Yahoo Lifestyle Gen Z Leads Holiday Spending Surge, Doubling Down on Meaningful Gifting Despite Debt Anxiety
New consumer research from The Harris Poll shows that U.S. shoppers are looking to spend more on holiday gifts than ever before. And Generation Z is leading the charge.
The survey was conducted in early November and included 2,095 U.S. adults.
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Researchers at the firm said despite harboring financial anxiety, Gen Z “is leading holiday spending with projected purchases of $1,638 — more than double the Boomer average of $681,” the report’s authors said, adding that the expected expenditures “comes with a psychological cost, as a significant portion of Gen Z reports holiday-related debt anxiety (60 percent).”
Libby Rodney, chief strategy officer and futurist at The Harris Poll, said, “What we’re witnessing is Gen Z’s determination to create meaningful holiday experiences, despite financial pressures. Their willingness to spend more than other generations reflects both their emotional investment in gift-giving and the financial strain it can create.”
The results echo other recent surveys about Gen Z.
Other insights gleaned from the survey showed that Gen Z and Millennials are turning to technology such as generative AI to make tasks such as shopping more stress-free.
“Younger generations are embracing AI to navigate holiday tasks, from planning meals to creating personalized budgets,” the report’s authors said. “Nearly 69 percent of Gen Z and Millennials trust AI to help them find better deals, and 57 percent would even use it to craft holiday cards.”
However, The Harris Poll found that 81 percent of respondents said they feel holiday cards need to be personally signed. “Despite this, AI remains a practical tool for 56 percent of Americans who wish it could find deals on gifts this season,” the report stated.
Rodney said the adoption of AI in holiday shopping signals a significant shift in consumer behavior. “With 69 percent of young consumers embracing AI for deal-finding, we’re seeing technology being integrated into holiday traditions in ways that enhance rather than replace the human experience,” Rodney said.
The Harris Poll also revealed the importance of physical stores to the shopping experience — especially among younger consumers. The survey showed that 68 percent of Gen Z and Millennials consider holiday mall shopping a cherished tradition. “This holiday season, 40 percent are specifically choosing malls as their gift-hunting destination, with 65 percent reporting that mall shopping actually reduces their holiday-related stress and saves time,” the report noted. “The human element plays a crucial role, as 73 percent of young shoppers say store staff interactions enhance their shopping experience.”
For Millennials, the love of malls taps into a deep sentiment. The poll showed that 84 percent of Millennials embrace “the festive atmosphere and nostalgic charm of these retail spaces.”
“What’s particularly striking about our findings is that 65 percent of young shoppers find mall shopping reduces their holiday stress,” Rodney said. “This suggests that despite their digital nativity, Gen Z and Millennials crave the structured, experiential nature of physical retail spaces.”
Results from a recent consumer survey conducted by Placer.ai and WWD underscore the importance of physical stores today. That survey found that 79 percent of respondents said they were more likely to engage with a brand after visiting a physical store, while 70 percent said they usually have seen the product they’re shopping for online prior to going to the store. And 67 percent of shoppers polled said they’re more likely to purchase a product online, after trying it on or seeing it in a physical store.
In other findings culled from The Harris Poll, shoppers were asked to rank their top holiday faux pas. Number one was “asking for money for online subscriptions.” Coming in second was “gift hauls” and third was “arriving late to a holiday gathering.” In fourth place was “asking social media what to buy for people for the holidays,” which was followed by “only using social media sites to buy holiday gifts.”
The report’s authors noted that Generation X and Baby Boomers were “more likely to frown upon these practices compared to Gen Z and Millennials, who tend to be more forgiving about holiday behaviors seen as non-traditional.”
“The generational divide in holiday shopping etiquette reflects broader cultural changes,” Rodney said. “Young consumers are rewriting traditional rules, creating new customs that blend digital convenience with meaningful gift-giving.”
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