Whether it is caused by the dazzlingly bright lights or the warm, hazy feelings during the Christmas season, consumers tend to blow their Christmas shopping budgets. And considering Americans are looking to spend more than $ 1,200 on average this year, that's a lot of batter out of the window.
This is especially true of Generation Z, according to a new survey by credit bureau Experian. Nearly half of those surveyed who said it would be challenging to stay within their Christmas shopping budget were Generation Z.
About 39% of Gen Z said the biggest financial barrier to Christmas shopping was simply running out of money, and 20% of those who said they didn't have access to credit for buying gifts were Gen Z.
Overall, members of Generation Z twice as often as other age groups have to struggle with one or the other financial hurdle when shopping for Christmas.
But Gen Z isn't all alone with these Christmas shopping. While much of the US economy has recovered from the COVID-19 pandemic, some consumers are still feeling the effects of the economic downturn.
"Almost a third of US adults are facing a financial barrier caused by COVID that prevents them from shopping for vacation as planned.”
The survey found that nearly a third (32%) of U.S. adults face a financial barrier caused by COVID that prevents them from shopping for vacation as planned.
Still, more than half of those surveyed said they spent too much on their Christmas shopping.
And this overspending is unsettling consumers: 30% said they were stressed, 26% said they were overwhelmed and 25% said they were concerned about Christmas shopping this year.
But all of these worries could lead to better finances; 45% of respondents said they are doing a financial plan for 2021 to prepare for the new year.
And Gen Z is all about improving their financial lot. Seventy-nine percent of Generation Z consumers said they were motivated to improve their financial situation this holiday season.