The crisp in the air and the endless variations of pumpkin-spiced beverages can only mean one thing: The holidays are just around the corner. While people across the globe are expected to pull out their pocketbooks over the next two months for everything from gifts to decor, the amount of money that they will spend is a little less certain.
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According to auditing firm PwC, consumer behavior may be shifting, in some cases significantly. PwC expects to see a 5% drop in holiday spend overall, driven primarily by young adults. Here is how much each generation is planning to spend this holiday season.
Gen Z
The 2025 Holiday Outlook survey found that Gen Z respondents expected to reduce their holiday spending budget by 23%, the largest decrease among all generations. Young adults in this generation expect to spend $1,357 in 2025, down from $1,752 last year. Factors such as a tough job market, uncertain economic conditions and major life changes may all affect this change in spending.
Gen Z not only plans to spend less during the holidays but also are more conscious about the things they are buying. The study showed that 63% of Gen Z respondents were choosing resale and upcycled items, citing a focus on sustainability and health and wellness.
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Millennials
While Gen Z shoppers intend to spend substantially less this holiday season, millennials are expected to spend around the same amount as in 2024. Millennial-aged respondents said they planned to spend $2,190 this holiday season compared with $2,222 in 2024, representing just a 1% drop.
One thing millennials and other generations are expected to spend more on this year is gift cards. Research from Blackhawk Network found that 46% of Gen Zers and millennials, worried about rising prices, are planning to buy gift cards instead of physical items. Additionally, the PwC survey found that 52% of respondents overall said they planned on giving gift cards to family members, and 47% said they would give them to friends this holiday season.
The findings are consistent with a 2025 forecast from Mastercard, which expects to see “higher than normal” gift card sales this year.
Gen X
Another generation expected to spend slightly more this year during the holiday season is Gen Xers. The PwC 2025 Holiday Outlook found that Gen Xers expect to spend $1,483 in 2025, up slightly from the $1,454 they planned to spend when surveyed before the 2024 season.
A Deloitte survey on holiday spending also projected an increase in Gen X spending for the 2025 holidays. According to the study, Gen X respondents expected to increase their spending by 3% this year compared with 2024.
Baby Boomers
While baby boomers are projected to spend the least of any generation this holiday season, the PwC survey found that the generation expects to spend more than they did last year. Baby boomer respondents said they plan to spend $1,180 for the 2025 holiday season, a 5% increase from the $1,126 they expected to spend last year.
Unlike Gen Zers, who plan to spend 39% of their budget on gifts for themselves, boomer respondents said they plan to spend 67% of their budget on gifts for family members.
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This article originally appeared on GOBankingRates.com: How Much Each Generation Is Planning To Spend This Holiday Season
