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Spending is on Millennials’ to-do list this holiday season, according to Discover’s annual holiday survey. But while they're spending a little more at a faster rate, they are not alone, with all generations expecting to spend more causing an upswing in holiday cheer.
Consumers expect to spend 27% more this year over last. How much will they be spending in dollars and cents? On average they will be shelling out $927 on everything from stocking stuffers to electronics and jewelry, up from $730 they spent last year.
Generational spending and tech divides
While everyone is expecting to spend more, Millennials are planning on spending a little extra and will be parting with it faster than older generations. Forty-three percent of younger shoppers, falling in the 18-34 age range, are expecting to pull out the spending stops, while just 22% of those 35 and older are gearing up to do the same thing. Millennials are slated to spend $941, and others will be spending $926.
While you may expect to see the older generation budgeting more, it’s not the case this year with 66% of Millennials making a budget, and checking it twice, while just 52% of their older counterparts doing the same.
There is also bit of a clash when it comes to spending habits, with Millennials tending to shop with their mobile devices more frequently than their older folks. Nearly three-quarters (73%) of Millennials poised to use their smartphone or tablet to do their shopping, while just a third (32%) of non-Millennials are planning to break out their technology. This trend stays in play when asked whether they will be shopping online or in real time. Here too Millennials outpacing GenX and Baby Boomers.
Credit cards or cash?
How will people be paying for holiday gifts? Credit cards are trending this holiday season, with 41% of consumers reporting that they will use their credit cards for holiday shopping, while 27% will be pulling out their debit card, and 18% will be using cash.
In the survey the number of people using their credit cards is up 18% when compared with five years ago, when just 23% were using credit cards on their holiday shopping excursions.
Discover’s new annual holiday survey, was conducted between October 30 and November 2 with 1,508 consumers.