Mindful Spending Is the New Flex: Save More, Splurge Smarter

Data from Northwestern Mutual’s 2025 Consumer Sentiment survey shows that today’s families are spending carefully and saving for the future.

You may be hearing a lot these days about the “uncertain economy,” and Americans are indeed concerned, according to Northwestern Mutual’s latest Consumer Sentiment Survey. With stubbornly high grocery bills and home prices, affordability remains a challenge even as salaries rise.

But families who spend intentionally feel more in control of their finances, regardless of what’s happening in the larger economy. Intentional spending means avoiding impulse buys while leaving room for well-planned splurges that bring lifetime memories. It also means “spending” intentionally on yourself—by setting money aside for retirement, education or emergencies.

A key success factor is financial mindfulness—being aware of spending habits that can set you back. For example, people who understand how influencers tug at their emotions are less likely to overspend. And those more open to talking about money find that sharing is empowering.

For our survey, we conducted a nationally representative probability poll of 2,511 adults in November 2025. Here’s what respondents are saying about their finances—along with strategies to help you hone good money habits to stay on track toward your goals and gain peace of mind, even in uncertain times.

Earning and saving more but feeling stuck

Our survey found that twice as many millennials (currently age 29–44) and adult Gen Z respondents (age 18–28) are prioritizing saving over maintaining a certain lifestyle—64 percent of both groups. And among people who don’t prioritize saving (31 percent), the majority who are working feel financially behind even though they are making more than ever (56 percent). A similar number (55 percent) admit to spending everything they earn each month.

And it’s not just younger households that are feeling stretched. Among all working Americans, close to half (47 percent) say they’re earning more than ever yet still feel behind financially. That sentiment is highest among millennials (53 percent). And one in three admit to spending everything they earned each month—a figure that climbs to 42 percent among millennial women and 40 percent among Gen Z women.

How budgeting can help

If you’re feeling behind on your finances, consider starting with a budget. A budget is truly a fundamental first step toward financial mindfulness and can help you better understand where your money goes.

• List all your essential expenses, such as housing, education, childcare and groceries.
• Add up what you allocate for savings.
• Total your discretionary expenses, such as entertainment, vacations and restaurants.

Next, compare your spending to your income. You may find you’re spending more than you earn—or not putting enough into savings.

Next, look for ways to save.

• Evaluate discretionary expenses like streaming services, gym classes, subscriptions you rarely use, dinners out.
• Make a grocery list and stick to it—and avoid shopping when you’re hungry. Raw ingredients cost less than prepared meals, so try making more meals yourself.
• Drive less and walk or bike more.

Also consider ways to boost your income.

• A side job could help balance your budget.
• Passive income streams might include rental properties or dividends from a life insurance policy.
• Improve your work skills, perhaps by taking classes or pairing up with a mentor, to help you get a raise or promotion at work.

Spending, and splurging, carefully

Our survey also showed that purchases are more intentional: Nearly eight in 10 respondents (79 percent) said they’re willing to skip small indulgences to save for unforgettable events and experiences—the “core memories” they treasure.

Favorite splurges include sporting events and concerts, with respondents willing to pay up to $546, on average, for a single event. Almost a third of millennials have spent $500 or more on a single live entertainment event. Gen Z adults report being careful, however, with 83 percent saying their spending habits reflect what they can actually afford.

To splurge or not to splurge? Most people do, every now and then, and it’s okay to give yourself a break. Go ahead and make that occasional splurge for something important to you, as long as it’s not an impulse purchase.

• Be sure to pay yourself first. Retirement funding and other savings contributions should come before splurges.
• Add splurge goals to your budget, and stick to the limits.
• Evaluate splurges to make sure they are meaningful.

But buyer beware: Spend guilt is real. In fact, more than half of our survey respondents report usually feeling a sense of regret when they splurge on a purchase. One key takeaway: Respondents with a solid financial plan seem less likely to experience guilt. For example, those working with a financial advisor are less likely to feel remorse (43 percent vs. 53 percent).

Watch out for runaway debt

To avoid spend guilt, pay attention to whether you’re carrying a credit card balance from month to month or relying on buy now, pay later (BNPL) offers. These can be signs that you’re outspending your income.

Credit cards are useful for emergencies and building credit and to accumulate rewards points. But if you don’t pay off your balance every month, the interest can add up. That in turn reduces what you have for your own savings. Think of it this way: Credit card debt means you’re paying compound interest to lenders; saving makes you the lender—and others will pay that interest to you.

Pay off credit card debt using one of the following approaches:

• The snowball method. First pay off the card with the smallest balance while making minimum payments on others. This plan gives you a quick win, so you get motivated. But you may pay more in interest in the long term.
• The avalanche method. First pay off the card with the highest interest rate. You’ll pay less interest in the long run, but you risk getting discouraged, as the card with the highest rate is often the one with the highest balance.

