Sayre Balk, 24, is spending less on holiday gifts this year. The administrative assistant just moved to New York City and is feeling the pinch on her wallet from the move and "rising prices for everything."
Other Gen Z shoppers are also cutting back their holiday spending by an average of 23%, according to a new holiday outlook.
Overall, U.S. consumers of all ages said they'd be spending 5% less this holiday season, citing rising prices, tariffs and higher cost of living, according to the latest PwC 2025 Holiday Outlook.
That was the first notable drop since the COVID-19 pandemic broke out in 2020, according to the global professional services firm.
Gen Z shoppers spent more last year during the holidays
But Gen Z shoppers, who are ages 13 to 28, have had a particularly dramatic reversal of their planned holiday spending compared with last year's results, Ali Furman, PwC consumer markets industry leader, told USA TODAY. Last year, they planned to spend 37% more on holiday shopping, she said.
This year, Gen Z is in a different spot, she said. Their average age is 22, so Furman said they're "coming of age." More are having kids and have mortgages, she said.
"They have more expenses in their lives ... compared to last year, making them even more budget conscious, looking to stretch their dollar further," said Furman.
Members of Gen Z are also more likely to have a hard time finding a job in this current market or to be more susceptible to losing their job, said Shikha Jain, a partner and head of consumer/retail at Simon-Kucher, a commercial strategy consulting firm.
Simon-Kucher also has a new holiday shopping report, which surveyed consumers in July, and is forecasting Gen Z shoppers to reduce their holiday shopping budget by only 1%, from $814 to $805, while Millennials will be spending 14% more year over year.
Gen Z likes to indulge on experiences, like concerts and vacations
Gen Z is not willing to compromise on their experiences, such as concert tickets and vacations, which have been "heavily impacted by inflation," said Furman.
Jain agreed, saying Gen Z has over time "moved away from material possessions and into trips and experiences...and more memories.
"What that means is that they will have to pull back their spending on more essential goods and services," Jain told USA TODAY.
Forty-seven percent of the Gen Zers spent more than $100 on "trips and experiences," compared to 43% of overall consumers, Jain said.
Wages make it hard to afford discretionary spending, shopper says
Balk typically doesn't spend more than $300 on holiday shopping since her family is small and she only gives gifts to her parents and closest friends.
She feels fortunate that her friends and family "understand how costly life is and don’t expect anything from me, but the concept of being unable to provide gifts for your friends and family is upsetting of course."
"Today's job market, it feels impossible to find a job that pays enough to afford discretionary spending like gifts, concert tickets, shopping, etc. – let alone rent and standard bills to survive," she said.