Gen Z Shoppers Crowned the Savviest of the Holiday Season
MARKETING
According to TD Bank's annual Merry Money survey, Gen Z shoppers are the most financially disciplined and tech-wise age group, with 88% taking steps to limit seasonal overspending and 51% using AI to make a holiday budget.
As the holiday shopping season ramps up, a new cohort is taking the crown for the most financially disciplined consumers: Generation Z. Despite growing up amid global economic uncertainty, these young shoppers are demonstrating sophisticated budgeting skills, strategic purchasing habits, and a strong commitment to long-term financial health.
According to the TD Bank 2025 Merry Money survey, which polled over 2,500 U.S. consumers, Gen Z shoppers born between 1997 and 2007 are not only the most intentional about their spending but are also embracing cutting-edge tools to help them budget.
AI is the New Budget Buddy
The data is clear: Gen Z is leveraging technology to manage their money better than older generations. A commanding 77% of Gen Z adults plan to make a holiday budget this year, and notably, half (51%) of these respondents plan to do so with Generative AI. This highlights an inclination to blend traditional saving habits with new, innovative tools to manage costs as seasonal spending ramps up.
“Gen Z has grown up amid global economic uncertainty, and that may help explain why they demonstrate such strong financial awareness,” said Marc Womack, Head of U.S. Consumer Deposit & Payment Products at TD Bank. “They're redefining seasonal spending and taking advantage of technologies that help them blend traditional budgeting and saving habits with solutions like credit card rewards optimization apps and AI-enabled tools.”
Anxiety Fuels Intention
The financial pressure of the holidays is real for Gen Z, with nearly two-thirds (65%) admitting that the financial aspect of the season makes them anxious. This anxiety, however, translates directly into intentional behavior:
Spending Less: Six in ten (60%) of Gen Z plan to spend less this holiday season, demonstrating a deliberate approach to managing costs. By comparison, Gen X (72%) and Millennials (71%) are more likely to overspend.
Strategic Shopping: Nearly nine in ten Gen Z (90%) and Millennial (87%) respondents plan their purchases around major shopping events like Black Friday and Cyber Monday to maximize deals.
Saving for the Long Game
Gen Z’s financial discipline goes beyond just the holidays; it's linked to long-term future planning. This generation is actively budgeting to save for major life goals:
24% of Gen Z consumers surveyed are putting money aside for a major purchase in 2026.
21% are planning ahead for future travel or vacations, nearly double the rate of Gen X shoppers (11%).
14% are saving up for major life milestones such as weddings, relocations, or new jobs.
This mindset is rooted in preparation: approximately half (53%) of consumers surveyed have been setting aside money throughout the year to prepare for holiday expenses, a lasting behavioral change instilled by recent inflationary years.
The data confirms that the Gen Z shopper is not a reckless spender but a highly intentional, tech-savvy consumer who prioritizes smart savings, making them the savviest spenders of the 2025 holiday season.