While most consumers in the U.S. have money on their minds this holiday season, Gen Z is deliberate about staying on budget.

According to TD Bank’s 2025 Merry Money Survey, which polled over 2,500 U.S. consumers on their holiday shopping and spending plans, most respondents born between 1997 and 2007 (88 percent) are considering ways to limit overspending.

Among Gen Z adults, 77 percent plan to set a holiday budget this year, and half (51 percent) plan to do so with AI, highlighting the generation’s inclination to adopt new strategies to stay within a budget as seasonal spending ramps up.

“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. “They’re redefining seasonal spending and taking advantage of technologies that help them blend traditional budgeting and saving habits with solutions like credit card rewards optimization apps and AI-enabled tools. This is a group of shoppers who are balancing financial discipline with a bit of holiday indulgence.”

Gen Z Shoppers are Anxious, Intentional and Strategic about Holiday Purchases
Among Gen Z respondents, nearly two-thirds (65 percent) admit that the financial aspect of the holiday season makes them anxious, perhaps why 6in 10 (60 percent) within the age group plan to spend less this holiday season due to tariff concerns, demonstrating a deliberate approach to managing costs and staying on budget.

By comparison, Gen X (72 percent) and Millennials (71 percent) are more likely to overspend during the holidays than Gen Z (60 percent).

Gen Z is also approaching holiday spending with intention, with nearly 9 in 10 respondents in the demographic (90 percent) and Millennials (87 percent) planning their spending around major shopping events, including Black Friday and Cyber Monday, to maximize deals.

Younger consumers are making an overall shift toward strategic, discount-driven shopping for the holidays, timing their purchases to stretch their buying power.

Gen Z’s holiday financial habits also reveal a mindset focused on long-term goals rather than short-term splurges, with a focus on saving for future priorities.

  • Twenty-four percent of Gen Z consumers surveyed plan to put money aside for a major purchase in 2026.
  • Twenty-one percent are planning travel or upcoming vacations, roughly double the share of Gen X shoppers (11 percent) who are doing the same.
  • Fourteen percent are saving for major life milestones such as weddings, relocations or new jobs.

Purpose and Connection Drive Holiday Spending Trends
Surveyed respondents are also leaning toward more meaningful ways to celebrate the holidays this year. Forty percent plan to gift experiences, with dinner or an evening out topping the list (55 percent), followed by spa or self-care days (31 percent) and travel or weekend getaways (30 percent). Younger generations are more likely to give experiential gifts, with 61 percent of Gen Z and 54 percent of Millennial respondents planning to do so, compared to 36 percent of Gen X and 18 percent of Baby Boomers. In particular, Gen Z and Millennials are more inclined to gift experiences such as travel, concert or event tickets, personalized experiences, annual memberships/passes, and fitness classes.

Beyond gifts, nearly half (44 percent) of respondents expect groceries and family meals to be the biggest holiday expense.

Consumers Embrace Seasonal Saving and Spending
This year’s data illustrates “cautious confidence and thoughtful preparation,” with two-thirds (67 percent) of respondents surveyed planning to set a holiday budget and 6 in 10 (59 percent) expecting to spend under $600.

Nearly 8 in 10 (79 percent) respondents are actively seeking coupons, sales and deals to manage expenses, underscoring shoppers’ prioritization of smart spending. And while most (82 percent) feel confident in managing their holiday expenses, over half (52 percent) of respondents plan to spend less due to tariff concerns.

For many, saving and planning begin before the immediate shopping season, as around half (53 percent) of those surveyed have set aside money throughout the year for holiday expenses, suggesting that lessons from recent inflationary years have affected financial habits.

Respondent’s financial discipline also remains strong once the holidays wrap up, with 6 in 10 (60 percent) expecting to pay balances in full by January 2026, underscoring a healthy post-holiday repayment mindset.

“Holiday preparation starts well before the first gift is wrapped,” Womack added. “This year we’re seeing that consumers are planning earlier, saving consistently and approaching the season with a greater sense of financial control. From setting money aside throughout the year to paying balances off quickly after the holidays are over, shoppers are proving that good preparation is just as important as smart spending.” 

How Americans Shop for the Holidays
Online purchases continue to dominate holiday shopping, with nearly three-quarters (73 percent) of respondents planning to purchase gifts on Amazon. However, traditional buying habits are far from disappearing, with 53 percent still looking for the in-person experience of malls and brick-and-mortar stores for holiday purchases.

While nearly all respondents (89 percent) have a credit card, only 31 percent prefer to use it for holiday spending. Instead, nearly half (47 percent) said they prefer to use their debit card while buying gifts.

“A rewards credit card is a great way to earn on your purchases,” said Chris Fred, Head of Credit Cards and Unsecured Lending at TD Bank. “Take a look at your available credit cards and see which offers the best rewards for the categories you are planning to purchase in. You can redeem rewards to help with holiday travel or use cash back rewards to maximize your holiday budget.”

Among those planning to use a credit card this holiday season, nearly three-quarters (72 percent) plan to apply their credit card rewards to their holiday spending.

Additionally, technology is playing a growing role in how respondents prepare for the holiday season, with one-third planning to use AI for gift ideas (33 percent) or to create their holiday budget (36 percent among those who plan to make one).

Methodology: The online survey, conducted by Big Village, a research and analytics firm, was among a sample of 2,521 U.S. adults ages 18 and older who celebrate the holidays. This survey was conducted from October 14-21, 2025. Image courtesy TD Bank