Gen Z Is Choosing ‘Memory Investing’ Over More Traditional Purchases. Here’s What That Means.

When you think about “investing,” the first things that probably come to mind are stocks, savings accounts or maybe even real estate.

But there’s a different financial mindset gaining traction, especially among Gen Zers, that focuses less on material assets and more on moments you’ll treasure for years to come. Behold: “memory investing.”

So what exactly does this approach entail and what should consumers know about it? Below, experts break down the benefits, downsides and best practices for implementing memory investing in your everyday life.

“Memory investing is about spending money on experiences that stick with you, like trips or family adventures, instead of always focusing on material things,” said Julie Guntrip, head of financial wellness at Jenius Bank. “It’s choosing to put your money toward moments that shape your life story and experiences you’ll remember years later, rather than material possessions that may lose their appeal over time.”

She views it as an investment in your happiness and relationships, rather than just your bank account and financial future.

The term appeared in Cash App’s “Sound Investments” report, which was released in May. The mobile payment company examined how American Gen Zers approach their finances and found a growing trend of prioritizing in-person experiences that create lasting memories, like concerts, vacations and quality time with friends.

“There’s no one-size-fits-all approach to financial responsibility,” a Cash App spokesperson told HuffPost. “While older generations may have equated financial responsibility solely with saving for long-term goals like home ownership, Gen Z is taking a more holistic view, which balances future planning with living meaningfully in the present. This includes spending in alignment with their values through memorable experiences such as concerts.”

The concept of memory investing is inspiring to Ben Markley, a personal finance educator and host of the budgeting program YNAB’s YouTube series “Sketchy Advice.”

“It reminds us that our money is a tool to create the life we want and using it to create meaningful experiences is one of the best returns you can get with your money,” he said. “When we talk about money and work, we forget that our money is really just us. You trade your time, energy, and attention to get money and the reason you do that is so you can turn that money into something that adds value to your life ― whether that’s a milkshake or a trip to Yellowstone or replacing your refrigerator.”

“Experiences, while they may cost money, are often truly priceless,” said Julie Beckham, aka “Ms. Money,” the assistant vice president and financial education development and strategy officer at Rockland Trust. “In a world characterized by overconsumption and an abundance of ‘stuff,’ prioritizing experiences can even be more beneficial for the environment.”

With memory investing, the return you get is the joy of lifelong memories that you can cherish forever.

“The benefits of memory investing are that experiences often bring more lasting happiness than physical things, and in some cases, may strengthen relationships and build a sense of purpose,” Guntrip said.

Markley also pointed to the sense of purpose as an advantage to this approach.

“Memory investing elevates the meaning of your work and your money,” he said. “Rather than looking at your work as a means to an end, memory investing helps you find a new sense of purpose in your work by thinking about how you can turn your income into meaningful moments that will forge lasting memories.”

It’s also a great way to practice being intentional with your money.

“Choosing to spend on experiences that create lasting memories like travel, celebrations or time with loved ones can be so fulfilling,” noted Bola Sokunbi, the founder of Clever Girl Finance. “It’s about aligning your spending with your values.”

“The downside is that, if it’s not balanced with financial responsibility, memory investing could turn into overspending,” Guntrip said. “A meaningful trip is harder to enjoy if it comes with long-term credit card debt.”

It’s OK to prioritize a major life moment like splashing out to attend your favorite musical artist’s concert. But mindfulness is essential to avoid throwing your finances offtrack.

“It can turn into impulse spending if there’s no plan,” Sokunbi noted.

Beware the pitfalls of overly high expectations too.

“A downside of memory investing is you may start to sensationalize your life and feel pressure to constantly do something exciting and expensive,” Markley said. “Truth be told, you don’t need exciting moments at every turn. If you talk to people about their favorite memories, so many of them are little everyday moments.”

Pointing to the social pressure aspect, Beckham believes the term “memory investing” sounds like an attempt to financially justify paying for experiences.

“You shouldn’t have to financially justify anything important to you to anyone, unless you share a financial life with them,” she said. “If making memories is a financial priority, then budget for experiences without apology.”

“First of all, create some clarity on what memories you want to invest in,” Guntrip advised. “Build a vision board, save ideas online or simply make a list. If you have a partner or a family, it’s probably a good idea to decide on and prioritize the memories together.”

She then recommended thinking of memory investing as part of your overall financial plan, rather than separate from it. Putting some of your discretionary income into a “memory budget” can help you enjoy those life moments without guilt or fear of getting offtrack with your financial goals.

“Build it into your budget,” Sokunbi urged. “Set aside money regularly for the experiences that matter to you, whether it’s a girls trip, a family holiday, or a solo getaway.”

Beckham recommended naming bank accounts after specific memory investing goals.

“Want to make memories in Hawaii? Then name an account just for that and send automatic deposits with every paycheck,” she said. “Worried about adding one more thing to your to-do list? Automate the process! Save up so you can pay all or most of your goal expenses with money you already have on hand. If you set up regular automatic transfers from your checking account through electronic banking, you can easily keep your goal savings on track to meet your goal.”

The experts who spoke to HuffPost also emphasized that you don’t need to spend a ton to create meaningful memories.

“Not all memories are tropical vacations,” Markley said. “It could be something as simple as trying the new coffee shop in your town ― the important part is getting in the habit of earmarking money for new experiences so that life doesn’t pass you by.”

He believes memory investing and mindfulness go hand in hand.

“You can spend money on all of the unique experiences in the world,” Markley said. “But if you can cultivate a greater sense of presence in your day-to-day life, maybe by journaling, you’ll find that more memories start to bloom simply because you are paying attention.”