That little treat costs a lot: How Gen Z’s habit of rewarding themselves is hurting their money and mind

Life is stressful. But everywhere you turn, there are coping mechanisms and wellbeing trends to help people manage their worries about the state of the world. Even Gen Z has found their way to contend with this everyday stress — treat culture, wherein they treat themselves with small purchases like snacks or conveniences as a form of self-care, coping, and positive reinforcement.

However, this phenomenon of daily or weekly indulgences isn’t helping Gen Z as they believe. In fact, it could have the reverse impact of draining one’s finances, adding to their financial woes.

How, you ask? We have the answer here.

What is treat culture?

Had a rough day at work? You gift yourself a cookie.

Achieved all your health goals at the gym? You surely deserve a skincare pampering.

Had a fight with your BFF? You must overcome this grief with a meal at a restaurant.

All of these little acts are part of the treat culture, which has become an intrinsic part of life for most Gen Z adults. They’re micro-moments of joy that Gen Z are increasingly relying on to feel grounded and in control.

While treat culture has been around for decades — it gained traction in 2011 with a television episode of Parks and Recreation in which characters celebrated a day of pampering with the motto “Treat Yo Self” — it has seen an explosion, courtesy Gen Zs, who have built an online community around the tradition, promoting it on their social feeds as a way to care for their mental health during uncertain times.

In fact, Daniel Levine, director of consumer trends consulting firm Avant Guide Institute, told Fortune, “While treat culture isn’t new, Gen Z is taking it to a “new level. For instance, on TikTok, the tag “sweet little treat meme” has resulted in more than 23 million videos.

What’s fuelling this treat culture?

For Gen Z, treat culture is a coping mechanism or a form of resistance to societal pressures. Many psychologists note that this trend has exploded in recent times because Gen Z has come of age during this economic instability, coupled with the Covid-19 pandemic, climate anxiety, and overall social upheaval.

Take the case of Angelina Aileen, a 23-year-old graduate from the University of Pennsylvania. After passing out in 2023, she was struggling at her job. So, she began to alter her routine, like skipping her daily caffeine, which she believed was giving her mood swings. Then one day, her favourite YouTuber spoke about a supplement routine, which prompted Aileen to purchase them too.

However, she was soon addled with buyer’s remorse and resorted to a gentler approach to self-care, doing smaller treats like a manicure or massage twice a month after work.

Many experts note that treat culture isn’t just about the treat itself, it’s also about the emotional experience – that is, how you feel about purchasing and having the treat. As one report pointed out, the phrasing of buying yourself a “little” treat reflects an element of cuteness.

Cuteness can prompt powerful emotions of happiness and remind us of nurturing and protective qualities. In a way, partaking in treat culture is a way to nurture ourselves.

The proliferation of online shopping and food delivery apps has also helped drive treat culture. Having access to a range of products as diverse as skincare to food items at the click of a finger has truly enabled Gen Z to indulge in treat culture.

There’s also the ‘buy now, pay later’ apps and instant-delivery services that is making it easier than ever to spend impulsively. In fact, often, these “little treats” are bought in the spur of the moment at stores like bakeries or clothing shops.

What is the financial impact of Gen Z’s treat culture?

But while this treat culture is good for brands and consumerism, it has a negative impact on Gen Z’s wallets.

Think about it, for every small treat that Gen Z indulges in — a sheet mask, a fridge magnet, or a meal out at a restaurant — they are spending money, which is bound to have an effect on one’s wallet. A Bank of America report from July reveals that 57 per cent of Gen Zs buy themselves a small “treat” at least once a week, which has resulted in overspending for 60 per cent of Gen Zers.

And this doesn’t bode well for Gen Zers, who already struggle in a shaky job market and are unable to reach significant economic milestones, including buying a house. As Abhishek Kumar, a Sebi-registered analyst and founder of SahajMoney, told India Today, “Little treats are like small leaks that can drain a tank if left unchecked. Individually, they may seem insignificant, but over time they compound and can strain your finances.”

Holly O’Neill, president of consumer, retail and preferred at Bank of America, has said that anyone participating in treat culture should consider setting a realistic budget or finding more sustainable alternatives, like borrowing a book from a library, so it doesn’t become impulsive or lead to overspending.

What about the psychological impact of treat culture?

But it’s not just about the money. Some psychologists have found that treat culture could also hurt a person’s well-being.

They note that treat culture helps with instant gratification rather than a long-term fix. Instead of addressing deep mental needs, some Gen Z use treat culture for relief. Some even point out that treat culture fuels the need to keep up with one’s peers. For instance, you see your friend indulging in matcha drinks after a long day’s work. You suddenly feel the urge to spend on matcha drinks yourself.

Some commentators also argue that treat culture preys on young consumers’ insecurities, for example, about their skin, perpetuating a cycle of needing to buy more skincare products in search of easy “fixes” for imperfections.

Shreya Kaul, a counselling psychologist based in Delhi-NCR, also told India Today that she finds treat culture an incomplete way of coping. “If treating yourself becomes the only form of coping, it risks ignoring deeper emotional, physical, and mental well-being needs,” she says.

Most experts note it’s all about balance: Everyone deserves a little treat from time to time, but only until it doesn’t take a heavier toll in the long run.

With inputs from agencies