Gen Zs 'little treat economy is thriving. These financial products help you enjoy responsibly

Gen Z may be struggling with larger financial milestones, but that hasn’t stopped them from their daily coffee run.

According to a 2026 Deloitte survey, 55% of Gen Z said financial constraints have delayed a major life decision, like starting a family or continuing their education, because of their current financial situation.

And yet, Gen Z is finding ways to spend on simple pleasures. Ninety-two percent of Gen Zers said they treat themselves to boost their mood on bad days or celebrate good ones, a recent Bank of America study found. Affordable luxury goods (think: your $10 matcha latte with oat milk) often see increased buying during times of financial hardship, a trend commonly referred to as the “lipstick theory.”

Gen Z’s spin on this phenomenon is aptly referred to as the “little treat” economy. Their spending per transaction on both ice cream and baked goods is growing at twice the rate of other generations, and their spending at small and mid-sized coffee shops has increased by over 25% year over year.

While nobody is trying to take Gen Z’s treats away from them, there is a way to indulge responsibly. CNBC Select takes a look at why these little purchases bring so much joy, and some ways you can weave them into your budget without sacrificing too much.

A recent Federal Reserve report found that, in 2025, almost a quarter (24%) of people ages 18 to 29 — otherwise known as Generation Z — didn’t pay their bills in full in the month prior to the survey. And 47% had help paying everyday expenses from someone outside their household in the prior 12 months, like a cellphone bill, rent or utilities.

When it comes to housing, a separate Bank of America study found almost a third (29%) of Gen Zers said rent or housing costs were the biggest barrier to financial success. They’re also putting more money than recommended toward their rent, or over half of their income (51.9%), according to Experian — well above the 30% guideline.

Gen Z is actually saving for retirement earlier than previous generations, according to the Bank of America study. But they also save the least compared to how much they spend. Perhaps unsurprisingly, a separate KPMG survey found over one-fifth (22%) of Gen Z’s household income is put toward “discretionary” goods and services, the highest of any generation.

It’s clear that Gen Z is struggling financially, but the solution doesn’t have to be all or nothing. While it might take a little time, they can have their cake and eat it too — and still save for retirement.

If you haven’t already made a budget, you should consider doing so. Smaller, more frequently purchased treats can make it a lot harder to track your overall spending compared to just one or two big-ticket items.

If you’re looking for a beginner-friendly tool, Monarch can be a great place to start. You can bring together your finances, from bank accounts to credit cards, including the value of your home. The app also automatically tracks recurring subscriptions, and you can add a significant other (or roommate), making it easier to save toward a mutual goal or split costs.

Building a budget is the first step, but it doesn’t automatically mean you’ll have disposable income. Creating enough financial wiggle room for everyday treats likely won’t happen overnight, but instead through small contributions.

Putting your savings in a high-yield savings account (HYSA) is a great way to make sure the money you’re putting aside is earning you the best return. HYSAs can have APYs of 10X compared to traditional savings accounts. For example, a Live Oak Bank Personal Savings account offers a 4.00% APY and has no minimum balance requirements to open; you can open one with a single penny.

If traveling is at the top of your list, like the 93% of Gen Zers who planned to travel this past summer, consider a card that not only rewards you for traveling but comes with useful perks for your journeys.

The Chase Sapphire Preferred® Card (see rates and fees) earns a blanket 2X points on all travel purchases (plus 5X points on Chase Travel^SM) and a statement credit to cover the Global Entry, TSA PreCheck® or NEXUS application fee. The points you earn can be transferred to 10+ Chase transfer partners, like World of Hyatt or United Airlines, which is one of the most cost-effective ways to travel.

If you’re more interested in concerts or sports, the Capital One Savor Cash Rewards Credit Card earns 3% cash back on several categories, including entertainment spending. This covers a wide range of options, from aquariums to record stores to sought-after categories like concerts or sporting events.

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