The generation Z and Millennials are prioritizing their investments in health and fitness. According to a report by McKinsey & Company, these groups are allocating a significant portion of their income to wellness products and services, outperforming previous generations. This trend is visible, for example, in Planet Fitnesswhere former CEO Chris Rondeau noted that the membership of the Gen Z on the network was “off the charts.”
Taylor Priceknown as the “Gen Z money expert,” recommends spending between 5 to 10 percent of income to health and exercise. “This ensures that we keep health as a priority without overshadowing other crucial financial commitments,” Price told Washington Post.
An important reason behind this trend is that Generation Z sees exercise not only as a physical good, but also as essential for mental health. Additionally, Price mentioned that “the fitness culture and aesthetic on social media also significantly influences Gen Z.”
Nicole MacMillan36, living in DC, is part of these groups that spend large amounts on gym memberships, personal trainers or exercise classes.
MacMillan, who works at a health technology company, spends about 10 percent of his income—more than $18,000 annually— to these activities, as published by Washington Post. “Exercise has become a functional pillar in my life. It gives me the opportunity to compete against myself and have goals that I can set and exceed,” he commented to the North American media.
Spending on exercise is also justified by its social benefits, especially for those who work from home. Emily Guthriea 26-year-old software engineer from Oceanside, Californiaspends about $950 a month on a personal trainer and a gym membership, which represents 15 percent of his after-tax income.
According to her, “the gym is, in some ways, the only consistent social time I have.” Additionally, she noted that “when you exercise, any slump in life is much shallower.”
However, this dedication to exercise can also cause financial challenges. A young woman from Tennessee23, who preferred to remain anonymous to protect his financial privacy, said he spends $600 a month of his $55,000 annual salary on a gym membership, a personal trainer and self-defense classes, putting himself into debt.
“I hope my investment in exercise will help my future self live an easier life,” she said, adding that she has even moved to an area with lower costs of living to be able to afford it.
Fitness spending is not only seen as an investment in physical health, but also in opportunities and connections. For example, in June 2022, Lukas Pakterthen a college student in Los Angeles, posted a video on TikTok explaining why he paid $350 a month for a gym membership, despite having only $500 in his bank account at the time.
He currently lives in Austin and pays $400 a month for a private, invitation-only gym called Kollective. “All of these connections have had a positive effect on my business,” said Pakter, who is co-founder of the sportswear brand SquidHaus.
