Lifestyle Creep and Its Financial Consequences on Generation Z and Millennials
Authors/Creators
- 1. Department of commerce, Sant Sohirobanath Ambiye Government College and Research Centre, Virnoda, Pernem, Goa
- 2. Department of commerce, Sant Sohirobanath Ambiye Government College and Research Centre, Virnoda, Pernem, Goa,
Contributors
Editor:
Description
Abstract
This study examines lifestyle creep — the gradual rise in spending as income grows — and its financial consequences on Generation Z (born 1997–2012) and Millennials (born 1981–1996). Primary data was collected via a structured questionnaire from 200 respondents in Goa (100 Gen Z, 100 Millennials). Statistical tools — Mean, SD, Independent t-test, and Pearson's Correlation — were applied using Jamovi. Gen Z shows significantly higher lifestyle creep (t = 10.9, p < 0.001). Psychological factors are the strongest driver (r = 0.595). Contrary to expectation, financial literacy does not reduce lifestyle creep (r = 0.281). Lifestyle creep is positively linked to adverse financial consequences (r = 0.340). The study concludes lifestyle creep is primarily behavioral, requiring behavior-focused interventions beyond conventional financial literacy programs.