Generation Z Cutting Healthcare Spending Amid Economic Uncertainty

The self-care obsessed generation is forced to forgo mental health services due to increasing financial pressure

SAN FRANCISCO, May 21, 2025 /PRNewswire/ -- Socialtrait, AI-powered consumer insights platform, published a report revealing nearly 60% of Gen Z plan to cut healthcare spending citing rising prices and economic uncertainty. Mental health services, which have been a staple of self-care for younger generations, are reported as the first to be reduced or eliminated.

"Financial pressures are overriding long-term wellness considerations for Gen Z in the U.S.," said Vivek Kumar, CEO at Socialtrait. "This study's findings point to critical gaps in healthcare affordability and access, particularly mental health support, which younger Americans increasingly view as negotiable as the economic situation becomes more unpredictable."

The survey highlights broader economic implications, as younger consumers' healthcare cutbacks today could lead to escalated costs and health complications tomorrow. This data is a signal for healthcare providers, insurers, employers and policymakers to rethink healthcare access and affordability, particularly mental health services, for younger generations.

Participants highlighted financial difficulties caused by high copays significantly impacting their healthcare affordability.

Socialtrait conducted the survey using an AI-driven simulated community representative of the general United States population. Each AI persona has their own unique profile and socio-economic characteristics and can respond to questions, provide commentary or interact with other participants.

"We build AI agents to act like lenses, allowing us to zoom in on the emotional and cognitive patterns that often go unnoticed," said Kumar. "It's not just about replicating behavior. It's about understanding the why behind it."

About Socialtrait 

Socialtrait leverages AI-driven communities to deliver precise, actionable consumer insights. By facilitating authentic interactions and deeper understanding of consumer behaviors, Socialtrait helps brands, marketers and policymakers respond effectively to evolving market dynamics.

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SOURCE Socialtrait