Survey: Gen Z shoppers aim to curb holiday overspending
Gen Z consumers are working hard to stay on a budget this holiday season.
Most (88%) respondents born between 1997 and 2007 in TD Bank’s 2025 Merry Money survey are considering ways to limit overspending, while 77% are planning to make a holiday budget this year. Half (51%) of Gen Z respondents are planning to budget with the help of Gen AI tools.
Nearly two-thirds (65%) of Gen Z respondents admit that the financial aspect of the holiday season makes them anxious, and six-in-10 (60%) plan to spend less this holiday season due to tariff concerns. By comparison, Gen X (72%) and millennials (71%) are more likely to overspend during the holidays than their Gen Z (60%) counterparts.
A strong majority of Gen Z (90%) and millennial (87%) respondents are planning their holiday purchases around major shopping events like Black Friday and Cyber Monday to maximize deals.
[READ MORE: Survey: Almost half of shoppers will have lists ready for Black Friday, Cyber Monday]
The survey also noted that Gen Z is being cautious with their spending beyond the holiday season. Twenty-four percent of Gen Z consumers surveyed are putting money aside for a major purchase in 2026, while 14% are saving up for major life milestones such as weddings, relocations or new jobs. Twenty-one percent (21%) are planning ahead for travel or upcoming vacations, roughly double the share of Gen X shoppers (11%) doing the same.
“Gen Z has grown up amid global economic uncertainty, and that may help explain why they demonstrate such strong financial awareness,” said Marc Womack, head of U.S. consumer deposit & payment products at TD Bank. “They’re redefining seasonal spending and taking advantage of technologies that help them blend traditional budgeting and saving habits with solutions like credit card rewards optimization apps and AI-enabled tools. This is a group of shoppers who are balancing financial discipline with a bit of holiday indulgence.”
Additional insights from the survey include the following:
- Overall, two-thirds (67%) of shoppers surveyed are planning to set a holiday budget and six-in-10 (59%) expect to spend under $600.
- Nearly eight-in-10 (79%) respondents are actively seeking out coupons, sales and deals to manage costs, underscoring how shoppers are prioritizing smart spending.
- A majority (82%) of consumers in TD Bank’s survey feel confident in managing their holiday expenses. However, over half (52%) are planning to spend less due to tariff concerns.
- Beyond gifts, nearly half (44%) of respondents expect groceries and family meals to be their biggest holiday expense this year.
“Holiday preparation starts well before the first gift is wrapped,” Womack added. “This year we’re seeing that consumers are planning earlier, saving consistently and approaching the season with a greater sense of financial control. From setting money aside throughout the year to paying balances off quickly after the holidays are over, shoppers are proving that good preparation is just as important as smart spending.”
TD Bank’s survey was conducted by Big Village among a sample of 2,521 U.S. adults ages 18+ who celebrate the holidays. The survey was conducted from Oct. 14-21, 2025.
