How younger generations are budgeting by ‘revenge saving’

DETROIT (WXYZ) — Revenge Saving is not just a trend; it’s becoming a way of life for some, and experts say it’s all a reaction to inflation and economic uncertainty.

Watch the video report from Peter Maxwell below

How younger generations are budgeting by ‘revenge saving’

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“Just trying to save money, keep a little bit of money in the bank, so just in case something goes wrong, you have a little bit saved up,” said Tom Cassell.

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“I try to be a little frugile in good ways,” said Michael Bokos.

Michael told me he no longer gets lunch on the town during the work week, instead opting to prepare meals at home in an effort to save money.

“I try to every Sunday night go to Kroger and get chicken, beef, and vegetables,” Michael said. “I’ll make my own food and bring it into work.”

Michael and many others that I spoke with are now saving more of their paychecks rather than spending them, putting their finances first by doing what’s now being called ‘revenge saving’. It’s the latest trend in how younger generations are now prioritizing their savings, rather than spending.=

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“Just seeing the money leave my account and seeing how much the food adds up every single day and how much I can save by cooking at home and get groceries,” said Neveda Hicks-Brown.

It’s the complete opposite of what many were doing post-pandemic, when people were eager to get out and spend money once the lockdowns were lifted.

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“During the pandemic, we were at home and so we were spending more,” said Anthony Phillips.

Revenge saving has become the latest trend among Milennials and Gen Z. A recent Deloitte survey shows 48 percent of Gen Z and 46 percent of Millenials do not feel financially secure.

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“Revenge savings, is this emotional response to a very intellectually good thing. Which is to put money aside to make sure you have that rainy day fund,” said financial expert Bill Dendy.

Economic challenges like inflation, tariffs, rising costs and financial instability are key factors pushing people to save.

“People are responding emotionally very quickly to aggressively saving to cut down their budgets,” Bill said.

While some people might be emotionally responding to this trend, others are just planning for future financial success.

“Especially just getting out of college, I want to save as much as I can, get a house in a few years, live comfortably in a few years, but work hard now,” Michael said.

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