With the holidays just around the corner, many Gen Z shoppers say they plan to spend less this year. Researchers predict that spending during the holidays will 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 people planning to spend less overall, but they also plan to buy fewer presents. Rising prices, rising rents, and the general cost of living all have an impact on how far your money will stretch.
Caitlin Mauk, a marketing expert and adjunct professor at the University of Mississippi, says she’s seeing students feeling stretched, but that doesn’t necessarily mean Gen Z is becoming more financially prudent.
“I think to some extent, the cost of living will impact a student’s budget. But at the very least, I think Gen Z people are willing to go into debt and zero out their bank account if it means giving that person the perfect gift or experience,” Mork said.
Oxford Square on December 2nd. Photographed by Jack Kirkland.
Mork also said Gen Z may simply have less money to work for than older generations did at that age.
“Gen Z has less capital and less money than older generations, so that’s causing them to tighten. I think older generations will say they’re tightening more than Gen Z, but I think Gen Z is just spending less overall than older generations,” Mork said.
For some students, holiday traditions still outweigh the pressure to downsize. Reese Juneau, a senior health studies major at Ole Miss, said she expects her holiday spending to be about the same as in previous years, even if prices rise.
“I don’t think my Christmas budget has changed much. I don’t really set a budget when it comes to decorating and buying presents for others,” Juneau said.
Moak and Juneau say that while money may be tighter for Gen Z this year, the pull of the holiday season is so strong that for many young shoppers, finding the “perfect” gift still trumps sticking to a strict budget.
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