A cost-of-living crisis is hardly new territory for Millennial and Gen Z Americans as a new cloud of uncertainty hangs over the state of personal finances, but consumer behaviors continue to shift. According to a new consumer survey report from Credit Karma, many young consumers may even be embracing a “life goes on” mentality when it comes to spending as they redefine what they are and are not willing to live without. Effectively, many “nonessentials” have become the “new necessities.”

Aiming to better understand the sentiments of young American consumers today, Credit Karma’s survey, conducted by The Harris Poll, polled more than 2,000 U.S. adults ages 18 and older from April 7 to 9. The survey asked respondents about how they are planning to tackle the cost-of-living crisis, specifically how it will impact spending.

Key findings of the survey include plans to cut back. Seventy-four percent of Gen Z said that if their financial situation continues to worsen, they will “strongly consider” cutting back on nonessential spending. This sentiment was shared by 82 percent of Millennials, 86 percent of Gen X and 87 percent of Baby Boomers.

However, 87 percent of Gen Z and 84 percent of Millennials told the company that they consider certain nonessential items and services to be “necessities.” In the report, “necessities” were defined as “things that they’re willing to spend money on, no matter the state of their finances.”

Fifty-six percent of Gen Z and 59 percent of Millennials said spending on hobbies and interests is a necessity, not a luxury. And nearly half of young consumers (51 percent of Millennials and 45 percent of Gen Z) said they would rather reduce long-term savings than give up certain lifestyle experiences including going out to eat, travel and fitness memberships.

“Generally speaking, heightened emotions can drive us to spend money, whether it’s as a distraction, to have something to look forward to, or a way to spark joy during stressful times,” said Courtney Alev, Credit Karma’s consumer financial advocate. “We’ve seen this come up before in our data just over two years ago, when 39 percent of Americans said they identify as emotional spenders, jumping to 58 percent of Gen Z and 52 percent of Millennials.”

Alev added that it’s not entirely surprising that young people are choosing to find comfort in spending on things that they enjoy amid economic uncertainty. “The cost of living has been persistently high for a few years now, and it’s possible younger generations have accepted this as their new reality and have adjusted their budgets accordingly.”

The top nonessential items and services that Americans consider to be necessities are streaming services like Netflix and Hulu. This sentiment was shared by 36 percent of Gen Z, 37 percent of Millennials, 37 percent of Gen X and 29 percent of Baby Boomers.

Meanwhile, the top fashion- and beauty-related nonessential items and services that Americans consider to be necessities are skin care and beauty products (27 percent of Gen Z and 26 percent of Millennials), new clothes (23 percent of Gen Z and 19 percent of Millennials) and skin care and beauty treatments like manicures, facials or hair appointments (20 percent of Gen Z and Millennials).

When asked what is influencing them to take on this philosophy when it comes to spending, 60 percent of Millennials and 53 percent of Gen Z who consider some nonessential items and services to be necessities, cited social media. At the same time, the authors of the report noted that many Gen Z respondents may feel more comfortable given they have some form of a financial safety net, like parents who support them.