Most Americans (91%) plan to do some holiday shopping this year, according to an Insurify survey. But like every holiday season, there are financial risks, such as overspending, taking on debt and maxing out credit cards.
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These bad holiday shopping habits also vary by generation. Insurify found that Gen Z leads the way in overspending, while millennials are more likely to rely on credit cards. Here’s how each generation’s worst holiday shopping habits compare, based on Insurify’s data and what can be done to avoid them this season.
Gen Z
- 74% typically spend more money than they budgeted for during the holidays
- 39% have previously taken on debt as a result of past holiday shopping
- 34% expect to take on debt as a result of holiday shopping this year
- 42% have previously maxed out a credit card because of the holidays
Insurify found that Gen Z is the most likely to exceed their holiday budget. While 37% of Americans plan to spend less overall, younger shoppers are more likely to spend more. According to Insurify, 47% of Gen Z shoppers plan to spend more on gifts this year compared to last.
One way to avoid overspending is the cash stuffing method, a budgeting trend made popular on TikTok where people divide physical cash into labeled envelopes for specific expenses like gifts, groceries, entertainment and holiday spending. According to Experian, using cash requires an intentional approach to spending and helps keep it under control.
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Millennials
- 57% typically spend more money than they budgeted for during the holidays
- 42% have previously taken on debt as a result of past holiday shopping
- 41% expect to take on debt as a result of holiday shopping this year
- 37% have previously maxed out a credit card because of the holidays
Millennials also have a problem with overspending, but take the lead on being the most likely to take on new debt this year.
In the third quarter of 2025, the average credit card rate from the CardRatings survey was 24.22%, making any new balance an expensive one to carry into the new year. To avoid adding more to your credit card debt, experts told CBS News to limit spending to cash or debit cards and set a predetermined amount toward holiday purchases.
Gen X
- 54% typically spend more money than they budgeted for during the holidays
- 42% have previously taken on debt as a result of past holiday shopping
- 32% expect to take on debt as a result of holiday shopping this year
- 32% have previously maxed out a credit card because of the holidays
Gen X also has a big problem when it comes to taking on debt during the holidays, but they’re more likely to overspend and take on debt consistently. Generation X is also made up of the highest debt holders, with an average balance of $9,557, Forbes reported.
Paying down existing balances before the holidays can help free up credit and reduce interest costs. Investor.gov, a U.S. government investor education site, recommends that if you carry balances on multiple credit cards, you should focus on paying down the card that charges the highest rate while still paying the minimum on your other cards.
Baby Boomers
- 44% typically spend more money than they budgeted for during the holidays
- 26% have previously taken on debt as a result of past holiday shopping
- 16% expect to take on debt as a result of holiday shopping this year
- 10% have previously maxed out a credit card because of the holidays
Baby boomers appear to be the most financially disciplined, but still struggle with underestimating their budgets. Nearly half still admit to spending more than planned, even if they’re less likely to rely on credit cards or take on new debt.
The American Bankers Association (ABA) suggested writing down all expected holiday expenses, like gifts, decor, food, etcerera, checking it twice and reviewing receipts and spending to give yourself a “reality check” on how much you can afford.
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This article originally appeared on GOBankingRates.com: 4 Worst Holiday Shopping Habits of Each Generation
