Gen Z, millennial spending cutbacks reshape vacation procuring season 

As vacation procuring season begins, youthful Individuals are getting ready to reduce their participation greater than another era.

Gen Z and millennials plan to buy with tighter budgets, shorter present lists, and extra inventive cost-saving measures, whether or not it’s for Black Friday, Small Enterprise Saturday or Cyber Monday, in line with the newest CNBC|SurveyMonkey 2025 Small Enterprise Saturday Survey.

Our survey finds that Gen Z and millennials (24%) depend on budgeting instruments at larger charges than Individuals total and considerably greater than Gen X (12%) and Boomers (10%). Their spending plans replicate a extra intentional, disciplined method.

Gen Z customers specifically are also turning to extra resourceful gift-giving methods. They’re way more more likely to make handmade items as a cost-saving measure (24%), a notable distinction with older customers (13% for each Gen Xers and Boomers). This method blends creativity with practicality and additional underscores that youthful Individuals are feeling the monetary squeeze.

Regardless of these cutbacks, most Individuals (82%) — together with youthful shoppers — nonetheless anticipate to buy the vacations. However they plan to do it otherwise. A majority (82%) say they are going to full most of their vacation procuring outdoors the Thanksgiving weekend, signaling that the standard retail calendar continues to lose affect, particularly amongst youthful patrons.

Small Enterprise Saturday, for instance, has change into a dependable enhance for Most important Avenue, however this yr’s information exhibits a shift in who’s taking part and why. The survey reveals a transparent generational divide in what retains Individuals from supporting small companies on Small Enterprise Saturday. Gen Z and millennials are considerably extra more likely to cite a lack of information, not lack of intent, as the principle purpose they will not participate. Practically half (47%) of Gen Z customers say they will skip the day as a result of they do not know the place native small companies are, with millennials shut behind (38%). 

A few of this consciousness hole could replicate broader generational habits. Gen Z and millennials are likely to rely extra on on-line discovery when deciding the place to buy, and search outcomes usually elevate nationwide retailers first. For Most important Avenue, this creates a transparent mandate: reaching youthful customers will depend on strengthening digital discoverability and making native choices simpler to seek out. And not using a sturdy digital presence, many small companies merely do not seem the place youthful shoppers are wanting.

Worth performs a job, too, however it’s secondary (17% for Gen Z and 18% for millennials). Youthful customers nonetheless level to consciousness way over value, underscoring that their greatest barrier is not willingness or affordability, however visibility. A significant share of youthful shoppers (39% of Gen Z and millennials) say they plan to spend much less this season due to the affect of tariffs, including one other layer of stress to already tight budgets. 

This yr’s information makes one factor clear: younger customers are navigating this vacation season otherwise. Gen Z and millennials are coming into the vacations with tighter budgets, extra intentional spending habits, and much much less consciousness of the place native small companies are.