Generation Z is redefining holiday spending by coupling financial discipline with cutting-edge technology, according to results from the TD Bank 2025 Merry Money survey released Thursday. The report, which polled over 2,500 U.S. consumers, finds that the youngest generation of shoppers is the most strategic about staying on budget this holiday season.
The survey revealed a high degree of financial anxiety and deliberate planning among Gen Z (born 1997-2007) when approaching the holidays:
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88% of Gen Z respondents are actively considering ways to limit seasonal overspending.
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77% plan to make a holiday budget this year.
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Nearly two-thirds (65%) admit that the financial aspect of the holiday season makes them anxious.
This anxiety translates into deliberate action, with 60% of Gen Z planning to spend less this holiday season—a rate lower than both Millennials (71%) and Gen X (72%), who are more likely to overspend.
“Gen Z has grown up amid global economic uncertainty, and that may help explain why they demonstrate such strong financial awareness,” Marc Womack, head of U.S. Consumer Deposit & Payment Products at TD Bank said. “They’re redefining seasonal spending and taking advantage of technologies that help them blend traditional budgeting and saving habits with solutions like… AI-enabled tools.”
The data highlights Gen Z’s unique reliance on technology to manage their finances:
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51% of Gen Z adults planning a holiday budget will use Generative AI tools to create or manage it.
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This reliance underscores a trend of adopting new, tech-forward strategies to control spending. Overall, one-third of consumers plan to use Generative AI for gift ideas (33%) or for creating their holiday budget (36%).
Gen Z shoppers are also highly intentional and strategic, with nearly nine in ten (90%) planning purchases around major shopping events like Black Friday and Cyber Monday to maximize discounts.
Gen Z’s disciplined approach is driven by a focus on long-term goals rather than short-term splurges. Many are budgeting now to save for future priorities:
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24% are putting money aside for a major purchase in 2026.
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21% are planning ahead for travel or upcoming vacations (roughly double the share of Gen X).
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14% are saving up for major life milestones like weddings or relocations.
In a broader trend, younger generations are leading the shift toward experiential gifts. 61% of Gen Z and 54% of Millennials plan to give experiences this year—such as travel, concert tickets, or spa days—compared to 18% of Baby Boomers.
Overall, consumers are approaching the season with a sense of financial control, with 53% having set aside money throughout the year for holiday expenses and 60% expecting to pay their credit card balances in full by January 2026.
