One generation will drastically cut back on holiday spending this year.
Holiday Spending Expected To Drop This Year
Holiday spending is expected to fall by 5% this year while Gen Z plans to cut back on holiday spending by 23%, according to a Holiday Outlook survey.
A quarter of Gen Zers say their financial situation is worse than last year as more Americans will spend deliberately and prioritize value.
Inflation, job insecurity and new financial responsibilities are the biggest reasons for the drop in holiday spending. Gen Zers also say that retailers are “missing the mark” with them.
Millennials and Gen Xers will keep their budgets nearly the same as last year while Baby Boomers are expected to spend 5% more than they did in 2024.