How younger generations are changing the way we think about spending, saving and financial well-being
In times of inflation, what expenses do people usually cut back on first?
Why is having an emergency fund considered good financial advice?
Why do many families struggle to make ends meet?
Should people always try to pay off debt as quickly as possible?
Why do some people live beyond their means?
Why do financial experts encourage people to put away money for retirement?
Why are younger generations becoming more interested in investing?
What habits can prevent people from getting into debt?
Under what circumstances might people need to dip into their savings?
Why are consumers increasingly concerned about getting value for money?
What does financial security mean today?
VOCABULARY
Match the terms with their definitions.
Terms
1. discretionary spending
2. disposable income
3. opportunity cost
4. financial security
5. wealth accumulation
6. lifestyle inflation
7. emergency fund
8. purchasing power
9. delayed gratification
10 financial resilience
1. discretionary spending
2. disposable income
3. opportunity cost
4. financial security
5. wealth accumulation
6. lifestyle inflation
7. emergency fund
8. purchasing power
9. delayed gratification
10 financial resilience
Definitions
A. The ability to recover from financial difficulties.
B. Money available after taxes and essential expenses.
C. Spending on non-essential goods or services.
D. Choosing future rewards over immediate pleasure.
E. Savings reserved for unexpected expenses.
F. Building wealth over time.
G. Having enough money to live comfortably now and in the future.
H. The value of the alternative you give up when making a decision.
I. Spending more because your income has increased.
J. The amount of goods and services your money can buy.
A. The ability to recover from financial difficulties.
B. Money available after taxes and essential expenses.
C. Spending on non-essential goods or services.
D. Choosing future rewards over immediate pleasure.
E. Savings reserved for unexpected expenses.
F. Building wealth over time.
G. Having enough money to live comfortably now and in the future.
H. The value of the alternative you give up when making a decision.
I. Spending more because your income has increased.
J. The amount of goods and services your money can buy.
Living with Debt
Why do people get into debt?Is debt always a bad thing?
What kinds of debt are considered "good debt"?
A. Match the expressions (1–9) with their definitions (A–I).
What kinds of debt are considered "good debt"?
A. Match the expressions (1–9) with their definitions (A–I).
Expressions
1. debt
2. repayment
3. make ends meet
4. in arrears
5. financial strain
6. the never-never
7. take out a loan
8. clear a debt
9. overdraft
Definitions
A. To borrow money from a bank or another lender.
B. Emotional stress caused by financial difficulties.
C. Money that someone owes because they have borrowed it.
D. To completely pay back all the money you owe.
E. To have just enough money to cover basic living expenses.
F. A payment made to return borrowed money.
G. A situation in which payments that should have been made are overdue.
H. An informal expression for buying something now and paying for it gradually in regular instalments.
I. A banking facility that allows you to spend more money than you currently have in your account.
B. Complete the sentences using the expressions from Exercise A. You may need to change the form of the verb.
Many households struggle to __________________ because the cost of living has increased dramatically.
Rising prices and unemployment have put thousands of families under severe __________________.
Some people __________________ to pay for university, buy a car, or purchase their first home.
If you miss several mortgage or credit card payments, you may fall __________________.
Many consumers buy expensive electronics on __________________ instead of paying the full amount immediately.
It took her almost ten years to __________________ after graduating from university.
Every monthly __________________ reduces the total amount of money you owe.
Using an __________________ can be helpful in emergencies, but relying on it regularly may become expensive.
Credit card __________________ can quickly become difficult to manage if you only make the minimum payments.
1. debt
2. repayment
3. make ends meet
4. in arrears
5. financial strain
6. the never-never
7. take out a loan
8. clear a debt
9. overdraft
Definitions
A. To borrow money from a bank or another lender.
B. Emotional stress caused by financial difficulties.
C. Money that someone owes because they have borrowed it.
D. To completely pay back all the money you owe.
E. To have just enough money to cover basic living expenses.
F. A payment made to return borrowed money.
G. A situation in which payments that should have been made are overdue.
H. An informal expression for buying something now and paying for it gradually in regular instalments.
I. A banking facility that allows you to spend more money than you currently have in your account.
B. Complete the sentences using the expressions from Exercise A. You may need to change the form of the verb.
Many households struggle to __________________ because the cost of living has increased dramatically.
Rising prices and unemployment have put thousands of families under severe __________________.
Some people __________________ to pay for university, buy a car, or purchase their first home.
If you miss several mortgage or credit card payments, you may fall __________________.
Many consumers buy expensive electronics on __________________ instead of paying the full amount immediately.
It took her almost ten years to __________________ after graduating from university.
Every monthly __________________ reduces the total amount of money you owe.
Using an __________________ can be helpful in emergencies, but relying on it regularly may become expensive.
Credit card __________________ can quickly become difficult to manage if you only make the minimum payments.
Is debt always a bad thing? Why or why not?
What kinds of debt can be considered "good debt"?
Why do some people struggle to make ends meet even if they have a full-time job?
What advice would you give to someone who is experiencing financial strain?
Do you think buying things on the never-never encourages people to overspend?
Should schools teach personal finance and debt management? Why?
What kinds of debt can be considered "good debt"?
Why do some people struggle to make ends meet even if they have a full-time job?
What advice would you give to someone who is experiencing financial strain?
Do you think buying things on the never-never encourages people to overspend?
Should schools teach personal finance and debt management? Why?
What do you think the article will be about?
What is the difference between a luxury and a necessity?
Can luxuries become necessities?
Which "luxuries" do older generations often criticise?
Do younger generations have different financial priorities?
What is the difference between a luxury and a necessity?
Can luxuries become necessities?
Which "luxuries" do older generations often criticise?
Do younger generations have different financial priorities?
