Survey: Holiday season spending cuts include...
Different age cohorts are split on how they plan to afford gifts and manage their finances this holiday season.
A new survey from financial services company Bread Financial reveals that to adjust for inflation, nearly one-in-five (19%) Gen Z respondents plan to increase their holiday budget by at least 25%, compared to just 4% of baby boomers. Almost half of baby boomers (43%) are not preparing to save for holiday spending at all, while 37% of Gen Z plan to rely on financing to cover costs.
To afford holiday expenses in particular, dining out and shopping for nonessentials are the most common categories shoppers plan to cut back on, with 43% of consumers overall and nearly half of Millennials (48%) planning to reduce restaurant visits. Gen Z stands out as the generation most likely to cut subscriptions, with 34% reporting they will drop streaming services. Twenty percent of consumers, led by 30% of baby boomers, say they won’t sacrifice any daily expenses to cover holiday costs.
Overall, millennials are the most savings-active group, according to the Bread Financial data, with almost two-thirds (64%) maintaining one to three savings accounts (traditional savings accounts, certificates of deposit, retirement plan accounts, or others). Gen Z is leading in digital adoption, with 37% using apps to track savings, nearly four-times the rate of baby boomers (10%).
[READ MORE: Survey: Small business holiday spending to increase 44%]
“Generational differences in how consumers prepare for big expenses like the holidays reveal deeper truths about how they approach financial planning holistically,” said Jessica Calaway, senior manager of thought leadership & consumer insights at Bread Financial. “Our data shows younger consumers are more comfortable with digital tools and financing to achieve their goals, while older generations lean on traditional savings and debt avoidance. These insights help us design products that meet consumers where they are, while empowering them to reach their long-term savings goals.”
Bread Financial’s survey was conducted online using a questionnaire programmed on Quantilope and fielded via the Rep Data marketplace. A total of 1,600 respondents were sampled from across the U.S.
