Gens Y and Z expected to outdo other demos in holiday spending

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Nearly three-quarters of consumers expect to spend the same or more this holiday season as they did in 2017, however, younger shoppers will likely outspend older generations.

Nearly half (43 percent) of adults age 18–24 and 38 percent of those age 25–34 plan to spend more than they did last year, according to a survey of 7,516 consumers conducted by 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,” Phil Rist, executive vice president of strategy at Prosper, said in a press release. “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 total $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. Debit cards run a close second, at 39 percent. Only 17 percent of consumers plan to pay with cash, and 2 percent will use checks, the release said.

Additionally, 44  percent of consumers expect to pay via mobile wallet, including: PayPal (35 percent); Apple Pay (8 percent); Samsung Pay and Google Wallet (tied at 5 percent); and Venmo (4 percent).

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