Silke Mayr Inflation makes it harder for teens to stay within their holiday shopping budgets. A new Junior Achievement study reveals that rising costs are a key concern for teens buying gifts this season.
The JA Teens & Holiday Spending survey, which polled over 1,000 teens, found that 70% worry about inflation’s impact on holiday shopping. This is nearly the same as last year’s results, where 71% of teens shared similar concerns.
“While inflation has eased in some areas, anxiety about higher prices remains,” said Ed Grocholski, Chief Marketing Officer of Junior Achievement USA. “Teens are especially affected as they’ve seen firsthand the effects of rising costs.”
Price Increases Affect Teens’ Gift Budgets
Samhith Padala, an 18-year-old UC Berkeley freshman, shared how inflation impacts his spending on daily needs and holiday gifts.
“Inflation makes it harder to buy items that used to be cheap,” Padala said. “Items like candy, stuffed animals, gift wrap, and tape, which once cost a dollar at dollar stores, now cost 25 cents more.”
Padala, who co-founded a media production company at age 12, highlighted how rising prices force tough financial decisions. He described a friend’s struggle to choose between buying his mom a birthday gift or paying for gas. Despite these challenges, Padala plans to buy gifts for loved ones but expects to spend more due to inflation.
How Teens Are Paying for Gifts
The survey also explored how teens fund their holiday shopping. About 74% of teens said parents or caregivers would help with holiday spending, while 35% plan to use their own earnings from part-time or gig jobs.
Regarding shopping preferences, 75% of teens plan to shop in physical stores this year, down slightly from 76% in 2023. Meanwhile, 69% of teens plan to shop online, up from 67% last year. Grocholski noted a growing trend of teens viewing in-store shopping as a unique experience.
“Teens have constant access to online shopping, so visiting physical stores has become a more special event,” Grocholski said. “Many teens enjoy discovering items in person.”
Inflation’s Broader Impact on Holiday Spending
Teens are not alone in feeling inflation’s effects. A separate Gartner Marketing Practice survey revealed that 64% of consumers plan to maintain their holiday spending from last year, while 21% plan to reduce it.
Despite inflation worries, the National Retail Federation (NRF) predicts holiday spending will increase by 2.5% to 3.5% in 2024. Total spending is expected to reach between $979.5 billion and $989 billion during November and December, up from $955.6 billion in 2023.
While inflation continues to influence shoppers, both teens and adults seem determined to maintain their holiday traditions, even if it means spending more this year.