Gen Z considers skin care essential expense as financial priorities shift

A survey from Intuit’s Credit Karma has revealed that nearly a quarter of Gen Z adults in the UK consider skin care and beauty treatments essential expenses, even more so than long-term savings for the future. The research highlights how young adults approach spending to prioritize shorter-term emotional, physical, and social well-being.

The survey found that 22% of 18 to 24-year-olds cited skin care and beauty treatments as necessary for maintaining their quality of life.

Notably, 24% of adults across all age groups currently view spending on mental well-being as important as basic living costs such as food and housing. Among adults aged 25–34, the figure increases to 39%.

Akansha Nath, international general manager at Intuit Credit Karma, explains: “Gen Z is redefining the meaning of essential spending, ensuring their emotional and physical health and social needs are met too.”

However, she notes that this shift can lead to financial trade-offs, with some adults incurring debt to sustain their lifestyle.

Essential self-care

The study reinforces Gen Z’s growing prioritization of holistic approaches to health, as the generation sacrifices expenses that older generations might have prioritized, such as home ownership.

While gym memberships (27%) and streaming subscriptions (25%) were also cited as essential, skin care and beauty treatments’ presence among the top categories signals a deepening emotional significance of personal care routines.

Many respondents acknowledged forfeiting long-term savings or taking on debt to maintain their chosen lifestyle standards.However, as these priorities shift, the study spotlights the broader financial impact.

Nath says that for consumers who want to maintain their ideal standard of living, credit monitoring and responsible borrowing tools are increasingly positioned as possible aids in maintaining financial stability amid this new balancing act.

Targeting two-in-one 

As skin care and beauty treatments move beyond luxury items into essential self-care for many young consumers, the growing demand for services and products supporting physical appearance and emotional well-being becomes more apparent.

“Eighty percent [of Gen Z consumers] use beauty products as a tool to support their mental health, and 76% consider emotional and mental well-being a key factor in their purchasing decisions,” Heloise Bouchez, global product manager for Advanced Actives at Symrise, previously told Personal Care Insights.

This changing mindset presents new opportunities and challenges for the personal care sector. Brands are increasingly pressured to simultaneously address aesthetic concerns, mental health, and stress management needs.

Neurocosmetics is emerging as a science-backed solution to bridge the gap between external appearance and internal well-being. Products that offer sensorial experiences, mood-boosting, or stress-relief benefits increasingly resonate with Gen Z consumers as they seek comprehensive self-care.

Financial literacy

The intersection of financial literacy and self-care is in the spotlight as Gen Z increasingly holds consumer power and navigates economic uncertainty. Gen Z sacrifices expenses that older generations might have prioritized.

Earlier this month, Intuit’s 2025 Prosperity Index found that, while Gen Z prioritizes quality of life over accumulating wealth, 98% of young adults still cite the cost of living as their number-one financial concern. This creates a tension between maintaining well-being and ensuring economic security.

The index suggests that younger generations value “peace of mind” over traditional markers of success, such as salary or material wealth. However, they are also actively seeking to build financial resilience.

Based on this index and in response to the need for stronger financial skills among young consumers, beauty brand E.L.F. recently partnered with financial technology company Chime to launch “Fortune Island: Earn Learn Flex,” a financial literacy game on Roblox — aiming to educate young players about personal finance through an engaging and social platform.

The initiative responds to findings that over 50% of Gen Z aspire to become entrepreneurs and that one-third struggle with confidence in managing finances. Through gamified learning, the brand hopes to bridge the knowledge gap and empower the generation to make informed financial decisions.

Further reflecting Gen Z’s financial mindset, Revieve CEO Sampo Parkkinen recently told us that Gen Z does not adhere to taut spending habits when it comes to the products they purchase. He noted: “Gen Z is not sticking to one price point — they are dually investing in high-end products and budget-friendly finds.”