Millennials, Gen Z Embrace ‘Revenge Saving’ Trend
Aggressive savings strategies are gaining traction among younger generations to focus on budgeting, cutting costs and boosting savings for goals like homebuying.
NEW YORK — Once driven by post-pandemic "revenge spending," many Americans are now turning to "revenge saving," an aggressive strategy to rebuild financial control amid rising interest rates, inflation, and economic uncertainty.
The trend is gaining traction among Millennials and Gen Z, who have average savings rates of 5.3% and 4.4%, respectively. This is less than previous generations that saved between 6.8% and 8.88%.
Across social media, the "no-buy 2025" challenge has taken root, with more people reducing spending beyond the essentials to limit overspending and to save more money, which they could use to buy a home or make a large purchase.
The results of the 2025 National Association of Realtors® Home Buyers and Sellers Generational Trends study show that 20% of millennials and 33% of Gen Z believe saving for the downpayment on a home is most difficult part of the homebuying process.
Many are turning to budgeting apps, canceling unused subscriptions, using automatic monthly savings transfers and choosing lower-cost activities. To store funds safely and accessibly, younger generations are turning to certificates of deposit and high-yield savings accounts.
Bobbi Rebell, CFP and personal finance expert at CardRates.com, said, "The beauty of revenge saving is that the minute you start saving, the thrill begins and will continue, and the benefits will amplify as the savings grow through contributions – and if it is invested well, through compound growth."
Source: Realtor.com (07/08/25) Bizouati-Kennedy, Yael
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