As holiday shopping season begins, younger Americans are preparing to scale back their participation more than any other generation.
Gen Z and millennials plan to shop with tighter budgets, shorter gift lists, and more creative cost-saving measures, whether it is for Black Friday, Small Business Saturday or Cyber Monday, according to the latest WHNY News|SurveyMonkey 2025 Small Business Saturday Survey.
Our survey finds that Gen Z and millennials (24%) rely on budgeting tools at higher rates than Americans overall and significantly more than Gen X (12%) and Boomers (10%). Their spending plans reflect a more intentional, disciplined approach.
Gen Z shoppers in particular also are turning to more resourceful gift-giving strategies. They are far more likely to make handmade gifts as a cost-saving measure (24%), a notable contrast with older shoppers (13% for both Gen Xers and Boomers). This approach blends creativity with practicality and further underscores that younger Americans are feeling the financial squeeze.
Despite these cutbacks, most Americans (82%) — including younger consumers — still expect to shop for the holidays. But they plan to do it differently. A majority (82%) say they will complete most of their holiday shopping outside the Thanksgiving weekend, signaling that the traditional retail calendar continues to lose influence, especially among younger buyers.
Small Business Saturday, for example, has become a reliable boost for Main Street, but this year’s data shows a shift in who is participating and why. The survey reveals a clear generational divide in what keeps Americans from supporting small businesses on Small Business Saturday. Gen Z and millennials are significantly more likely to cite a lack of awareness, not lack of intent, as the main reason they won’t take part. Nearly half (47%) of Gen Z shoppers say they’ll skip the day because they don’t know where local small businesses are, with millennials close behind (38%).
Some of this awareness gap may reflect broader generational habits. Gen Z and millennials tend to rely more on online discovery when deciding where to shop, and search results often elevate national retailers first. For Main Street, this creates a clear mandate: reaching younger shoppers depends on strengthening digital discoverability and making local options easier to find. Without a strong digital presence, many small businesses simply don’t appear where younger consumers are looking.
Price plays a role, too, but it is secondary (17% for Gen Z and 18% for millennials). Younger shoppers still point to awareness far more than cost, underscoring that their biggest barrier isn’t willingness or affordability, but visibility. A meaningful share of younger consumers (39% of Gen Z and millennials) say they plan to spend less this season because of the impact of tariffs, adding another layer of pressure to already tight budgets.
This year’s data makes one thing clear: young shoppers are navigating this holiday season differently. Gen Z and millennials are entering the holidays with tighter budgets, more intentional spending habits, and far less awareness of where local small businesses are.
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