Money Absolutely Buys Happiness

^{Qualitative research data in this article was collected from a Koi Pond study run by NinetyEight in September 2024. All names have been changed for privacy purposes. The Koi Pond is NinetyEight’s proprietary research community with over 900+ Gen Z participants. Learn more about The Koi Pond here.} 

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In 2017, a story of an Australian millionaire went viral after he criticized millennials that couldn’t afford a home for spending too much on avocado toast and coffee. Of course, with the internet being the internet, a flurry of discussions and deep analyses on the economics of avocado toast were published as a response. Each report and study published on millennial spending habits skewered the out of touch millionaire’s comments, all while highlighting the breakfast item’s nonexistent impact on home buying. Fast forward to today: in LA, the average price of some warm bread with green mush smeared on it is $13.50, home prices are 60% more expensive than they were in 2017, and Gen Z’s financial outlook on life might as well take its name from the 1930s. Gen Z, in all aspects, is cooked.

Now functionally, there isn’t really any difference between “little treat” culture and the “treat yo self” cultures that have existed before Gen Z’s time. However, it’s this unique financial dilemma that Gen Z currently finds themselves in, and our mindsets and behaviors that make little treat culture unique. Gen Z has truly internalized those aforementioned reports and analyses on avocado toast, and embedded them into our consumer culture. With no visible path to buying a home, and the looming threat of an unexpected expense wiping out our entire savings, the $10 we have on hand is truly of no consequence: by next week it’ll be gone anyways. So why not spend it on something we like? Something that keeps us happy?

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That illustrates Gen Z’s shifting mindset: money absolutely buys happiness, however fleeting it might be. Or rather, we can save $10 more and be f*cking miserable.

For Gen Z, little treats are no longer “ifs”, but “whens”. Treating ourselves has become another dimension in our overall health that, regardless of financial situation, is necessary to account for. This also means little treats are already built into our budgets, whether it is done explicitly or implicitly; some Gen Z’s prefer having a dedicated fund, whereas others overbudget, and take the excess funds as their little treat money. Check out how some of our Koi Ponders are maintaining their little treat expenses:

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I portion myself out spending money each month knowing that I will inevitably need a treat. - Alice, 2005

Depends on if I saved money on something else that week. - Chrissy, 2004

Treats are a part of my regular spending budget for the month, so if I wanted more treats I would have to balance it out by eating at home more or buying cheaper groceries - Belle, 2002

I make about $35,000 a year and budget to spend around $2500 a month, though I’m usually $200-$300 under in actual spending. Since I usually get a little treat about once a month and spend about $10 per little treat, it’s really not affecting my budget at all. - Jann, 2000

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So what exactly is a little treat? Empirically, it’s usually a small food or drink item that costs between $5 - $10. Sometimes it’s a choice of convenience, opting for a paid service rather than personal effort. But just like Gen Z, little treats come in all different shapes and sizes. These are a few ways we treat ourselves, courtesy of the Koi Pond:

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I finally stopped talking to my ex, so I got a $5 strawberry shortcake to celebrate & help myself get through the breakup. - Diane, 2006

Didn’t get Mooncakes at a mooncake festival so I treated myself to an Uber instead of taking the bus back home. - Lucy, 1998

I bought a book I had been wanting for a long time because of good grades in school. - Jackson, 2003

I'll treat myself to something I have at home that I was saving for the right moment like a can of soda or a chocolate bar - Ari, 2006

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Despite all this, Gen Z still aspires for more. Nearly 75% of Gen Zs report they feel guilty purchasing little treats, and the most common sentiment is “I’m wasting money I don’t have”. And even though they seem necessary, even though they impart a shred of happiness and joy to us, the guilt Gen Zs feel indicates that little treats are still ultimately a choice—one we still pay too much for. It’s these same costs that often stand in opposition to Gen Z's own long-term goals, like building financial independence or maintaining a healthy diet.

Brands also have a role to play in this dilemma. How do we reach Gen Zs who have been so financially battered by society? It’d be easy to sell a $5 - $10 product to Gen Zs and convince us it’s “guilt-free”. But cultures change, practices fade, and with our constricting budgets, at some point retail therapy just isn’t a viable avenue for us. Gen Z is already looking beyond consumerism, and finding ways of embedding joy into their lives without the need for their wallet. 

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I try to not eat out a lot, baking my own treats for less money, and unwind in ways that don't cost money like coloring or fiber arts. - Liza, 2003

I usually try to bake in at least 20 minutes of hobby time every day as a treat for doing everything I needed to do. - Ember, 2005

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If brands really want to help? Put Gen Z in a place where we are financially, physically, mentally, and emotionally secure. While it may sound daunting, brands have the opportunity to build Gen Z up; help Gen Z accomplish their goals. The best part is, it may not even have to be a drastic investment. Even the local coffee shop isn’t just a place for Gen Z to get their little treat: it can become a third space where people congregate and build community. When Gen Z has their come up, they will look favorably upon the brands that got them through the hard times. Rather than be forgotten as an instant gratification provider, brands need to invest in Gen Z’s long-term success and fulfillment to build loyalty with them for the future. Money may temporarily buy Gen Z’s happiness today, but purpose, opportunity, and respect from brands can sustain it well into the future.

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