Here's what's on Gen Z's 'micro-spending' wish list

• Gen Z is choosing "micro-spending" over traditional financial milestones, analyst Riani Kenyon said.
• Young consumers are focusing on collectibles and self-expression amid financial uncertainty.

Twenty-somethings are ditching traditional financial milestones in favor of filling their wish lists with more instant forms of gratification.

Instead of buying homes and starting families, they're "micro-spending" on more affordable items, Riani Kenyon, an anthropologist and Gen Z behavioral analyst at market research firm Canvas8, told Business Insider.

A recent report from Morning Consult showed that young women are splurging on concert tickets to see popular artists, while men want to be the first to try new tech devices. Ellyn Briggs, the brands analyst who authored the report, told BI that Gen Z are "big spenders" who aren't afraid to splash out on whatever hot, new item is making the rounds on TikTok.

In fact, US consumers between the ages of 24 and 38 have the most discretionary spending power of all age groups, famed businesswoman Meredith Whitney wrote in an op-ed for the Financial Times, citing American Express data.

One major reason for that: many still live at home with their parents "and likely pay very little" in expenses like heating, insurance, or utilities, she wrote. So even if they can't afford to move out, Gen Z and millennials are still spending money — and helping keep the economy afloat.

Enter trinkets, trends, and self-expression — three factors that seem to be driving Gen Z to part with their cash, and which "act as expressions of identity and status while also offering comfort in a financially uncertain world," Kenyon said.

Gen Z is collecting trinkets

"Our research shows a significant portion of Gen Z is interested in collectibles like art, sneakers, and fine wine, viewing them as alternative investments to traditional assets such as stocks and bonds," Kenyon said.

Some tangible investments are more unusual, however. Take Sonny Angel dolls. The collectible figurines experienced a worldwide shortage earlier this year as Gen Zers in the US became obsessed with having them all, a spokesperson for Sonny Angel distributor Dreams USA told BI.

Gen Z influencer Bretman Rock's Sonny Angel unboxing videos have raked in millions of views on TikTok as the dolls became nearly impossible to find in person. They regularly sell for more than their retail price online.

When they are available online, one Sonny Angel box can sell for $10 to over $35. While this may seem strange to some, Kenyon said collectibles like this provide "immediate enjoyment," and they could even have long-term value.

They're adhering to trends

As the TikTok For You Page refreshes, so do the hot new items that Gen Zers must have.

Briggs told BI that "keeping up appearances" is a big part of being online, and Gen Zers often spend money because they want to "look a certain way" on social media.

For 28-year-old TikToker Shawn Owens, one of those trendy must-have objects is a phone case made by Hailey Bieber's Rhode. It's become a statement accessory on Bieber's Instagram feed, and she recently teased new colors that could come soon.

"That is a thing I have to have this fall for bathroom selfies," Owens said.

Lip gloss phone cases and fancy water bottles (Stanley and Owala stand out as favorites) have also become massively popular with young people, helped by going viral on social media. Kenyon calls them Gen Z's "emotional support objects."

"These objects fill the emotional gap left by strained social connections, becoming symbols of self-care and security," she said.

But Gen Z is still finding ways to express themselves

Whether it's experiences like concerts or attending a friend's gatherings, Briggs said Gen Z wants to express themselves and feel a sense of autonomy.

That's reflected in shopping for new outfits. "Everyone is kind of leaning into personal aesthetic," Owens told BI.

For some, that means upgrading their style by moving away from the quiet luxury trend and saving up for expensive statement jewelry, according to both Owens and Kenyon.

"These pieces not only serve as expressions of self but are also seen as valuable investments," Kenyon said.