When it comes to spending this holiday season, Millennials are poised to outspend other generations, with more than a third (35%) stating that they will spend more this year than they did last year.
According to Discover's annual Holiday Shopping Survey, Millennials say higher income and more people on their shopping list are two reasons for their boost in spending. And they will also overwhelmingly use their mobile devices to shop.
Results from the survey, which polled Generation Z, Millennials, Generation X, and Baby Boomers on their previous holiday shopping habits and upcoming plans to purchase, also show that other generations are planning to spend more this holiday season versus 2018 as well, including 26% of Gen Z, 23% of Gen X, and 16% of Baby Boomers. In terms of how much, 39% of Millennials plan to spend $750 or more on gifts, followed by 35% of Baby Boomers, 33% of Gen X, and 11% of Gen Z who said they will spend the same amount.
Almost half (45%) of Millennials said they expected increased income to boost their holiday spending compared to 28% of Gen X, 26% of Baby Boomers, and 20% of Gen Z; meanwhile, 49% of Millennials reported they have more people to shop for, followed by 43% of Gen Z, 37% of Gen X, and 36% of Baby Boomers.
A majority of Millennials, 73%, will use a mobile device to shop for gifts while 58% of Gen X, 48% of Gen Z, and 32% of Baby Boomers plan to do the same.
Credit cards continue to be the favoured payment type for the holiday season, a trend that has increased since 2017. In 2019, 42% of respondents said they expect to use credit cards for most of their holiday gift purchases, compared to 38% in 2018 and 32% in 2017.
Of those who plan to use credit cards for the majority of their holiday shopping, 55% of respondents said they mostly use credit cards to earn points and rewards.
Identity theft and fraud continue to be on shoppers' minds, as 83% of all respondents reported some level of concern about it. To help protect themselves against fraud, 50% of Baby Boomers, 43% of Millennials, and 39% of Gen X use credit cards with built-in security features. However, 32% of Gen Z said they do not take any actions to protect themselves from identity theft/fraud, compared to just 11% of Millennials, 10% of Gen X, and 8% of Baby Boomers.
The national survey of 2,010 U.S. consumers ages 18 and up was commissioned by Discover and conducted by Dynata (formerly Research Now/SSI), an independent survey research firm, between October 21 and October 23, 2019.