Survey: Top reasons consumers overspend include...
Younger consumers report higher rates of wasteful spending, and point to several factors for doing so.
According to a new survey from Motley Fool Money, 85% of Americans say they engage in wasteful spending at least occasionally. However, roughly 40% of millennials and 35% of Gen Z admit to wasting money a few times a month compared to 71% of boomers who say they waste money less than once a month or never. Nearly 20% of Gen Z and millennials say they waste money multiple times a week, far outpacing Gen X and boomers.
Among all consumers, frequently eating out, making unplanned purchases, frequently buying convenience food and beverages, and paying for unused subscription services were the most common wasteful spending habits.
Consumers of different ages pointed to various reasons for spending more excessively. Online advertising was the wasteful spending trigger for 62% of Gen Z and 61% of millennial respondents, compared to 58% for all respondents. Sales and discounts were cited by 53% of Gen Z respondents and 60% of millennials, while 54%% of Gen X respondents and 63% of baby boomers reported it as the driving factor.
Forty-one percent of Gen Z respondents said emotional shopping (being bored, stressed, etc.) led to them overspending the most. This compares to just 28% of millennials, 13% of Gen X and 4% of baby boomers. Influence from peers is a trigger for wasteful spending for 24% of Gen Z and 23% of millennials, which is a sharp contrast to the 9% of Gen X and 6% of baby boomers who say it drives them to splurge.
Boredom is the most common time that Americans open up their wallets for impulse buys. Forty-five percent of Gen Z said they most frequently engage in wasteful spending when they're bored, compared to just 30% of baby boomers. For older consumers, overspending is more common while on shopping trips or during the holidays.
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Millennials and Gen Z are more likely to feel buyer's remorse than older generations, especially after making unplanned purchases. Over half (54%) of millennials and 50% of Gen Z say they regret most of their impulse purchases, compared to just 41% of boomers and 46% of Gen X say the same. Only 9% of all respondents say they never regret impulse buys.
The Motley Fool surveyed 2,000 U.S. adults on May 23, 2025, via Pollfish. Results were post-stratified to generate nationally representative data based on age and gender.
The full results can be found here.
