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IN THIS ARTICLE:
After looking into Gen Z holiday spending trends in 2023, we decided to zoom out this year and bring millennials into the mix — surveying 700 young Americans aged 17-43 on their holiday spending, budgeting, and gift giving.
Is Buy Now, Pay Later (BNPL) becoming a preferred form of payment to afford holiday gifts? Are holiday PR unboxings and influencer hauls actually helping people get gift ideas? Would young Americans consider foregoing their Netflix subscription to avoid holiday debt? Read on to find out.
SEASONS GREETINGS—FROM AMAZON PRIME DAY…
- Just over half (51%) of young Americans are spending a quarter or less of their monthly income on holiday gifts and experiences, with 24% spending up to half. That said, two thirds have noticed smaller spending limits for gifts amongst friends, family and holiday games like White Elephant and Secret Santa (comparing 2020—now).
- 79% are now thinking about gifts earlier in the year in order to shop better sales and save more money. Of the 63% who said they have already utilized major retailer events to buy holiday gifts this year — Amazon Prime was the most shopped sale, followed by 41% already starting to utilize Black Friday deals.
- Given the rising cost of living, 48% feel they may rely more on Buy-Now-Pay-Later (BNPL) options to purchase holiday gifts this year.
THERE’S NO PLACE LIKE HOME FOR THE HOLIDAYS (LITERALLY)
- When it comes to holiday travel and events, over half (56%) are planning to cut back on dining out or holiday parties to stay within budget, with 64% likely to downsize their travel plans due to rising airfare and accommodation costs.
- Half of young Americans would consider picking up a side hustle to cover holiday expenses, with almost a quarter (16%) having already picked up a secondary source of income for this reason. When asked what this side hustle is/would be — DoorDash took the cake (22%), followed by Uber Eats (21%).
- 64% are considering giving up streaming services (like Netflix, Hulu, Spotify) to avoid post-holiday debt, with 72% considering the ‘Buy Nothing’ challenge as a way to cut back on unnecessary spending this season.
‘TIS THE SEASON TO SHOP SMALL
- Almost half of young Americans (48%) feel like they’re more likely to consider second-hand gifts or budget-friendly alternatives this year due to rising costs.
- 53% are also likely to prioritize sustainable and locally-made gifts, even if that means they cost more than other traditional options. To no surprise, Gen Z are more likely to go this eco-friendly and small business route than Millennials (59% versus 51%).
ALL I WANT FOR CHRISTMAS IS DUPES
- When asked about the helpfulness of social content for discovering holiday gift ideas, almost half (47%) said it’s not helpful, with 32% liking shopping hauls.
- For Gen Z, the preference for holiday shopping social content is ‘dupe videos’, whereas for Millennials, it’s ‘PR unboxings’.
- Unsurprisingly, Gen Z is also more likely to consider TikTok Shop and Instagram for holiday shopping than Millennials (44% versus 33%).
Methodology: Our findings are from 700 Americans aged 17 to 43 surveyed in November 2024.
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