Archive · 1 Dec 2025
Gen Z Tightens Holiday Spending Amid Financial Pressures
Gen Z, which includes teens to people in their late 20s, is spending less money on gifts and other holiday expenses this year.
Many in this group are facing higher costs for housing, student loans, and groceries, which is making it harder for them to spend as much as they used to.
Some are even making homemade gifts or buying secondhand items to save money.
Retailers are noticing this change and are trying to attract younger shoppers by offering more affordable products.
Overall, while some shoppers are still spending, those with lower incomes and younger shoppers are feeling the pinch the most.
Gen Z is cutting holiday spending by an average of 34%, more than any other age group.
Rising costs of housing, student loans, and groceries are contributing to financial strain.
Retailers like Best Buy and e.l.f. Beauty are adapting by offering more affordable products.
Gen Z shoppers are turning to homemade gifts and secondhand items to save money.
Black Friday sales hit $18 billion, up 3% from last year, but shoppers bought 2% fewer items.
- Who
- Generation Z (teens to late-20-somethings)
- What
- Cutting holiday spending by 34% due to financial pressures
- When
- Year-end holiday season
- Where
- United States
- Why
- Rising costs of housing, student loans, groceries, and higher unemployment rates among recent college graduates
- Generation Z
- Teens to late-20-somethings
- Expected Spending Cut
- 34%
- Items Purchased
- 2% fewer
- Average Price Increase
- 7%
- Gen Z's Share of Retail Spending
- 8% (expected to grow to 20% in 5 years)
- Unemployment Rate for Recent Graduates
- 6.8% (highest in a decade outside pandemic)