Alfonso Soler | Stock | fake images
As the holiday shopping season begins, younger Americans are preparing to cut back 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 for Black Friday, Small Business Saturday or Cyber ​​Monday, according to the latest CNBC|SurveyMonkey 2025 Small Business Saturday Survey.
Our survey reveals that Generation Z and millennials (24%) rely on budgeting tools more than Americans overall and significantly more than Generation X (12%) and Boomers (10%). Their spending plans reflect a more intentional and disciplined approach.
Gen Z shoppers in particular are also turning to more inventive gifting strategies. They are much more likely to give handmade gifts as a cost-saving measure (24%), a notable contrast to older shoppers (13% for both Gen X and Boomers). This approach combines creativity with practicality and further underscores that younger Americans are feeling the financial strain.
Despite these cuts, most Americans (82%) – including younger consumers – still expect to shop for the holidays. But they plan to do it another way. A majority (82%) say they will do most of their holiday shopping outside of the Thanksgiving weekend, indicating that the traditional retail calendar continues to lose influence, especially among younger shoppers.
Small Business Saturday, for example, has become a reliable boost for Main Street, but this year’s data shows a shift in who participates and why. The survey reveals a clear generational divide in what prevents Americans from supporting small businesses on Small Business Saturday. Generation Z and millennials are much more likely to cite lack of awareness, not lack of intent, as the main reason they won’t participate. Nearly half (47%) of Gen Z shoppers say they will skip the day because they don’t know where local small businesses are, closely followed by millennials (38%).
Part of this awareness gap may reflect broader generational habits. Generation Z and millennials tend to rely more on online discovery when deciding where to shop, and search results often highlight 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 look.
Price also influences, but is secondary (17% for generation Z and 18% for millennials). Younger buyers still point to awareness much more than cost, underscoring that their biggest barrier is not willingness or affordability, but visibility. A significant proportion of younger consumers (39% of Gen Z and millennials) say they plan to spend less this season due to 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. Generation Z and millennials are coming to the holidays with tighter budgets, more intentional spending habits, and much less awareness of where local small businesses are located.
