This holiday season, Americans might be feeling a tad more cheerful than they have in recent years.
Inflation is finally coming down, and the economy remains robust, despite years of predictions that a recession was around the corner.
When people are happy, they tend to spend more. So, with the holidays upon us, who plans to spend the most — and the least — this month?
Recently, Bank of America surveyed just over 2,000 adults and asked them how much they plan to spend during the holidays. On average, they say they will break out their wallets for $2,100 worth of things that are outside typical obligations and necessities.
However, some generations intend to spend more than others. Here are the responses, by generation, with Bank of America’s definition for each generation:
- Generation Z (born after 1995): $3,300
- Millennials (born between 1978 and 1995): $4,000
- Generation X (born between 1965 and 1977): $1,200
- Baby boomers (born between 1946 and 1964): $800
Men ($2,750) plan to spend far more than women ($1,400).
Despite the improvement in inflation, Americans are still a bit wary about today’s economic conditions. Nearly two-thirds — 59% — say rising prices will motivate them to shop more at discount stores this holiday season.
In addition, holiday expenses are expected to generate feelings of “financial strain” among 62% of respondents. However, that number is down from 67% in 2023.
Respondents say they plan to prioritize spending in the following categories:
- Gifts for family and friends: 78%
- Groceries and hosting: 69%
- Day-to-day necessities: 48%
- Holiday decorations: 35%
- Clothing and festive attire: 29%
- Entertainment and activities (e.g., tickets to shows or events): 23%
- Travel and accommodations: 19%
Nearly half of respondents acknowledge that they often overspend during the holiday, with younger respondents much more likely to admit to such indulgences than older spenders.
For example, 62% of Gen Zers confess to becoming spendthrifts during the holidays. By contrast, just 38% of baby boomers say the same.
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