For 28-year-old Sephora Grey, necessity isn’t limited to rent, groceries and utilities. It’s convenience.

Grey works around 70 hours a week as an attorney in Washington, DC, and most nights gets home at around 9pm to dinner waiting in her fridge.

She relies on a meal-delivery service and dining out, which costs $800 per month, because it saves her six to eight hours a week — time she can redirect toward billing extra hours at work or resting.

What might look like luxury to some is essential for her — and, increasingly, for many in her generation.

“When I’m thinking about what is a necessity for me, it’s a lot of things … that make my life a lot easier,” Grey says.

Food isn’t the only area where Grey spends for convenience. She considers her Solidcore gym membership, which costs $500 a month, essential.

She got rid of her car last year, which she says isn’t necessary in a city like Washington, DC, opting instead to spend $400 a month on rideshare apps like Uber and Lyft.

While she maintains her apartment herself, professional cleaners come every two weeks, costing $400 a month.

Daily pleasures, such as coffee and chai, run about $150 a month.

For Grey, this spending isn’t about indulgence; it’s about buying back time.

Hours that might otherwise be spent grocery shopping, cooking, or meal prepping are often hours she is working.

Earning a salary in the mid-to-high six figures, Grey frames these costs as functional rather than extravagant — a way to support the pace and pressure of her work.

“What was once a luxury for me has now become a necessity because it keeps me healthy, sane, productive, and functioning,” she says.

The wider trend

Grey’s mindset reflects a broader generational shift.

More than half of Gen Zers and millennials say they view spending on their hobbies and interests as a necessity rather than a luxury, according to a recent study conducted by the Harris Poll on behalf of personal finance firm Intuit Credit Karma.

Just over half of millennials and 45% of Gen Z say they would rather reduce long-term savings than give up certain lifestyle experiences, such as going out to eat, travelling, and gym memberships.

Georgia Lord, head of financial planning at Corbett Road Wealth Management, says young people are intentionally spending on things that support their happiness.

The question she asks is: “Is this spending building something for you, or is it numbing something?” That distinction matters, Lord says, noting that “overconsumption can sometimes be dressed up as self-care.”

She recommends using the 50/30/20 budgeting rule: 50% of income for needs, 30% for wants and 20% for savings.

KEY TAKEAWAYS

Necessities now include some former luxuries. Gen Z and millennials are expanding the definition of essentials beyond housing and food to include things that support mental health, time and quality of life.

Build your financial foundation first. Spending on things like coffee, gym memberships, therapy or dinners with friends isn’t automatically wasteful, Lord says. If your financial foundation is covered, spending on joy and well-being can be healthy.

Small purchases are not always the real problem. A daily coffee isn’t usually what’s blocking financial progress. “A $7 latte is not necessarily the issue,” Lord says. However, unconsidered expenses can add up over time, especially subscriptions or impulse purchases.