40% of Gen Z expect to spend more in 2025 than last year — make sure to use the right credit card
Gen Z is opening up their wallets a bit more this year than last. According to a recent Northwestern Mutual study, almost half (40%) of this young cohort expect to spend more in 2025 than in 2024, well outpacing other generations.
More spending generally encourages more opportunities to earn rewards, but only if you use the right financial tools. Below, CNBC Select looks at some popular Gen Z spending categories — and the credit cards that provide the most bang for their buck in each category.
Other generations are cutting back on travel spending, but not Gen Z. According to Berkshire Hathaway's 2025 State of Travel Insurance Report, millennials decreased their annual travel spend from 2023 to 2024 by just over 15% while Gen Z's annual travel spend went in the opposite direction, up by about 20% to $11,209.
If travel is at the top of your bucket list for summer and beyond, using the right credit card not only provides you with extra protection but also rewards you for your spending. The Chase Sapphire Preferred® Card (see rates and fees) is one of the top travel cards on the market, and it comes with primary rental car insurance, trip cancellation and interruption insurance and baggage and trip delay insurance. You'll also earn valuable Chase Ultimate Rewards® points with your spending, which can be redeemed in a handful of ways, from simple statement credits to taking advantage of Chase's transfer partners.
On Chase's site
On Chase's site
Points are worth 25% more when you redeem them for travel booked through Chase TravelSM.
Good to Excellent670–850
19.99% - 28.24% variable
$95
Earn 60,000 bonus points
See rates and fees. Terms apply. Member FDIC.
Read our Chase Sapphire Preferred® Card review.
The Chase Sapphire Preferred® Card packs a punch for a $95 annual fee card, offering annual travel credits, comprehensive travel protections and more.Either $5 or 5% of the amount of each transfer, whichever is greater
Here's a hypothetical example of how you could benefit from the Chase Sapphire Preferred. Say you spend the Gen Z average of $11,200 (we rounded down) on travel using this card. Half of that travel was bought through the Chase TravelSM portal, which earns an elevated 5X points per $1, making the $5,600 spent worth 28,000 points. The other $5,600 you spent on travel outside the portal, earning you 2X per $1, or 11,000 points. This brings you to a grand total of 39,000 Chase Ultimate Rewards points or almost $400 in value (at 1 cent per point). If you cash in these points through the Chase Portal or via transfer partners, you could be getting even more.
The flexible rewards you can earn via travel spending, plus the several protections the card offers, make it one of the top options for those looking to splurge on travel.
A Bank of America Institute study found that Gen Z discretionary spending in categories like entertainment and travel went up 25.5% from 2023 to 2024, and it's trending up YoY from this year to last.
If entertainment is a big spending category for you, know that certain credit cards get you access to presale and VIP tickets for concerts, sports games and exclusive events.
American Express cardholders, for example, benefit from special Amex Experiences, including theater shows and concerts, with some more exclusive events tied to higher-tier cards. The Platinum Card® from American Express will get you access to Amex's Premium Events Collection™ (previously By Invitation Only®) where you'll get access to exclusive events unavailable to other cardholders; some past examples include VIP Access to the Monaco Grand Prix and advanced screenings of the award-winning show . The card also comes with several statement credits, including a $200 hotel credit* and a $200 airline fee credit (enrollment required), both of which help offset the travel costs for your next entertainment getaway.
*
On the American Express site
On the American Express site
The Amex Platinum Card provides access to Amex Centurion Lounges, Delta Sky Clubs, Lufthansa Lounges, Escape Lounges and more. (Enrollment required)
Good to Excellent670–850
See Pay Over Time APR
$695
Earn 80,000 Membership Rewards® Points after you spend $8,000 on purchases on your new card in your first six months of Card Membership
See rates and fees, terms apply. Read our Amex Platinum Card review.
The Platinum Card® from American Express is a premium card loaded with annual statement credits, entertainment benefits, extensive airport lounge access, elite status perks and more. (Enrollment required for select benefits mentioned)N/A
None
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.3.60% APY as of 5/8/2025Min balance to open = $0
On the American Express site
Terms apply.1.00% APY as of 06/24/2024Min balance to open = $0
American Express National Bank is a Member FDIC.
Terms apply.
While the Amex Platinum Card does come with a bit of a higher annual fee, between the access to exclusive events and sheer amount of statement credits, this card can generate over $1,500 in value for the right event-goer.
Gen Z is spending more at restaurants, increasing their dining out spend by 14.3% compared to last year, while the general population's spending rose by just 2.6%, according to the Bank of America Institute study.
Using a credit card that earns dining rewards can help cover the cost of future meals.
Whether dining out or ordering in, the U.S. Bank Altitude® Go Visa Signature® Card is a good fit for no annual fee. More accessible than some premium cards, you'll earn 4X points on dining, takeout and restaurant delivery on your first $2,000 each quarter. This credit card from U.S. Bank also earns 2X points on streaming services and comes with a $15 credit for Netflix and Hulu — making ordering in just as rewarding.
Personal and small business credit cards issued by U.S. Bank are currently not available on CNBC Select. Click "Learn More" to review other credit card offers.
Personal and small business credit cards issued by U.S. Bank are currently not available on CNBC Select. Click "Learn More" to review other credit card offers.
Personal and small business credit cards issued by U.S. Bank are currently not available on CNBC Select but you can check out our marketplace to compare offers from other issuers including American Express and Chase.N/A
See terms
See terms
See terms
*See rates and fees, terms apply.
Information about personal and small business credit cards issued by U.S. Bank has been collected independently by CNBC Select and has not been reviewed or provided by the issuer prior to publication.
Gen Z or not, maybe you simply want a credit card that rewards kind of spending.
For that, a flat-rate cashback credit card is the perfect addition to your wallet.
The Citi Double Cash® Card earns you 2% cash back on all your purchases (1% when you buy and 1% when you pay your bill). The card has no annual fee and there's no cap on the amount of rewards you can earn. You can redeem your cash back via statement credit, direct deposit or through one of the other options, including at Amazon.com.
On Citi's site
On Citi's site
Receive a 0% intro APR for 18 months on balance transfers.
Fair to Excellent580–850
18.24% - 28.24% variable
$0
Earn $200 cash back
See rates and fees, terms apply.
Read our Citi Double Cash® Card review.
The Citi Double Cash® Card is one of the best no-annual-fee cash-back cards thanks to its straightforward rewards structure.There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.
3%
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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