Economic anxiety is driving Gen Z down memory lane — trips to the malls, analog tech and vintage brands. It may signal deeper fears about the economy

Even Gen X icons like Snoop Dogg and Drew Barrymore have leaned into the renaissance, posting retrospective montages set to the song “Iris” by the Goo Goo Dolls, and perhaps reminiscing about a lighter and more carefree era (1, 2).

FX’s Love Story, a dramatized portrait of John F. Kennedy Jr. and Carolyn Bessette-Kennedy's lives, revisits a pre-digital romance built on spontaneity and ease (3). For a growing number of young adults, nostalgia is no longer just aesthetic. It is shaping how they spend, save and make sense of an economy that often feels out of reach.

The 1990s were marked by strong economic expansion, with roughly 24 million jobs created in the U.S. and GDP growing at an average annual rate of about 3.3% (4, 5). Against today’s backdrop of rising living costs and uncertainty around long-term wealth building, the decade has become aspirational not only culturally, but also economically.

“Nostalgia is absolutely shaping how Gen Z spends,” Taylor Price, a 25-year-old personal finance creator and founder of Priceless Tay, told Moneywise. “The future feels expensive, so it’s psychologically cheaper to escape into eras that feel simpler, more stable, and less chaotic, even if we never actually lived them and only watched them on TV.”

Minimalism as a money mindset

Price sees the resurgence of ’90s minimalism as a response to economic pressure, one that encourages young adults to focus on the parts of life they can still control. When major milestones such as homeownership or long-term wealth building feel out of reach, she says many respond by narrowing their spending to smaller choices tied to their identity.

Recent data suggests that sentiment is widespread. BMO’s Real Financial Progress Index housing report found that 69% of Gen Z respondents said owning a home remains a significant life goal, yet nearly half believe it may be unattainable in their lifetime (6).

Price said that nostalgia can function as both an identity and a budgeting strategy. Beauty routines are becoming more low-maintenance, with nail colors trending toward neutral shades and sticking to natural hair dye hues.

“It looks aspirational, but functionally it’s a way to stretch appointments, wear pieces on repeat, and still feel like you’re participating in the aesthetic conversation without being 'with the times,” Taylor said.

Timothy D. Malefyt, a professor of marketing at the Gabelli School of Business at Fordham University, sees the renewed fascination as part of a broader cultural response to economic constraint. He points to a “mythologized” memory of the decade tied to pre-social media narratives that can feel appealing amid homeownership, elevated mortgage rates, persistent inflation and the rise of gig work.

“Nostalgia is always high under these conditions since it offers a sense of continuity when the future feels uncertain and offers a stable symbolic order when economic structures feel unstable,” he tells Moneywise. “So anthropologically speaking, it is not just cyclical fashion recycling, but I believe it is structurally driven.”

Buying a feeling

While the 1990s were far from utopia, their comparatively low-tech pace is part of what makes the decade so appealing.

A 2023 Harris Poll survey found that 67% of Gen Z adults in the U.S. said they wished they could return to a time before everyone was online (7).

For some young consumers, that feeling is translating into physical purchases. Elle Ibarra, an artist and content creator living in the Bay Area, has built a following by recreating early-2000s aesthetics online. Despite working in a digital-first career, she admits she seeks out offline inspiration, buying items like a Nintendo Game Boy Advance or a portable DVD player to step away from endless scrolling.

“When the state of the world feels so unpredictable, it can be overwhelming,” the 35-year-old said. “So spending money on nostalgic things like VHS tapes, DVDs, video games and CDs gives me a small escape from the constant digital noise and everyday stress.”

Price shared a similar impulse. While travelling in Japan, she purchased a compact Nikon digital camera, drawn not only to its aesthetic but to the experience it offered.

“I basically bought myself a portal back to a time when capturing memories felt lighter and less performative, which is exactly what so many of us are craving under the pressure of today’s economy,” she said.

Both Price and Professor Malefyt see this as a modern version of the “lipstick effect.” Originally observed during recessions, the phenomenon describes how consumers cut back on major purchases like travel, vehicles or luxury goods while continuing to spend on smaller indulgences (9).

The skinny on reliving the ‘90s

From viral nostalgia trends to renewed fascination with ’90s-era love stories, the desire to reconnect with an offline past is shaping how younger consumers spend.