For decades, the definition of a "necessity" was relatively straightforward. Housing, groceries, transportation, utilities, and healthcare were considered essential expenses, while dining out, gym memberships, rideshares, and regular cleaning services were viewed as luxuries—things to enjoy only after savings had been built and debts had been paid.
Today, however, that distinction is becoming increasingly blurred. Many members of Generation Z and the Millennial generation argue that certain services once considered optional have become essential for maintaining their quality of life. In a world where long working hours, rising living costs, and economic uncertainty are common, convenience is no longer seen simply as a luxury but as a practical investment in time, health, and productivity.
A clear example is Sephora Grey, a 28-year-old attorney in Washington, D.C. She spends a significant part of her monthly budget on meal delivery, rideshares, a gym membership, and a cleaning service. To some observers, these expenses may appear excessive or financially irresponsible. Grey, however, argues that they allow her to work demanding seventy-hour weeks while protecting her physical and mental well-being. Instead of spending several hours each week cooking, cleaning, or commuting, she uses that time to rest, exercise, or focus on her career.
Grey's experience reflects a broader trend. According to a Harris Poll conducted on behalf of Intuit Credit Karma, more than half of Millennials and Gen Z respondents consider spending on hobbies, fitness, and personal interests to be necessities rather than luxuries. Many also report that they would rather reduce their long-term savings than give up experiences that improve their daily lives. Rather than rejecting financial responsibility, they believe they are adapting their priorities to an economy where traditional milestones—such as buying a home or becoming debt-free at a young age—seem increasingly difficult to achieve.
Financial planners recognise that this shift is more complex than it first appears. Georgia Lord, Head of Financial Planning at Corbett Road Wealth Management, encourages clients to ask themselves an important question: Is this spending building something for your future, or is it simply helping you escape from stress? The answer, she argues, determines whether an expense is an investment in well-being or simply another example of unnecessary consumption.
Lord continues to recommend the well-known 50/30/20 rule, suggesting that people allocate approximately 50% of their income to needs, 30% to wants, and 20% to savings or debt repayment. At the same time, she acknowledges that the boundary between needs and wants is becoming increasingly difficult to define. A daily coffee is unlikely to prevent someone from achieving financial security, but dozens of forgotten subscriptions, impulse purchases, and lifestyle inflation can quietly undermine long-term financial goals.
Supporters of this new approach argue that many modern purchases are really investments in time. Meal delivery saves valuable hours after work. A gym membership may help prevent burnout and improve both physical and mental health. Rideshare services reduce commuting stress, while cleaning services allow people to spend more time with family or pursuing personal interests. In this sense, consumers are not simply buying products—they are buying time, energy, and peace of mind.
Critics, however, warn that repeatedly prioritising convenience over saving carries risks. Small recurring expenses may seem insignificant on their own, but together they can amount to thousands of dollars each year. Over time, these habits may reduce emergency savings, delay retirement planning, and make it harder to achieve long-term financial security. They argue that convenience should not replace careful budgeting or financial discipline.
Ultimately, the debate is not really about coffee, gym memberships, or meal delivery. It reflects a broader question about how people define success in an economy that has changed dramatically. Previous generations often believed that hard work and disciplined saving would naturally lead to homeownership and financial stability. Many younger adults, facing higher housing costs, student debt, and economic uncertainty, are no longer convinced that this promise still exists.
As a result, they are making different financial trade-offs. Rather than postponing happiness indefinitely, they are choosing to invest in services that improve their everyday lives while still trying to plan responsibly for the future. Whether this represents financial wisdom or a risky shift in priorities remains open to debate. What is clear, however, is that the definition of a "necessity" is changing, and with it, the way an entire generation thinks about money.
Millennials generally spend less on convenience than previous generations.
Many young adults believe convenience helps them remain productive.
Financial planners recommend eliminating all discretionary spending.
Home ownership has become more difficult for younger generations.
Small recurring expenses always prevent people from saving.
The article argues that younger generations are financially irresponsible.
B. Match each heading with the paragraph.
a. The changing definition of necessity
b. A professional's monthly budget
c. Research on generational priorities
d. Financial experts weigh in
e. Buying time instead of possessions
f. The risks of changing priorities
g. A new philosophy of financial planning
C. Complete the summary with ONE WORD ONLY.
Young professionals increasingly view convenience as a __________ (1) rather than a luxury.
Instead of spending primarily on material possessions, many people invest in services that improve their __________ (2), productivity and mental health.
Although experts recognise these changing priorities, they still recommend following a realistic __________ (3) and maintaining long-term __________ (4).
Ultimately, today's younger generations appear to value time and personal __________ (5) as much as financial wealth.
D. Find words or expressions in the article that mean...
non-essential spending
money left after paying taxes
quality of life
reducing future savings
spending money without thinking
emotional exhaustion caused by work
money left after paying taxes
quality of life
reducing future savings
spending money without thinking
emotional exhaustion caused by work
Discuss.
Have luxuries become necessities?
Is convenience a good investment?
Is spending on mental health always worthwhile?
Are experiences more valuable than possessions?
Is saving becoming more difficult than it was thirty years ago?
Is "buy now, pay later" changing consumer behaviour?
Should financial education be compulsory in schools?
Is financial security more important than enjoying the present?
Is home ownership still an achievable goal for young adults?
Which generation has the healthiest relationship with money?
Have luxuries become necessities?
Is convenience a good investment?
Is spending on mental health always worthwhile?
Are experiences more valuable than possessions?
Is saving becoming more difficult than it was thirty years ago?
Is "buy now, pay later" changing consumer behaviour?
Should financial education be compulsory in schools?
Is financial security more important than enjoying the present?
Is home ownership still an achievable goal for young adults?
Which generation has the healthiest relationship with money?