BNPL plans carry similar risks as credit cards. If you use them, be sure to read the fine print, and keep close track of your payment due dates to avoid accidentally overdrawing your bank account or otherwise running into trouble.

The influence of influencers on spending

Trends come and go, but today’s young adults aren’t buying them. Nearly seven in 10 Gen Z adults say they aren’t swayed by social media influencers. And fully 84 percent say they haven’t purchased a product just because their friends or someone on social media said it was “life changing.”

That said, clearly many people are influenced to buy based on social media posts, or companies wouldn’t shell out money and freebies for sponsorships. It’s possible to enjoy social media while resisting the urge to splurge.

• Above all, shop mindfully. When in doubt, wait. Recognize that retailers tug at your emotions with promotions like “Only three left at this price!” That may be true, but tomorrow there might be 10 left—and at a lower price.
• Don’t compare yourself to friends. It’s common to feel that if peers own fashionable clothes or take luxury vacations, it’s okay for you to do the same. But apart from the fact that many people spend more than they earn, you probably don’t know the details of their finances. For example, they might spend more than you on new clothes but less than you on fitness, pet care or private school for your kids.

More young adults are flying back to the nest

With housing costs higher than ever, many young adults are moving back in with their parents. Just 11 percent of Gen Z adults own their own homes, and only 27 percent are renting. The rest? Over half (54 percent) are living with their parents or family.

In the past five years, about a third of Gen Z adults (32 percent) have either moved back home or considered it to save for a big purchase. Those living at home report contributing to the household financially and in other ways.

If you are working, it can be a good idea to pay your parents regular rent every month, even if it’s a small amount. This can help relieve any guilt you might have about moving back in, and it establishes a respectful boundary between you and your parents—you’re not just a “guest.” To that point, discuss expectations around sharing chores, cooking meals, etc., and set ground rules for privacy and guests.

Finally, don’t neglect your own budget. Living at home is a way to save money, but not if you spend all the proceeds on impulse purchases. Consider paying yourself “rent,” meaning setting aside at least some of what you might otherwise be paying to live on your own. This is also a good opportunity to practice living on less spending money, for that day when you’ll have a monthly mortgage payment.

Talking about money is still taboo—but it doesn’t have to be

In an era of oversharing, money remains the ultimate taboo topic. From corporate events to holidays with the family to celebrations with friends, people avoid discussing money at all costs. In fact, among delicate subjects including politics and religion, money is the most avoided topic during social gatherings, according to our survey.

Although half of Gen Z respondents are willing to break the silence on their financial situation (the most of any group), nearly seven in 10 boomers want to avoid it at all costs, which can be a source of tension if grown children move back home.

Despite the near universal reluctance to discuss finances among friends, co-workers and extended family, some sharing can help bring peace of mind in difficult times.

• Your friends, co-workers and relatives are likely experiencing the same challenges as your own family.
• Sharing honest concerns about spending and saving can yield tips on ways to manage money and boost self-confidence (it’s not just you).
• You might even consider “loud budgeting,” which involves sharing openly with friends and family that you’re on a budget.

Professional advice can make a difference

Survey respondents who are working and have a financial advisor are less inclined to feel behind despite earning more than ever. Just 41 percent of those with advisors say they still feel behind vs. 49 percent of those without an advisor. And they’re also less inclined to spend everything they earn each month (22 percent vs. 35 percent).

That said, roughly eight in 10 adult Americans do not currently work with a financial advisor. The survey made clear that people start thinking about financial advice as they age, even though it’s important to start saving while you’re young. Among Gen Z adults, only 5 percent have financial advisors vs. 10 percent of millennials, 23 percent of Gen X, and 37 percent of boomers.

One consequence: Many younger adults lack basic financial tools and products to help safeguard their future.

• Nearly one-third of millennials (31 percent) don’t have a savings account. Gen Z is even more unlikely to have one (36 percent).
• Almost seven in 10 Gen Z (66 percent) and 43 percent of millennials say they don’t have a retirement account.
• Almost eight in 10 Gen Z (76 percent) and 66 percent of millennials don’t currently have an emergency fund.

At the same time, Americans are comfortable getting help in other areas of their lives.

• While four in 10 Americans have made one or more wellness trend purchases this year, about half as many currently work with a financial advisor.
• Americans overall are nearly as likely to work with professionals like a life coach, therapist, nutritionist, spiritual guide, astrologer or personal trainer (15 percent) as they are to work with a financial advisor.
• And they are just as likely to hire help with house cleaning or lawn care (21 percent) as they are to hire a financial advisor to help manage their finances (20 percent).

Financial stress is common; solutions are within reach

If you’re feeling stressed about money even though you may be earning more than ever, you’re not alone. Reach out to your Northwestern Mutual advisor. They can help you be more mindful about spending, so you can find financial balance and achieve your goals.