Cash App’s trends report reveals young people’s spending habits

On peer-to-peer payment app Cash App, “food” is the No. 1 word used most in transactions, according to the company’s latest trends report. This shouldn’t come as a surprise to anyone who has debated how to split the bill after a group dinner and ended up with one person footing the bill while everyone else pays it back.

After Essen, “gas” and “love” were the most popular words in Cash App transactions. Other popular mentions include “love,” “rent,” and “birthday.”

One thing these words have in common is that they seem to imply a social connection, such as friends and family sending each other money to eat out, travel, or celebrate special occasions.

“This data is really about how people spend their free time and how they interact with other people culturally,” Lindsay Bryan-Podvin, financial therapist at Cash App, tells CNBC Make It.

Bryan-Podvin says trends like these can also help individuals feel on par with their peers when it comes to their spending habits.

“So many of my clients have some version of the question, ‘Am I normal? Do other people do that?’” she says. “When it comes to how much people have, how much they borrow, or what they spend money on, this snapshot gives us a really nice way to say, ‘Yes, actually you are normal.'”

Here are some of the other spending trends Cash App has identified and what they can tell us about our collective money habits.

According to the data, Cash App users among Generation Z and Millennials, ages 18 to 44, largely move money through the app to pay for leisure activities and self-care.

“Mentions like ‘sweet little treats’, ‘pickleball’ [and] “Mocktails” signaled to me that these generations are really saying, “I want to take care of myself and I’m not going to be ashamed of it,” says Bryan-Podvin.

Recognizing these trends can help people feel normal about their own spending habits. But they could also reflect a culture in which people are pressured to spend money on things that are fun.

Discretionary spending is okay and important in moderation. But if you’re spending money just to keep up with trends or doing what your friends are doing at the expense of your financial well-being, it might be a good idea to educate yourself about your financial goals and priorities, says Bryan-Podvin .

“I always think it’s about coming back to your own personal values ​​and what’s important to you,” she says.

If spending on concerts or clothing is important to your identity and self-expression, that’s okay. However, depending on your budget, this may mean sacrificing other things.

“If we really think about what trends you want to be a part of, [make] Make sure these are the things that align with your values,” says Bryan-Podvin.

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