News

Gen Z, millennials will spend the most this holiday season

November 28, 2018

While a good majority — 77 percent, —of consumers expect to spend the same or more this holiday season, younger shoppers will likely be outspending the older generations.

Nearly half — 43 percent —of adults ages 18 to 24, and 38 percent of those 25 to 34 years old, plan to spend more than last year, according to a survey from the National Retail Federation and Prosper Insights & Analytics.

"Americans continue to engage in holiday traditions like spending time with family and friends, exchanging gifts and cooking a special meal," Prosper Executive Vice President of Strategy Phil Rist said in a release on the survey results.

"But today those traditions include going online to research products and compare prices to make informed purchasing decisions."

Spending on gift cards is expected to reach $29.9 billion, up from last year's estimated $27.6 billion, with shoppers buying an average of four cards worth approximately $49 each.

Credit cards continue to be the most popular form of payment, used by 42 percent of shoppers, with debit cards a close second, used by 39 percent. Just 17 percent of consumers plan to pay with cash and 2 percent will use checks.

Forty-four percent of consumers expect to use mobile payment: PayPal (35 percent), Apple Pay (8 percent), Samsung Pay and Google Wallet (tied at 5 percent) and Venmo (4 percent).

The survey polled 7,516 consumers.