The news: Gen Zers and millennials are focusing on “real-world decisions” over long-term financial goals, according to a new survey from Beyond Finance and Operation HOPE.

Dive deeper: These younger consumers have gravitated toward “survival spending,” according to the survey, meaning tactics that help them cover everyday essentials.

• 77% use buy now, pay later for essentials.
• 71% say they need side hustles to cover daily expenses.

This corresponds with our recent coverage of Gen Z as the generation with the lowest levels of emergency savings: Just 10% have the funds to cover six months of expenses.

Why this matters: Survival spending reflects a broader reset in financial behavior. Gen Zers and millennials aren’t focused on the long-term future—they’re primarily managing day-to-day stability. 

That shift is reshaping the competitive landscape in favor of products that deliver immediacy, flexibility, and real-time guidance. Financial institutions that don’t meet those needs could lose relevance with younger generations.

A word of caution: Banks shouldn’t abandon savings products and advertising entirely. Over half of college students are already thinking about saving for retirement. But balancing those products with more flexible ones will be key to meeting their evolving needs and goals.

Recommendations: To respond to the survival spending trend, financial providers should:

• Focus on building products that bolster cash flow with real-time balance insights that incorporate planned and predicted payments
• Send proactive alerts about what customers can and can’t afford given their preferences
• Provide personalized, action-oriented guidance
• Build products that account for multiple incomes such as side hustles and freelance work

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