Why Millennials & Gen Z Are Spending on Experiences (Not Stuff)

In recent years, Millennials and Gen Z have sparked a cultural shift: today’s younger generations are splurging on experiences—concerts, travel, workshops—instead of chasing material items.

According to an SBJ analysis, the trend reflects a deeper shift in values: memories and emotions now outshine possessions in worth.

Why Experiences Outweigh ‘Stuff’

Research supports this swipe toward experiential spending. A Business Insider study reported that around 78% of Millennials preferred spending money on experiences versus things, while 69% said experiences fostered greater social connection.

Meanwhile, Gen Z similarly values emotional resonance and long-term memories—as experiences are tied to personal growth and storytelling.

Emotional Bonds & Lasting Memories

For both generations, experiences offer sustained happiness that material items often fail to deliver.

The thrill of anticipation before an adventure, the shared joy while immersed in it, and the fond remembrance long after all create deep emotional benefits. It’s the story behind the memory—not the item—that carries weight.

Influences Driving the Shift

Several intersecting forces explain the shift toward experiences:

• Social Media Culture: Sharing moments online makes experiences more meaningful and dynamic than possessions.
• Sustainability & Minimalism: Eco-conscious Millennials and Gen Z often reject accumulation in favor of mindful consumption.
• Economic Realities: At a time when housing and living costs are rising, experiences offer accessible fulfillment for those who can’t always afford material accumulation.

When Gifts Become Experiences

The trend isn’t just about choosing one over the other—it’s changing how we celebrate life events. Many are opting to give experiences—like travel, spa days, or concert tickets—over traditional gifts.

One mom reported her son enjoyed a day out with a friend far more than any toy, prompting a new family tradition focused on shared moments.

Business Impacts & How Brands Can Adapt

This generational preference is reshaping industries, especially travel, hospitality, and entertainment. Brands that embrace immersive, story-driven offerings are capturing this market.

From pop-up art installations and wellness retreats to tech-enhanced tours and eco-adventures, businesses that cater to authenticity and emotional connection are winning audience engagement.

You might also want to read: Gen Z Are Less Happy Than Everyone Else Because of This