For Gen Z, Small Treats Are Worth the Overspend, Even When Budgets Strain

The last thing Naomi Barrales needed was a 30-minute train delay. She already faced a two-hour commute home to central New Jersey. To pass the time, she bought herself two vegan birthday cake cookies. It was a small decision, and one she has made many times since.

Barrales, 25, a marketing associate for a fashion label, began rewarding good workdays with the same cookies, whether that meant a compliment from her boss or a presentation that went well. Later she added a $1.50 Poppi drink. If the office vending machine was out and the local deli charged double, she paid anyway, because she felt she had earned it. "It's something that I can just have and not think about," she said. "I don't have to pinch my pennies."

She is one of many in Generation Z who have embraced what is called treat culture: indulging in small luxuries such as a $12 jumbo coffee, a $5 baked dessert or a $30 key-ring doll called the Labubu, as a reward or a form of self-care, even when the purchase strains a budget. A new survey of nearly 1,000 Gen Z adults by Bank of America's Better Money Habits team found that more than half buy themselves a small treat at least once a week, though many do not feel financially secure.

The idea of treating oneself to cope or celebrate is generations old. It gained pop culture traction in 2011, when an episode of "Parks and Recreation" turned a day of pampering into the motto "Treat Yo Self." What distinguishes Gen Z is the online community built around it. On TikTok, young people post "little treat" hauls after failing an exam or finishing chores, or simply to show off. The tag "sweet little treat meme" has produced more than 23 million videos. Jason Dorsey, a generational researcher and co-author of the book "Zconomy," said the practice has become shared, normalized and celebrated, encouraging others to indulge or at least feel included. With costs rising, the job market shaky and goals like homeownership out of reach for many, he said, small purchases give a temporary sense of control. Gregory Stoller, a professor at Boston University's Questrom School of Business, who gets more than five emails a week from students seeking job advice, said he would likely treat himself too in their position.

The costs can add up. After about a month of treating herself three times a week, Barrales found her checking account roughly $50 lower than usual. "At first, it was harmless, because it was like, 'Oh, it's just $6, whatever,'" she said. "But it compounds, and that's when it starts eating into my finances." In the Bank of America survey, 59% of Gen Z treat-buyers said the habit leads to overspending. Stoller pointed to "buy now, pay later" apps and instant-delivery services as making impulsive spending easier, and noted that many treats are bought on the spur of the moment at bakeries or clothing shops.

Businesses have noticed. Tony Park, owner of Angelina Bakery, which has eight locations in and near Manhattan, up from two five years ago, credits Gen Z with much of that growth. He sells $30 giant croissants and cakes with burnable tops that reveal hidden messages. More than half of his 11,000 weekly customers are Gen Z, he said, and while they may not have much in the bank, "they will spend money on the experience."

A $3 croissant can grow into a $200 shopping splurge or front-row concert tickets. For Angelina Aileen, 23, it became $350 in supplements. After graduating from the University of Pennsylvania in 2023 and landing a financial analyst job in New York, she felt overwhelmed by work pressure and assumed she was the only one struggling. She dropped her daily caffeine, thinking it caused mood swings, and when that failed, bought supplements promoted by a favorite YouTuber to help with anxiety and energy. When subscription boxes began arriving again a month later, she felt buyer's remorse and canceled some. Now a product development manager at a beauty company, she treats herself to a manicure or massage twice a month. "It makes me feel more ready to face something," she said.

Alanis Castro-Pacheco, 22, started during her sophomore year in 2022, amid tension in a dorm she shared with seven roommates. At a guitar shop in her hometown of Enola, Pennsylvania, she charged a bass guitar and amp, about $500, to her credit card, and regretted it at once. Christmas money and learning "Californication" softened the blow, and she now takes $75 biweekly lessons to get her money's worth. Treats have become celebration rather than coping: she bought a Coach tote to mark a new job in July as a strategic partnerships manager at a social media company.

Holly O'Neill, president of consumer, retail and preferred at Bank of America, advises setting a realistic budget or choosing cheaper options, like borrowing a library book. Barrales has done something like that, setting aside $25 from every second paycheck for sweets. She still sometimes overshoots. "But understanding what my habit is," she said, "I might as well just work around that habit."