Gen Z Shoppers Top the List of Savviest Holiday Spenders

Executive Summary

• TD Bank’s 2025 “Merry Money” survey finds Generation Z is the most financially disciplined holiday shoppers, with 88% actively limiting overspending and 51% using generative AI for budgeting.
• Across all age groups, 67% plan to set a holiday budget and 59% expect to spend under $600, indicating cautious consumer sentiment ahead of the season.
• The survey highlights a strong shift toward experiential gifting (61% of Gen Z) and increased use of digital tools such as AI‑enabled budgeting apps and credit‑card rewards optimization.

Key Details

• Survey sample: 2,521 U.S. adults (ages 18+) who celebrate the holidays; fielded Oct 14‑21, 2025 by Big Village.
• Gen Z (born 1997‑2007):
• 88% taking steps to limit seasonal overspending.
• 77% planning a holiday budget; 51% will use generative AI for budgeting.
• 65% feel anxious about holiday finances; 60% plan to spend less due to tariff concerns.
• 90% intend to time purchases around major sales events (Black Friday, Cyber Monday).
• Savings intentions: 24% earmarking funds for a major purchase in 2026, 21% for travel/vacations, 14% for life milestones.
• Overall consumer behavior:
• 67% will set a holiday budget; 59% expect to spend ≤ $600.
• 79% actively seeking coupons, sales, and deals.
• 73% plan to purchase gifts online (Amazon dominant); 53% still value in‑store shopping.
• 44% anticipate groceries/family meals as the largest holiday expense.
• 61% of Gen Z and 54% of Millennials intend to give experiential gifts vs. 36% of Gen X and 18% of Baby Boomers.
• Payment preferences:
• 89% have a credit card; only 31% prefer using it for holiday spending, while 47% favor debit cards.
• Among credit‑card users, 72% plan to apply rewards toward holiday purchases.
• Technology adoption:
• 33% will use generative AI for gift ideas; 36% for creating a holiday budget.
• Post‑holiday outlook: 60% expect to pay off balances in full by Jan 2026.

Notable Quotes

“Gen Z has grown up amid global economic uncertainty, and that may help explain why they demonstrate such strong financial awareness,” said Marc Womack, Head of U.S. Consumer Deposit & Payment Products at TD Bank.

“A rewards credit card is a great way to earn on your purchases,” added Chris Fred, Head of Credit Cards and Unsecured Lending at TD Bank.