription you don’t use, and make that money work for you.

This story was produced by Intuit TurboTax and reviewed and distributed by Stacker.