Gen Z and millennials are poised to spend the most this holiday season, but can they afford it?

How will they be spending their money for the holidays?

This surge in holiday spending is definitely made easier by so many shopping opportunities being just a click away. And Gen Z and millennials are not shying away from their digitally-savvy reputation.

The PwC study found that Gen Z consumers are leading the charge in using digital payment methods like PayPal (44% compared to 31% overall), Apple Pay and Android Pay (35% compared to 14%) and buy now, pay later platforms (11% compared to 5%).

They’re also more likely to complete their shopping early, with 21% of Gen Z respondents saying they plan to complete most of their shopping before Thanksgiving, compared to just 11% of shoppers overall.

As far as shopping methods go, making use of loyalty programs doesn't appeal as much to Gen Z consumers compared to Gen X or Boomers.

What are they spending their money on?

If you’re expecting a gift from a Gen Zer or millennial this holiday season, it is likely to align with their values as consumers. The study found that both generational cohorts demonstrate a strong preference for sustainable and ethically conscious brands.

Though, this doesn’t mean you’re necessarily going to be gifted a charity donation in your name. In fact, Gen Z in particular prefers giving physical items, as opposed to gift cards highly favoured by older generations.

Empower your investments with Qtrade

Discover Qtrade's award-winning platform and take control of your financial future. With user-friendly tools, expert insights, and low fees, investing has never been easier.

Start Trading Today

What about boomers?

While Gen Z and millennials are upping the ante when it comes to their spending, Gen X and Baby Boomers are cutting down this holiday season.

The more cautious approach from older Canadians is leading to decreased spending across all categories, with Gen X and Boomers averaging $1,766 and $1,412, respectively. These figures are down 11% and 9% from last year.

Respondents from the Prairies – Manitoba and Saskatchewan – as well as BC, are planning to spend on average $2,188 and $2,126 respectively. Quebec, on the other hand, will be the most frugal, with spending estimates at $1,474, the lowest average estimate of any province.

Don’t let the spending spirit get the best of you

Whether it be the simple urge to spend money on people you love, or the need for a vacation during the winter months, it’s understandable that people’s bills go up during the holiday season.

That being said, regardless of their generation, many Canadians can’t actually afford what they plan. In fact, 31% say they would dip into their savings – 32% in Quebec are actively taking this approach. Consumers in Ontario and Quebec are most likely to use retail financing options (19% and 18% respectively), while 20% of Ontarians said they would take on more debt to fund their holiday spending.

Survey methodology

PwC employed a nationwide online survey of 1,000 Canadian consumers, ensuring a representative sample across demographics like age, gender, income and region. The survey captured insights into planned spending, gift preferences, payment methods, shopping timelines and consumer values.