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Holiday shopping is in full swing, and while spending trends are on target to be on par with last year across the generations, Gen Z and Millennials are feeling more festive, and are on point to spend more this season whether that's on gifts, food or celebrating, according to a new study.
In the study by National Retail Federation and Prosper Insights & Analytics, 46% of those in 18-24 age range indicated that they will be spending more this season – and 39% of those aged 25-34 are anticipating a bigger spend too.
“As Gen Z and Millennials gets older, their purchasing power increases and the rise in disposable income is sure to be seen by retailers,” NRF President and CEO Matthew Shay said.
“This group of consumers has spent time carefully researching gifts for friends, family and themselves, and are ready to begin knocking out their shopping lists,” he said.
Credit and Debit card make the holiday grade
What is the top payment method this holiday season? Credit card and debit cards are trending with consumers, with 40% of people planning on using their credit card while shopping. Another 40% are opting to use their debit cards. This trend is on par with last year's preferences.
Cash is still king for some, with 18% planning on pulling out bills at the register, while 2% will be using checks.
When it comes to mobile wallets and other new payments methods, 36% of people will be using PayPal, while 7% are using Apple Pay and 4% are going with Samsung Pay and Google Wallet. Venmo was the top choice for 3% of consumers.
Spending money and time
What gifts are on people's to-do lists? In the study, 61% of consumers are on track to buy clothing and accessories. And gift cards are still popular, with 59% of people having them on their holiday list.
Other popular gifts include:
- Books, music, movies or video games (44%)
- Toys (41%)
- Food or candy (34%)
- Electronics (29%)
The study also found that 95% of Americans will be hitting the stores to do some holiday shopping, while 80% are going to be celebrating with family and friends. For 63% giving gifts will be part of their holiday celebration, while 50% will be celebrating by preparing a special meal or treats.
Donating to a cause is also in style with 38% expecting to give money to a charity or a cause, while 37% will be donating actual gifts or meals to people in need.
This study was conducted between October 31 and November 7, and the survey was taken by 7,439 consumers.