Core Insights - Generation Z is adjusting their holiday shopping habits by spending less, shopping early, and opting for secondhand items due to rising inflation and tighter household budgets [1][2][6] Economic Factors Affecting Holiday Spending - Gen Z is experiencing financial pressures, with many reporting smaller income gains and increased reliance on savings for everyday expenses. Approximately 25% of Gen Z respondents indicate their financial situation has worsened compared to the previous year [2][11] - The overall consumer sentiment in the U.S. remains cautious, with inflation being a primary concern for households, leading to significant shifts in consumer behavior [4][5] Changing Attitudes Impacting Holiday Shopping - Gen Z's cautious spending approach is expected to influence holiday sales, product availability, and pricing trends across all generations. This shift towards value-focused spending may lead to a more frugal and pragmatic approach to holiday shopping [3][8] - Many Gen Z consumers plan to prioritize essential items over discretionary spending, indicating a trend towards practical gifts and essentials [6][11] Spending Expectations - Gen Z consumers anticipate reducing their holiday budgets by 23%, contrasting with other generations who expect to maintain or increase their spending [11] - There is a notable shift towards purchasing secondhand items as a response to economic pressures, which may slow sales for retailers focused on new merchandise [11]