With the holidays right around the corner, many Gen Z shoppers say they are planning to spend less this year. Researchers expect their holiday spending to drop by more than 20% compared to last year.
A recent survey of U.S. holiday shoppers ages 18 to 29 found that not only are young adults planning to spend less overall, they are also planning to buy fewer gifts. Rising prices, higher rent and the general cost of living are all playing a role in how far their dollars stretch.
University of Mississippi marketing specialist and adjunct professor Caitlin Moak says she sees students feeling the squeeze, but that does not necessarily mean Gen Z is becoming more financially cautious.
“I think to a certain extent, the cost of living does play into a student’s budget. But I think that, at least, I see Gen Z people more willing to go into debt and hit zeros in their bank account if it means getting that person a perfect gift or experience,” Moak said.
Moak also says Gen Z may simply have less money to work with than older generations did at their age.
“Those in Gen Z have less capital and money than the older generation, so it’s causing them to tighten up. I think older generations will verbally say that they are tightening up more than Gen Z, but I think that Gen Z is just spending less in general than older generations,” Moak said.
For some students, holiday tradition still outweighs the pressure to scale back. Ole Miss senior allied health studies major Reese Juneau says that even with prices rising, she expects her holiday spending to look about the same as in previous years.
“I don’t think my holiday budgets have changed. I don’t really put myself on a budget when I’m getting holiday decorations and presents for other people,” Juneau said.
Both Moak and Juneau say that while money may be tighter for Gen Z this year, the pull of the holiday season is strong, and for many young shoppers, finding the “perfect” gift still wins out over sticking to a strict budget.
