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Think Gen-Z is all about avocado toast and $20 smoothies? Think again. Economic pressure is reshaping how young adults plan their meals, turning grocery carts and dining tables into strategic financial battlegrounds.
According to a Bank of America report, 64% of Gen-Z is actively cutting expenses to cope with the higher costs of living. Specifically, 23% are spending less on dining out, and 41% are shopping at more affordable grocery stores.
To accumulate more savings, the right credit card that rewards dining and grocery purchases can complement young adults’ strategic food shopping.
Cutting Costs Without Cutting Flavor
Amid today’s soaring prices, a new report from Bank of America’s Better Money Habits team reveals 33% of nonstudent Gen-Z adults receive financial help from their parents, and 27% rely on family support for essentials like groceries, rent, phone plans and health insurance—not luxury splurges.
Rising food prices have made planning meals tougher for Gen-Z. Instead of dining out, many are getting creative—switching from pricey brands to store labels and learning how to meal prep at home. It’s not just about saving money; these trends reflect ways young adults are continuing to consume their favorite meals without overspending.
Dining out is still on the table—but with a twist. Gen-Z is cutting back on how often they eat at restaurants, but when they do, they’re more intentional. They share plates, take advantage of promotions or stick to budgets for dining out.
Additionally, the same report found that over half of young adults spend nothing on dates each month, a striking sign that romantic dinners are being replaced with budget-conscious hangouts at home or free outdoor activities.
Leveraging Credit Card Rewards To Stretch Food Budgets
One savvy way people can stretch their food budgets is by using a credit card that offers elevated rewards on grocery purchases and dining out. Many cards now offer boosted cash back on groceries, restaurant purchases and even food delivery services—purchase categories young adults still enjoy spending in, but are more financially conscious of.
The Chase Sapphire Reserve® stands out for food lovers willing to pay a higher annual fee. New cardholders can earn a massive welcome offer: 100,000 bonus points, plus a $500 Chase Travel℠ promo credit after spending $5,000 on purchases in the first three months from account opening.
Beyond the bonus, the card rewards dining heavily, with 8 points per dollar on all purchases through Chase Travel℠, including The Edit℠, 4 points per dollar on flights and hotels booked direct, 3 points per dollar on dining worldwide and 1 point per dollar spent on all other purchases.
It also comes with $300 in annual dining credits, a year of DashPass delivery service and exclusive DoorDash promos, making it a solid pick for Gen-Z and others looking to maximize cash back while eating out or ordering in. These perks and credits, when utilized in full, also help offset the card’s $795 annual fee.
If you want to avoid an annual fee, the Bilt World Elite Mastercard® (rates & fees) is worth a look. Known chiefly for offering rewards on rent payments, it also shines in dining rewards, earning 1 point per dollar on rent payments without the transaction fee (on up to 100,000 points each calendar year), 3 points per dollar on dining, 2 points per dollar on travel (when booked through the Bilt Travel Portal or directly with an airline, hotel, car rental or cruise company) and 1 point per dollar on other purchases. The card must be used at least 5 times each statement period to earn points.
Plus, every time you earn 25,000 points, you unlock Milestone Rewards. These can include bonus points for purchases at grocery stores, providing budget-conscious foodies further value.
Bottom Line
Gen-Z’s approach to food spending shows just how seriously they take control of their money. By dialing in with budgeting, finding creative places to shop and using credit cards that reward grocery and dining spending, Gen-Z is putting themselves in a better spot financially.