This holiday shopping season, Gen Z is planning the biggest budget cuts
It’s way too early for most of us to be thinking of holiday shopping. But it’s definitely not for retail strategists, and some believe that younger people are planning to spend less this holiday season than older generations.

With the absolutely necessary caveat that it is way too early for anyone in their right mind to start their holiday shopping in October, a question for you: what’s your gift budget going be this year?
If you’re planning on skipping a stocking stuffer or two, you’re not alone. Apparently, holiday shoppers say they’re going to spend about 10% less than they did last year, according to a survey from the consulting company Deloitte.
Gen Z in particular is feeling thriftier; the youngest generation in the workforce is slashing the gift budget by 33%. Last year for the holidays, 25-year-old Somer Bryant and her roommate bought each other CD’s, those easily scratched compact discs older millennial dinosaurs put in a Sony Discman on the way to Blockbuster Video.
“I think one of them was Surfa Rosa, the Pixies. She really loves PJ Harvey, Fiona Apple, that sort of thing,” Bryant said.
Gen Z’s love affair with all things 1990s is well documented, but there’s another reason a CD is a great Gen Z gift in 2025: it’s relatively cheap. At least compared to the rising price of groceries or rent (Bryant pays $2,000 a month for her room in a New York apartment).
“I think that it's probably a common understanding among most people my age that, like the gifts are going to be cheaper,” Bryant said.
It’s not just housing costs and inflation hitting Gen Z especially hard this year, it’s also job security.
“Those coming out of a college are seeing a very tricky labor market at the moment,” said Brian McCarthy, a retail strategist with Deloitte.
McCarthy expects Gen Z shoppers to really go after value this holiday season; think discount or secondhand stores, or maybe they avoid shopping altogether.
“DIY gift, or do it yourself, 67% of Gen Z shoppers are saying they're going to look to actually make a gift this year,” said McCarthy.
Does burning a CD count as making your own gift these days?


