‘I don’t spend on going out – I’m saving thousands’

They are derided as spendthrifts, incapable of saving and content with frittering their wages away on trendy food and fast fashion.

But members of Generation Z, roughly those born between 1996 and 2010, are confounding their critics and turning to “no spend” challenges to cope with the cost of living crisis.

TikTok is awash with young people sharing their top money-saving ideas and tips for reining in spending.

The rules for a no spend month essentially involve significantly reducing outgoings and waste, and appreciating the things you already have.

Brian Byrnes, head of personal finance at Moneybox, an app, said: “In the past 12 months, we’ve seen customers are saving and investing more than ever – in most cases because they are prioritising their financial goals over discretionary spending.”

Social media manager Matilda Relefors, 28, recently moved out of London and relocated to Gloucestershire and decided to give herself a financial reset.

“I realised I had large amounts of food sitting in my cupboards and freezer and yet I was still buying new food,” she says. “I thought, surely I can just eat this food and stay in for a month without socialising, and I could save so much money.”

Thirty days later, Relefors not only saved £1,550, she had also gained 35,000 followers on social media as a result of her documenting her thrift.

Relefors is fairly strict. She does a big food shop at the start of the month, only allowing herself to spend money on essentials, such as bills and rent – or on her dog. Transport, going out, new clothes and make-up are a no-go.

First, she eats up fresh ingredients, before moving on to dried or frozen goods. “A lot of things last so much longer, weeks longer, than the use-by date,” she says. “Every month I make a huge batch of bolognese sauce and divide it up into freezer bags. Whenever I want some bolognese I can make new pasta and just defrost and heat up the bag of sauce.”

Of course, some months are easier than others. “I’ve done January and November this year because no one wants to go out during those months anyway. During the summer it would be impossible – you can’t stop me from travelling, going to restaurants and sipping cocktails on rooftop bars all summer long.” Matilda also acknowledges that it is easier to stick to her plan now that she lives in the countryside: “In London, I feel like you spend £100 every time you leave the house. If you’re living in a city, I would maximise home working and minimise socialising.”

Ultimately, this challenge has made Relefors more mindful of her spending habits: “It’s been a real eye-opener in terms of how long some food actually lasts and how long I can go without spending a penny.”

Christina Mychas, a 36-year-old content creator, author and pharmacist from Toronto, takes a more flexible approach to the challenge.

Rather than banning herself from socialising, Mychas rules out luxuries and seeks to lower her levels of consumption overall.

She has been taking part in the challenge since January 2019 and was motivated to do so after accumulating $120,000 (£95,500) worth of student loan debt. “I was also a self-proclaimed shopaholic – a chronic overspender,” she says. While at first Mychas saw the challenge as a way to “short circuit” her spending, she now views them as a way of “resetting your dopamine system, so that you learn to find pleasure in other things again”.

Christina also believes it’s important not to look at these financial resets as a form of punishment. Rather than focusing on the fact that you can’t buy or do certain things, she recommends people “focus on what you have, on all the things you’re getting back instead of all the things that you’re potentially denying yourself of ”.

For those considering the challenge themselves, accountant Chris Demetriou recommends using an app like Emma, which links up to your bank account and categorises your spending, alerting you if you’re nearing the end of your budget.

Nicola Bannister, financial support director at TSB, says customers should also research the freebies, deals and discounts on offer at different banks. “Checking what offers are available to you, whether it’s retailers, food delivery apps or even car insurance, can help you claw back some pennies,” she says.

Financial education instructor Anna Brading, meanwhile, suggests that you have a reason for doing it, to help you stay motivated.

“Don’t just save for the sake of saving,” she says. “Instead, get clear on exactly what that money is for. It is far more motivating when you know what hitting that savings goal will achieve for you. Also, it will help you break down the journey to hit your goals, so you can get the satisfaction of ticking off each milestone and seeing the amount grow.”

While saving and being frugal isn’t a new concept, it’s certainly something younger generations are being forced to confront. Millennials and Generation Z have become associated with excess, but there are a growing number of young people taking their personal finances seriously. They want to shop responsibly. They want to move away from endless choices and buying for the sake of it.

They are also incredibly conscious of the impact consumerism has on the planet and they are taking active steps to reduce their carbon footprint and waste. Some might call them “woke”, but taking responsibility for your finances is something we can all agree can only be a good thing.