Half of Gen Z have “financial strain” from keeping up with fashion trends

Gen Z, the demographic cohort born between 1997 and 2012, are stressed. But alongside concerns about climate change, geopolitics, and war, these individuals are also worried about fashion.

One thing that Gen Z have become synonymous with is an eclectic sense of personal style, usually made up of carefully thrifted items, that often makes its way to their social media feeds. While this may appear to be all fun and games, a new study has learned that Gen Z may be worrying more about their looks than it seems.

Edubirdie, an online academic aid platform, discovered that fashion stands as a key concern for this demographic cohort, alongside anxieties over major global issues. The survey, which involved 2,000 Gen Z individuals, spotlights the significant mental toll many are facing for feeling the need to keep up with fashion trends.

The study found that 47 percent of Gen Z individuals feel pressured to buy clothes just to “fit in,” pointing to broader issues driving this preoccupation with appearance. A larger 56 percent of these young people reported feeling “financial strain” from keeping up with fashion trends, which led to increased feelings of stress. Among concerns about keeping their wardrobes in shape, 89 percent of those surveyed said that they feel “stressed” about global issues like climate change and war.

“Gen Z is revolutionizing the fashion industry, rejecting fast fashion in favor of personal style and sustainable practices,” Ksenia Hubska, data lead at EduBirdie, said in a press statement. “But it comes with a cost—both financial and psychological.”

The findings are telling: 42 percent of Gen Z admit to sacrificing essential items in favor of fashion, and 52 percent feel guilty about worrying over their looks while facing global issues. The data collected paints a complex picture of Gen Z, as it also found that 36 percent of this generation are partial to some retail therapy, and shop as a way to alleviate stress, despite the fact that keeping up with trends causes them stress in the first place.

Joe Percoco, co-founder of the wealth management platform Titan, spoke with Newsweek about the data.

“Most people have an overly functional view of how humans think about money,” Percoco told Newsweek. “For many people, there’s something even more important than the essentials—status.

“They’d rather compromise the fundamentals of day-to-day life to maintain their sense of status.”

Percoco says that this notion of social currency tied to fashion is even harder to ignore nowadays because of social media.

“Social media culture has amplified Gen Z’s desire for status, often through fashion and lifestyle,” he said. “Platforms like Instagram and TikTok constantly showcase influencers, celebrities and even real-life peers flaunting the latest trends, resulting in an ecosystem where appearance is tied to social validation.

“The fast-paced nature of online culture makes for a world where Gen Z feels subconscious pressure to keep up.”

Percoco contrasts this with previous generations, noting that they encountered fashion trends through slower-moving mediums like magazines, radio stations and television programs.

The financial expert, who worked at McKinsey & Co.’s in California and at Goldman Sachs & Co. in New York, adds that people in the past were less likely to be bombarded with constant shows of glitz and glamor. For one, influencers did not exist and with that their promotion of new products online also did not, neither did the act of showing off one’s latest style purchases or looks to a large digital audience.

“Treating oneself to new things for status was more often tied to significant life milestones or long-term aspirations, rather than the daily need for online visibility,” Percoco added.

This cultural shift reflects broader changes in how young people today interact with the world around them. The study’s findings depict a generation caught between the desire for personal expression and the pressures of external expectations, intensified by the omnipresence of the internet.

Gen Z also has an average debt that is around 26 percent more than Millennials. With it being tough to strike a balance between their wants and needs, these individuals are more likely to default on their debts and spend money that they simply do not have which can heighten feelings of worry and anxiety.

Still, despite their concerns about not rolling up in the latest trends, 69 percent of this generation reported that they feel confident Gen Z will be able to solve many prominent global issues as they age.