Holiday Spending Dwindles Gen Z and Millennials Tighten Belts

The Fiscal Force Awakens A Generational Spending Shift

As the holiday season approaches I sense a disturbance in the Force a tightening of the collective wallet. Younger Americans those known as Gen Z and millennials are preparing to curtail their spending more than any other generation. This news reported by CNBC|SurveyMonkey's 2025 Small Business Saturday Survey suggests a shift in the retail landscape a potential dark side for those who rely on festive spending.

Budgeting Tools Rise The Empire Strikes Back Against Debt

The survey data reveals that these younger generations particularly Gen Z and millennials are embracing budgeting tools with the fervor of a Jedi Knight wielding a lightsaber. A striking 24% rely on these tools significantly more than their Gen X (12%) and Boomer (10%) counterparts. Their spending plans reflect a calculated disciplined approach a stark contrast to the impulsive tendencies I often witness in my subordinates. This strategic frugality could be a symptom of a larger economic unease or perhaps simply a sign of evolving consumer habits. The US is building a critical minerals trade block to challenge China's Grip and such events can also affect market prices. To read more about the current economy check out Panem's Playbook US Builds Critical Minerals Trade Bloc to Challenge China's Grip.

Handmade Gifts A New Hope for Saving Credits

Gen Z shoppers in particular are turning to resourceful gift giving strategies crafting handmade gifts as a cost saving measure. A significant 24% are embracing this approach a notable contrast with the older generations (13% for both Gen Xers and Boomers). This blend of creativity and practicality underscores the financial pressures these younger Americans face. I find their resourcefulness… impressive. Most impressive.

The Retail Calendar's Demise A Phantom Menace for Traditional Sales

Despite these cutbacks most Americans (82%) including younger consumers still plan to participate in the holiday shopping frenzy. However they intend to do it differently completing the majority of their shopping outside the traditional Thanksgiving weekend. This signals a continued decline in the influence of the traditional retail calendar a development that should concern those who cling to outdated strategies. The times they are changing as the ancient Earthlings would say.

Small Business Saturday The Awareness Gap

Small Business Saturday once a beacon of hope for Main Street now faces a generational divide. The survey reveals that Gen Z and millennials are significantly more likely to cite a lack of awareness not lack of intent as the main reason for skipping the day. Nearly half (47%) of Gen Z shoppers claim ignorance of local small businesses with millennials close behind (38%). This lack of awareness may reflect broader generational habits a reliance on online discovery that often elevates national retailers first.

Digital Visibility The Empire's New Battleground

For Main Street this creates a clear mandate strengthen digital discoverability and make local options easier to find. Without a strong digital presence many small businesses simply don't appear where younger consumers are looking. Price plays a role but it is secondary (17% for Gen Z and 18% for millennials). Younger shoppers still point to awareness far more than cost underscoring that their biggest barrier isn't willingness or affordability but visibility. A meaningful share of younger consumers (39% of Gen Z and millennials) say they plan to spend less this season because of the impact of tariffs adding another layer of pressure to already tight budgets. This year's data makes one thing clear young shoppers are navigating this holiday season differently. Gen Z and millennials are entering the holidays with tighter budgets more intentional spending habits and far less awareness of where local small businesses are. Perhaps it is time for the Galactic Empire to invest in local PR and make sure we are seen.