In the face of mounting economic pressures, it appears Gen Z has seized on the “little treat" purchase: a small, often viral commodity — from a trendy vinyl toy to an oversized pastry — meant as a morale boost.
A Bank of America survey found that 57% of Gen Z buys a weekly “treat,” and for 59%, this routine leads to overspending. As this spending habit becomes a cultural signature — the trend is even crystallized by TikTok hashtags, according to the New York Times — the question emerges: are little treats an acceptable form of self-care, or are they a financial trap? Experts warn that the line between a budget-friendly boost and a harmful habit is thin.
“The key is to ensure that these purchases align with broader financial goals, rather than serving as a form of escape from financial anxiety itself,” Julien Brault, founder of personal finance website MooseMoney, told Benzinga.
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The ‘Joy Fund': Budgeting for Bliss
Millennials are all too familiar with the much-maligned phenomenon of overspending on indulgent little treats — avocado toast being that generation's symbolic stand-in. The universal advice from financial pros is not to eliminate treats though, but to plan for them intentionally. The most common strategy recommended: creating a dedicated fund for discretionary spending.
“One hack that makes the budgeting process easier is the creation of a ‘fun fund',” Brigitte Killings, managing director of community & business development at JPMorgan Chase, told Benzinga. “This is money set aside specially for things that bring you joy… Simply setting aside $20 a week can add up to something fun without hurting your long term financial goals.”
This sentiment is echoed by Westerra Credit Union Senior Content Manager Clorissa Ritchie, who calls it a "joy fund." Ritchie told Benzinga to “allocate a percentage of net income — usually 5 to 10% — for personal enjoyment.”
For those who find traditional budgeting restrictive, ARC Wealth CEO Anthony Rasotto told Benzinga to take a “reverse budget” approach. “Automate savings, allocate cash for fixed expenses… and then they can spend the remaining cash guilt-free," he said. "That way, it’s not overspending, it’s spending what’s left over in their budget.”
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The Red Flags: When a Treat Becomes Financial Self-Sabotage
The experts agree on the biggest financial red flags, and they almost always involve how the treat is funded.
“The biggest red flag is when these purchases are funded by credit or taken from emergency savings,” warns Ritchie.
Brault is more blunt: “A red flag is relying on credit to fund these small wants. If you’re using a credit card for morale purchases and not paying the balance monthly, those tiny expenses are coming at a high interest cost," he said. "That’s no longer self-care, that’s self-sabotage in disguise.”
David Dowhan, chief product officer at SavvyMoney, points to the “invisibility” of small transactions. “What concerns me more is how people are funding these purchases," he told Benzinga. "If someone is leaning on buy now, pay later, credit cards or overdraft protection to cover frequent small purchases, that’s when a morale boost becomes a financial liability.”
According to Lending Tree, the average interest rate on credit cards is about 24%.
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Different Perspectives on Spending
Most advisors advocate for a disciplined, earnings-based approach to treats. “I don't think [Gen Z] can navigate the morale benefits,” Kyle Chapman, a licensed fiduciary at Asset Preservation Wealth & Tax, told Benzinga. “I think they should force themselves to earn this ‘treat’… by making sure they pay themselves first by saving 20% of their income before spending.”
However, others advocate for other, more nuanced financial strategies. One amongst them is a Gen Zer himself, Colin Sahagun, the 21-year-old founder and CEO of fintech company Stelrix. He told Benzinga the "little treat" narrative is overblown. “A $7 coffee or a $15 impulse buy isn’t the problem. The real issue is that we’re calling it ‘overspending’ when the actual problem is under-investing," he said.
His philosophy? “Invest first, spend second,” he said. “If you’re putting money into your portfolio consistently, even small amounts, then spending $20 to $30 a week on things that make you happy isn’t overspending.”
Ultimately, the consensus is that little treats have a place in a healthy financial life, but only with a plan. So enjoy the occasional giant croissant just don't fund it with tomorrow’s money — whether that be by amassing credit card debt, depleting your savings or missing out on opportunities to invest.
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