METRO DETROIT (WXYZ) — It may be a little early for some to start talking about holidays, but it is a very real thought that is going across people’s minds - how much money can they afford to spend from November to January? That’s something we asked with just 99 days until Christmas.
Watch Christiana's video report below
“Prices have went up a lot everywhere, and I have young children," said Millennial Mom Krista.
Krista has already started to think about her holiday shopping budget.
“I’ll definitely be watching my spending this year," Krista said.
She's not the only one cutting back this year. In a recent survey by PWC Shoppers, participants said they plan to spend five percent less than last year, the biggest drop since the Pandemic.
Answers varied by generation.
“At my age, I don’t spend a lot of money I like my time. I like sitting around the house doing bike rides," said David Gordon, a Baby Boomer.
“I think I’ll spend about the same and if I see a gift I don’t really care that much what it cost if I think someone will like it I’ll buy it," said Sandy Roush, a Baby Boomer.
“I’m pretty secure honestly. I feel okay about holidays this year," said Lexi Williams, a Millenial. “I probably will spend about as much as last year."
“Definitely more because now I have a job," said Mattison Dawson, a member of Gen Z.
The survey said that Gen Z is going to save the most money, because they're going to spend 23 percent less than they did last year. Did that surprise David?
Yes. They aren’t good at saving money, I don’t think they’re spenders," he replied.
We asked Economist Kevin Cotter with Wayne State University what this means.
“A downturn is definitely out of the norm, especially because in the past few years holiday spending had been rising," Kevin said.
Cotter said it's a reflection of how people are feeling about the future.
“Mirroring an overall slowdown in spending, people are...the fact that people are concerned about the future, people are being squeezed because of rising housing costs and worsening job prospects," Kevin said.
He said retailers are also cutting back because of increasing tariffs and trying to predict customer spending.
“I think people are concerned about price increases, which will eventually happen because of these tariffs," Kevin said.
So, is there anything that could change the trajectory of this at this point?
“Everyone’s taking a wait-and-see attitude. Most experts are predicting higher prices down the road, and that’s causing people to be conscious about spending now," Kevin said.
'Tis the season for making value-conscious choices.
